• Title/Summary/Keyword: Franchise Customers

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Do Customers want Employees' Authentic Service or Just Service? The Effects of Employees' Authenticity and Justice on Customers' Commitment and Behavior

  • Jung, Hyo Sun;Yoon, Hye Hyun
    • Culinary science and hospitality research
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    • v.22 no.6
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    • pp.120-131
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    • 2016
  • The purpose of this study was to examine the structural relationship between customers' perception of authenticity, justice, customer commitment, and customer behavior in franchise coffee shops. To test the hypotheses of the study, a total of 428 customers in Korea were considered in an empirical analysis using a two-step structural equation model (SEM) approach. In particular, employees' authenticity had relatively great influence on customers' continuous and affective commitment and their justice had greater influence on customers' normative commitment. Also, customers' continuous commitment, normative commitment, and affective commitment significantly influence customer participation behavior, while normative commitment and affective commitment have a significant effect customer citizenship behavior. Research thus far divided justice and authenticity into separate concepts and examined relation with customer commitment or behaviors but the present study put cognitive process of justice and emotional process of authenticity on the same line and evaluated their different influence on customer commitment and behaviors, thereby verifying that not justice perceived by customers induced desirable customer behaviors but authenticity they felt with their heart played a more superior role in customer commitment or behaviors. This means that authentic services rather than justice induce customers' positive behaviors.

Study of the Effect of Nature Based Solutions of Green Hotel on Customers' Pro-environment Behavioral Intentions (친환경 호텔의 자연기반해법과 고객의 친환경 행동의도와의 관계에 대한 연구)

  • Tae Uk KIM;Sun Mi YUN
    • The Korean Journal of Franchise Management
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    • v.14 no.2
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    • pp.49-60
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    • 2023
  • Purpose: NBS (Natural-based Solutions) characteristics as eco-friendly hotels were divided into eco-friendly indoor and outdoor to structurally verify the relationship between customers' perceived eco-friendly value, psychological well-being, customer satisfaction, and pro-environmental behavioral intention. Research design, data and methodology: This survey conducted responses to customers who had experience using eco-friendly hotels for the past two years. SPSS 22.0 and AMOS 22.0 statistical programs were used for the collected questionnaire data. First, frequency analysis and confirmatory factor analysis (CFA) were verified, and structural correlation between variables was verified by covariance matrix structural equation (CB-SEM). Result: First, NBS was found to have a significant positive (+) effect on perceived eco-friendly value and psychological well-being. Second, psychological well-being was found to have a significant positive (+) effect on customer satisfaction and eco-friendly behavioral intention. Finally, Hypothesis 3 was accepted as perceived eco-value showed a significant positive (+) effect on eco-friendly behavioral intention, but Hypothesis 2 was rejected because it did not have a significant effect on customer satisfaction. Conclusions: theoretical and practical implications for the impact of NBS as an eco-friendly hotel on customers' eco-friendly behavior can be provided, as well as basic evidence for establishing efficient management strategies for hotel companies.

The Effects of Perceived Quality and Relationship Quality on Store Performance(Revisit Intention) in the Context of Coffee Specialty Shops

  • LEE, Sang Suk;LEE, Jee Eun
    • The Korean Journal of Franchise Management
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    • v.12 no.1
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    • pp.21-34
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    • 2021
  • Purpose: This study examines the structural relationship between perceived quality, relationship quality, and revisit intention in the context of coffee shop. In this model, perceived quality consists of product, service, and experience quality, and relationship quality consists of satisfaction, trust, and commitment, and performance consists of revisit intention. More specially, this study identifies whether perceived quality plays a mediating role in the relationship between perceived quality and relationship quality and the direct/indirect effects of perceive quality on intention to revisit. Research design, data and methodology: The survey was conducted from September 1 to 30, 2019. The data were collected from 320 respondents and analyzed using structural equation modeling (SEM) with AMOS program. Results: The findings are as follows. First, quality perception of coffee specialty stores had a statistically positive effect on relationship quality, indicating supports H1. Therefore, customers can know that they are aware of the quality of coffee specialty stores, including quality of service and experience as well as products, and that they form relationship quality with coffee specialty stores. Second, relationship quality between coffee shops and customers had a significant positive effect on performance. Thus, H2 was supported. The results show that if the coffee shop does not consider relationship quality as important, customer loyalty decreases, the number of customers decreases, and the number of customers who switch to another coffee shop increases, which can lead to a threat to the coffee shop. Third, in the case of hypothesis H3, it was found that there was a partial mediating effect of satisfaction and trust between quality perception and reuse intention of coffee specialty stores, so hypothesis H3 was partially supported. As commitment appears to have no mediating effect, it can be said that customers who use coffee shops are not only difficult to maintain as regular customers of a particular coffee shop, but also have ample room to move to other coffee shops. Conclusions: Although many scholars point out the importance of service quality, few studies were conducted in the context of the Korean food service industry (including coffee shops). From this perspective, this study tested several hypotheses that the quality (product, service, experience) perceived by customers can have a positive effect on relationship quality and performance (re-visit intention), either directly or indirectly. The findings of this study demonstrate that if the manager of a coffee shop understands the characteristics of quality perceived by customers and the role of relationship quality, the effect of quality perceptions on customers can be maximized in order to maintain the relationship with customers.

The Impact of Service Quality of Franchise Coffee Shop' s on Affective Commitment and Repurchase Intentions (프랜차이즈 커피전문점의 서비스품질이 정서적 몰입과 재구매의도에 미치는 영향 - 수도권 지역 대학생을 중심으로 -)

  • Ju, Yoon-Hwang;Lee, Young-Chul;Yang, Hoe-Chang
    • The Korean Journal of Franchise Management
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    • v.3 no.1
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    • pp.46-72
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    • 2012
  • Currently, the service industry share in domestic industry is increasing. Especially the size and marketability of the food service industry, which satisfies with basic human desire, is growing significantly. In this food industry, the coffee industry is recognized as a different area from the traditional food industry. The age of instant coffee at low price has gone. Today, more and more customers want to drink more delicious coffee and coffee that is good to their bodies. Especially as individualism has been rambling, more and more people enjoy individualism and want their personal space. This is why coffee speciality stores have been universalized. Also, as coffee speciality stores have been generalized, their own service quality is necessary and they should satisfy and affirm their loyalty to the customers in line with the enhancement of service quality. The purpose of this research is understanding of the impact of coffee specialty shop's service quality on affective commitment and repurchase intentions. The results of an empirical study in this research are as follows: First, compassion among the execution factors of coffee specialty shop's quality has a positive effect on both of affective commitment. But typicality and reactivity don't. Second, affective commitment have a positive effect on repurchase intentions. With a base of the above research result, we should comprehend that another service quality factor exists compared to other dining-out industry and establish marketing strategies in order to contribute to enhance repurchase intentions for the customers.

Effects of Franchise Restaurant Selection Attributes on Perceived Value, Customer Satisfaction and Loyalty (프랜차이즈 레스토랑의 선택속성이 지각된 가치와 고객만족 및 고객충성도에 미치는 영향)

  • Wang, Shuo;Lee, Yong-Ki;Kim, Sung-Hwan
    • The Korean Journal of Franchise Management
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    • v.9 no.4
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    • pp.7-19
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    • 2018
  • Purpose - Recently, global management in Korea franchise industry is becoming an important keyword. As an important branch market, Chinese market plays a major role not only by making experience of the competitiveness among global brands which offers a foothold to become a top global brand, but also by actualizing an economies of scale in production, sales, etc. Therefore, it is necessary to identify key successful factor influencing customer evaluation and responses of Korean franchise restaurant targeting Chinese consumers in China context. The purpose of this study is to examine the effects for Korean franchise restaurant selection attributes on perceived value, customer satisfaction and customer loyalty in Chinese context with SmartPLS 3 and Artifical Neural Network(ANN). Research design, data, and methodology - For these purposes, the authors developed several hypotheses. A questionnaire survey was conducted on the panel of online survey companies for Chinese consumers who have visited Korean franchise restaurants. A total of 404 data were analyzed using structural equation modeling(SEM) and artifical neural network(ANN) with SPSS 22.0 and SmartPLS 3.0. Result - The findings of this study are as follows: First, the alternative model findings show that facilities & atmosphere, employee service, and menu influenced on utilitarian value, customer satisfaction, and customer loyalty directly. Second, employee service influenced on customer satisfaction. Third, menu influenced on hedonic value. Fourth, brand reputation influenced on utilitarian value. Fifth, hedonic value increase customer satisfaction and customer loyalty. Sixth, hedonic value increase customer loyalty. Seventh, customer increase customer loyalty. And, the ANN analysis shows that utilitarian value is the first most important factor influencing customer satisfaction, followed by hedonic value, facilities & atmosphere, menu and employee service. However, the ANN analysis shows that customer satisfaction is the first most important factor influencing customer loyalty, followed by utilitarian value, hedonic value, brand reputation, menu, and employee service. Conclusions - This study provides practical implications for enhancing customer satisfaction and customer loyalty by applying the ANN technique that complements the limitations of the linear structural relationship analysis using the proposed model and the alternative model. In other words, the SEM-ANN model provides guidelines on how Korean franchise restaurants should formulate facilities & atmosphere, employee service, and menu mix strategies in China. In addition, ANN 's analysis shows that restaurant brand reputation plays a pivotal role in increasing customer loyalty. The fact suggests that Korean franchise companies should establish their domestic brand reputation prior to their entry into overseas markets such as China.

The Effect of Extended Marketing Mix Factors of Fitness Center on User's Satisfaction, Recommendation Intention, and Repurchase Intention (피트니스센터의 확장된 마케팅믹스 요인이 이용객의 만족도, 추천 의도, 재구매 의도에 미치는 영향)

  • Chae Won HA;Byung Min KIM
    • The Korean Journal of Franchise Management
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    • v.14 no.2
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    • pp.1-17
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    • 2023
  • Purpose: Due to the COVID-19 and inflation, participation sports companies, including fitness centers, are facing challenges. Since a fitness center must simultaneously manage facilities and operate services, both factors must be considered when developing a marketing strategy. Therefore, this study examines the effects of expanded marketing mix factors (price, physical evidence, place, people, product, and promotion) including facilities and services on the consumption behavior (satisfaction, recommendation intention, repurchase intention) of fitness center customers. Research design, data, and methodology: The data were collected from sample of 323 fitness club members in Seoul and analyzed with SPSS Win Ver.28.0 program. Result: The specific results of the study were as follows; First, extended marketing mix factors had significant positive (+) effect on satisfaction. Second, extended marketing mix factors had significant positive (+) effect on recommendation intention. Third, extended marketing mix factors had significant positive (+) effect on repurchase intention. Fourth, satisfaction had significant positive (+) effect on recommendation intention and repurchase intention. Conclusions: To encourage consumption behavior, it is necessary to convert existing customers into loyal ones by increasing satisfaction and establishing a virtuous cycle structure that recommends them to others while also improving repurchase intention.

Impacts of a Beauty Shop's Marketing Mix(7Ps) on Perceived Value, Reputation, and Revisit Intention. (뷰티숍의 마케팅 믹스가 인지된 가치, 평판, 그리고 재방문 의도에 미치는 영향)

  • Do Kyung LEE
    • The Korean Journal of Franchise Management
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    • v.14 no.4
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    • pp.67-83
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    • 2023
  • Purpose: The beauty market is growing rapidly and becoming more competitive as new shops enter the market and offer similar products and services. The way for industries such as beauty shops to succeed in market competition is to understand customer needs and provide a marketing mix appropriate for those needs. Research design, data, and methodology: The survey was conducted for a total of 4 days from October 4 to October 7, 2023, and a total of 2,431 copies were distributed and 463 copies were returned. Excluding 2 copies with insincere responses, 461 copies were used for analysis. The data were analyzed with SPSS 25.0 and SamrtPLS 4.0. Result: Product, price, promotion, people, and physical evidence influence perceived value, but place and process didn't. Product, process, and physical evidence influence reputation, but price, location, promotion, and people didn't. Perceived value influences revisit intention but did not reputation. Reputation influences revisit intention. Conclusions: First, beauty shops must develop beauty services that can satisfy customers' needs. Second, beauty shops must continue to invest in external facilities and interior design. Third, intangible service processes can help the beauty shop's reputation. Fourth, beauty shops need to maintain a balance between price and perceived value so that customers can be satisfied with the service experience.

Effect of Cognitive Dissonance in Franchise Foodservice Advertisement on Customer Satisfaction and Post-purchase Behavior (외식광고로 인한 인지부조화가 소비자의 구매 만족도 및 구매 후 행동에 미치는 영향)

  • Ko, Hyun-Ju;An, So-Jung;Han, Ji-Yoon;Yoon, Ji-Young
    • Journal of the Korean Society of Food Culture
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    • v.28 no.6
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    • pp.631-639
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    • 2013
  • The purpose of this study was to analyze the post-purchase behavior of customers who experienced cognitive dissonance after exposure to a franchise foodservice advertisement. The study adopted cognitive dissonance theory to explain the dissonance resulting from the combination of advertisements and actual product that consumers received. In detail, the research hypothesized that cognitive dissonance will affect consumers' post-purchase behavior as well as their efforts to reduce dissonance. Exactly 274 questionnaires were used in the analysis. The results showed that more than 80% of respondents were influenced by advertisements when purchasing menus, and 50% were unsatisfied when the provided menu "was not the same as the advertisement shown". It was found that advertisement type did not significantly affect either group that experienced dissonance. In terms of satisfaction, however, the former group showed greater dissatisfaction when dissonance occurred (p<.001). Finally, there was a significant difference between the two groups regarding post-purchase behavior (p<.05). Customers with dissonance were likely to 'express dissatisfaction directly to the store', 'leave negative reviews', and 'participate in negative word-of-mouth'. Thus, the results revealed that cognitive dissonance could significantly influence customer satisfaction and consequently lead to negative post-purchasing behaviors.

Caffe Bene: Creating Values for Customers

  • Ahn, Kwangho;Yoo, Changjo;Kim, Youngchan
    • Asia Marketing Journal
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    • v.14 no.3
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    • pp.185-197
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    • 2012
  • Caffe Bene, one of the most notable coffeehouse chain brands in Republic of Korea, gives us some thought-provoking issues in terms of sustainable success. Despite harsh competition among various coffeehouse brands, Caffe Bene has been accomplished astonishing outcomes in domestic market and now ranked 2nd place in sales among the global coffeehouse franchise in 2010 and 2011. These achievements were possible mainly because Caffe Bene adopted distinctive shop design, maintained aggressive marketing strategy, developed new menu, and combined the unique Korean culture with ordinary concept of café to make its place attractive. However, since Korean coffeehouse market is getting saturated and consumers are becoming savvy about coffee, Caffe Bene needs to find a new solution to overcome growth stagnation. Besides, many experts pointed out that irrational increase in the number of stores might hurt its business in the aspect of managing distribution channel and providing consistent services. Also, customers of Caffe Bene have shown that it has to complement its critical weaknesses: inferior coffee taste and relatively high price for a cup of coffee. Especially, some people view that the company is shifting its high rental fee, interior cost and PPL marketing cost to consumers by charging high price for coffee. To get over the problems, Caffe Bene is currently using C/S Consumer Management System though experts are questioning about the efficacy because of the conflict between purpose of the system and the headquarters' plan. Present CEO Kim also announced that the company will complete its logistics system in the latter half of 2012 to provide stores with more high quality coffee beans to improve taste of coffee. Thus, in this case, we describe how Caffe Bene succeeded in Korean market and enumerate its key success factors. Also, we specify the long-term goals of Caffe Bene and introduce the current policies and strategies to show how the company is working on to achieve its ultimate goal. By reading and analyzing this business case, students could get useful insights regarding franchise management and think about issues on competing in a saturated market. Also, it would be worthwhile to generate creative solutions for the problems that Caffe Bene is now facing to broaden the practical perspective.

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The Effect of Brand Hearsay of Franchised Bakery Stores on Brand Attitude and Brand Loyalty (프랜차이즈 베이커리 전문점의 브랜드 풍문이 브랜드 태도와 브랜드 충성도에 미치는 영향)

  • HAN, Sang Ho
    • The Korean Journal of Franchise Management
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    • v.13 no.4
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    • pp.13-22
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    • 2022
  • Purpose: Brand hearsay refers to information that can be acquired from advertisement, media publicity, and word-of-mouth prior to experiencing products or services of brands. Previous information about brands obtained through brand hearsay affects consumer behavior in choosing brands. Moreover, brand hearsay is an effective communication method in promoting brands to consumers. Thus, bakery franchises need to improve strengths and differentiate characteristics of their brand, thereby attracting more consumers. Therefore, this study investigates relationships the effect of brand hearsay on consumers' brand attitude and brand loyalty in the context of franchised bakery brands. Research design, data, and methodology: A research model was proposed to examine structural relationships between brand hearsay (advertising, publicity, word-of-mouth), brand attitude, and brand loyalty. An online survey was conducted to consumers who had an experience of visiting a franchise bakery. A total of 513 responses were used for data analysis. SPSS 22.0 was used for analyzing general demographics, and SmartPLS 4.0 was used to test validity and reliability of the proposed model. Result: Among attributes of brand hearsay, advertisement and word-of-mouth had positively significant effects on brand attitude, but no significant effect was found between publicity and attitude. Advertisement had a positively significant impact on brand loyalty, while publicity had a negative effect on brand loyalty opposite to hypothesis. Moreover, brand attitude had a statistically significant effect on brand loyalty. Conclusions: In the context of franchise bakeries, brand hearsay contents may change consumers' attitude toward brands but does not increase brand loyalty. Though media publicity does not affect consumers' attitude toward brands, it may decrease brand loyalty when consumers are too exposed to it. In addition, it is necessary to enhance brand attitude to increase brand loyalty of customers. This study provides bakery franchisors and franchisees information about which type of brand hearsay (e.g., advertisement, word-of-mouth, media, publicity) is effective in enhancing brand attitudes and loyalty of consumers. Further studies may include other variables (e.g., trust) in addition to attitude and loyalty, or compare findings based on brand characteristics (e.g., low-to-medium/high prices, store size).