• Journal of Information Technology Services
• /
• 제15권2호
• /
• pp.203-217
• /
• 2016

This paper explores the distribution of the retail coffee franchise stores in Seoul using geostatistical analyses. The fact that lots of coffee stores are concentrated in the central area-Jongno and Jung-gu and commercial area-Gangnam and Seocho shows that the size of the floating population and potential customers is one of main drivers for making decisions on the locations of new stores. Except these 4 districts, the number of stores and population exhibit a positive correlation. By extracting the information on the 6 large coffee franchises store locations, we calculate the both haversine distances between stores of the same franchise and between stores of different franchises. We then empirically test the sitting and marketing strategies of Starbucks, Ediya, and Paik-Dabang using distance distributions. Significant pairs of Starbucks stores located within 100m confirm the sitting strategy of Starbucks which opens additional stores at crossways, stations, near shopping malls or other business zones though there already exist Starbucks stores. Meanwhile considerable portion of Ediya stores are found near Starbucks stores, which coincides with the sitting strategy of Ediya. We also find that Paik-Dabang that uses the low cost strategy has its stores open relatively farther than other franchises from Starbucks stores.

• Journal of Distribution Science
• /
• 제17권8호
• /
• pp.15-24
• /
• 2019

Purpose - The relationship between personal consumption value and brand trust and brand attitude, brand trust and brand attitude, and brand loyalty was analyzed at a time when customers visiting domestic and foreign brands with mutual competition recognized the coffee shop as a new cultural space. Research design, data, and methodology - To examine these research models, samples were collected from 348 peoples who visited Coffee Franchise Companies during March to April, 2019. Results - The results of the study showed that Most of the assumptions about consumers' personal consumption values and brand trust, brand attitude and brand loyalty were adopted. This shows that there is a positive and organic relationship between these variables. Conclusions - Consumers' personal consumption values are found to have a positive impact on brand trust and brand attitudes. This means that the more positive an individual's consumption value is, the more confidence and likability a brand has. Brand trust has been shown to have a positive impact on brand attitudes. Brand attitudes and brand trust also have a positive impact on brand loyalty. This means efficient management of brand trust and brand attitudes in chain service companies is necessary.

• The Korean Journal of Franchise Management
• /
• 제8권2호
• /
• pp.5-16
• /
• 2017

Purpose - This study empirically analyzes the effects of social responsibility activities (legal, charitable, environmental, ethical) of franchised chain hotels on customer value and SNS citizenship behavior. Furthermore, this study examines mediating role of customer value on SNS citizenship behavior. Design, data, and methodology - A survey was conducted on customers residing in Korea who had visited the franchised chain hotels in Seoul, Gyeonggi, and other regions, over a period of three months (from October 1, 2016 to December 31, 2016). There were a total of 426 valid samples, and the hypotheses were tested through hierarchical analysis. Results - First, among the social responsibility activities of franchised chain hotels, all four factors of legal, charitable, environmental, and ethical responsibilities had a statistically significant positive effect on customer value. Second, among the social responsibility activities of franchised chain hotels, all four factors had a statistically significant positive effect on SNS citizenship behavior. Third, customer value had a statistically significant positive effect on SNS citizenship behavior. Conclusions - Since social responsibility activities are utilized as a means of direct marketing, for creating and selling images of products and services of franchised chain hotels, it is necessary to become a fixed form of corporate culture.

• The Korean Journal of Franchise Management
• /
• 제8권1호
• /
• pp.43-53
• /
• 2017

Purpose - The coffee market in Korea has been dramatically developed and coffee chains dominate the Korean coffee market recently. Customer's perceived value is one of the marketing tools to get competitive advantages of coffee chains, and plays a critical role to study on coffee franchise industry. Thus, this study is to identify the effect of customer's perceived value (price, brand, service, and quality) on revisit intentions and word-of-mouth(WOM). Research design, data. and methodology - Customer's perceived values consists of four dimensions. 253 samples of 320 were used for data analyses excluding unusable responses. The data were analyzed with SPSS 21.0 and SmartPLS 3.0. Result - First, customer's perceived brand value and service value have a significant, positive effect on revisit intentions. Second, Price value and brand value have a positive influence on WOM. Third, gender difference plays a moderating role in the relationship between brand value and price value and WOM, and between brand value and revisit intentions. Conclusions - Males tend to focus more on their perceived brand value of coffee shops for revisit and recommendation, otherwise females consider price value to give an advice to others. Based on the results of this study, the marketers of coffee chains can develop effective strategies regarding gender difference as well.

• The Korean Journal of Franchise Management
• /
• 제11권1호
• /
• pp.19-29
• /
• 2020

Purpose - To understand the assessment basis of customers' coffee shop experience and give more practical advices to the franchised coffee shops which are poorly managed in the competitive market, this study identified factors to measure the quality of customer experience and explored the relationship between these factors and customer satisfaction and loyalty. Further, this study analyzed which role self-efficacy played in the structural relationship between the quality assessment factors, satisfaction and loyalty of franchised coffee shops. Research design, data, methodology - The data were collected from respondents who had visited franchised coffee shops within the previous month through online survey. The questionnaires were surveyed from February 11 to February 14, 2019. A total of 318 responses were collected after excluding four of incomplete or uncandid responses. A structural equation modeling approach was used to examine the proposed hypothesis and a confirmatory factor analysis was employed to verify the four dimensions of quality assessment. Results - The findings of this study are as follows. First, the three of quality assessment variables significantly influenced on satisfaction except environmental quality. Second, economic and service quality significantly influenced on self-efficacy but environmental and menu quality didn't. Third, satisfaction significantly influenced on loyalty but not on self-efficacy. Fourth, self-efficacy significantly influenced on Loyalty. Conclusions - This study identified the four dimensions to assess the franchised coffee shop service - menu, environment, service and economic quality and verified these four dimensions are valid as indicators to measure the quality of customers' coffee shop experience. Further, by empirically testing the structural relationships among these quality assessment dimensions, satisfaction, self-efficacy and loyalty, this study provided theoretical foundations to explore the relationship between customer and the franchised stores in restaurant businesses. For the industry, the study findings showed that customers highly appreciated menu and economic quality of the service rather than the stores' interior. This indicate that the franchised coffee shops need to focus more on the basics of coffee such as taste and menu variety and economic value than the decoration of the store, which are often over-invested nowadays.

• The Korean Journal of Franchise Management
• /
• 제12권1호
• /
• pp.7-19
• /
• 2021

Purpose: According to the growth of technology in the service industry, the interaction service between customer and employee has recently been transformed into between customer and technology by Self Service Technology (SST) requiring direct interaction with customers. In this context, self service technology such as unmanned ordering system installed at the store is actively introduced at the work place to reduce labor costs by food and retail company and the research for self-service technology which is rapidly replacing existing face-to-face service is needed. As the growth speed of SST is rapid, many researchers have studied the characteristics of SST, in every sector of business worldwide. Among the characteristics, attributes, Self Service Technology Quality (SSTQUAL) to evaluate SST is important because it may cause the customer's behavior. Thus, this research focuses on the effects of SSTQUAL on SST Satisfaction and SST continuance usage intention. This research suggests the guidelines for how Restaurant Company should prepare SST and build their customer satisfaction and continuance usage that increase the sales. Research design, data and methodology: This study tests the structural relationship between SSTQUAL of unmanned ordering system, SST satisfaction and SST continuance usage. SSTQUAL divided into four sub-dimensions and two categories, cognitive service attributes (Convenience, Functionality) and affective service attributes (Enjoyment, Assurance). In order to achieve the purposes of this research, research model and hypotheses were developed based on previous researches. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 524 customers experiencing SST and were analyzed through SPSS 25.0 and SmartPLS 3.0 statistical package program. Results: The findings of this research are as follows. First, all SSTQUAL have significant positive impacts on SST satisfaction. Second, SST satisfaction has significant positive impact on SST continuance intention. Third, cognitive service attributes and affective service attributes had wealth of explanation of service attribute more than a single dimension. Conclusions: The implications of this study are as follows. Overall, Restaurant Company should manage SSTQUAL consisting of not only cognitive service attributes (Convenience, Functionality) but also affective service attributes (Enjoyment, Assurance) to satisfy customers basically regardless of the type of restaurant.

• The Korean Journal of Franchise Management
• /
• 제14권1호
• /
• pp.1-21
• /
• 2023

Purpose: During COVID-19, consumers prefer social distancing or contactless activities for safety, and hygienic condition has become one of the most important factors in evaluating restaurants. Therefore, this study aims to investigate whether offline/online word-of-mouth is affected by restaurant quality. Research design, data and methodology: The data were collected from 480 consumers who had experiences of visiting a restaurant in the past 90 days and analyzed with SPSS 28.0 and SmartPLS 4.0 programs. Results: Physical environment and menu had positively significant effects on brand love, while employee service and hygiene had no significance on brand love. Restaurant environment, menu, and hygiene had negatively significant effects on brand hate, but employee service had not significant impact on brand hate. Brand love had positively significant effects on offline and online word-of-mouth, and brand hate had negatively significant effects on offline and online word-of-mouth. Conclusions: First, restaurants need to develop a pleasant space where customers can have emotional experiences. Second, restaurants need to fulfill customers' desire for global food consumption. Third, restaurants should ensure hygiene and safety to prevent customers' brand hate. Lastly, restaurants need to establish offline/online word-of-mouth strategy to identify which restaurant quality attributes influence brand love/hate and offline/online word-of-mouth.

• Journal of the Korean Operations Research and Management Science Society
• /
• 제40권2호
• /
• pp.79-93
• /
• 2015

Today, consumer needs are diversified, continually changing and differentiated. Under the market conditions of unlimited competition to satisfy those needs, businesses focus on relationship-building with customers, as well as on quality of service. As interests in the coffee market rise, in these days, coffee culture diffusion and coffee franchise chain increase have been proceeding under the lead of the young people. This study aims to find the effects of service quality on customer (Korean, Chinese and Foreigner) satisfaction using logistic regression. The results of this study show somewhat different characteristics depending on the characteristics of country people. It is expected that this study can be very useful in regard to similar business.

• The Korean Journal of Franchise Management
• /
• 제6권2호
• /
• pp.1-16
• /
• 2015

The purpose of this study was to examine the structural relationships among consumer's values(individualism and collectivism), attitude, subjective norms, and visit intention using reasoned action theory(RAT). The data were collected from 12 5 customers who visited coffee shops in Seoul and Kyonggi and were analyzed using structural equation modeling with SPSS and AMOS The result of the overall model analysis appeared as follows: χ2=11.347, df=2, p=0.003, GF I=0.966, NF I=0.946, CF I=0.954, RMR=0.05 The findings are as follows: First, collectivism had a positive influence on attitudes and subjective norms. Second, Individualism had a significant positive influence on attitude toward coffee shops, but not on subjective norms. Third, both attitude and subjective norm had positive effects on visit intention.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• 제11권5호
• /
• pp.77-90
• /
• 2016

This study is to examine the importance of site selection and service quality in franchise business as food service franchise became one of the fastest-growing service industries today. The chief finding of this study is as follows: First, a survey in locational and service quality factors affecting food service franchise shows that responders are more concerned with hygiene and visibility of the store than proximity and transportation advantages which reflects low statistical significance, thus the distance did not seem to be a big problem for the responders in the context that they mostly visit nearby food franchise. Second, the examination of the influence by the service quality factors and customer satisfaction shows significant positive relation with customer response, speed and accuracy, and accuracy factors which reveals that the responders prefer prompt response and swift judgment toward the customer's needs and expectations, professional knowledge services to the credibility factors in which little correlation with the customer satisfaction were found. Third, the examination of the influence by the service quality factors, locational factors, and re-visit reveals that customer response and specialty showed statistically significant correlation with intention of WOM (Word of Mouth) and revisit, which suggests that swift judgment and response toward the customer's needs and expectations, professional knowledge services is of great importance to both customer satisfaction and revisit. The study on the aspects of locational and service quality factors affecting franchise industry's customer satisfaction was conducted as above, an investigation in both factors' influence on the customer satisfaction was made, and based on the results of the analysis, this research seeks an optimal operation strategy of a franchise business. Food service franchise are relatively very competent to business adminstration and reaction capability to consumption changes due to the already established market, and there are stores springing up everywhere inspired by the founders who are too confident of their success in the franchise business. However, it is necessary for the franchise beginners to figure out a zone oriented, regular customer oriented business strategy than just complying with the head office manual. Owing to an increasing trend of opening medium to large sized stores and investments in the wake of converting to multiple business type Korean food franchise, there is growing need to set up new concept of store development and operational management strategy in order to overcome the excessive competition and limited sales volume of the old-fashioned small sized, small capital franchise stores. Furthermore, as most business category of food service franchise serve very similar menus, from a product differentiation point of view, it is required to map out flexible sales concept including the adoption of competitive and low-price strategy. In conclusion, as is shown in the analytical research, the customers' optimal choice fluctuate over their preferences like customer convenience and circumstances rather than insisting on specific brand, thus it will be necessary for the franchise stores to draw up aggressive strategy and planning in running food service franchise to maximize their profits.