• The Korean Journal of Franchise Management
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• v.7 no.1
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• pp.31-44
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• 2016

Purpose - This study aims to examine different impacts of franchisor's leadership and franchisee's marketing efforts on franchisee dissatisfaction and switching intentions, and to investigate how franchisee dissatisfaction plays a mediating role in the relationship between these constructs. This study attempted to fill the gap in the literature by treating the franchisee dissatisfaction as a mediator in the relationship between these constructs, identify how franchisor's leadership and franchisee's marketing efforts have effects on franchisee dissatisfaction, in turn, reduce switching intentions, and provide the managerial implications for building a long-term relationship to achieve mutual goals between franchisors and franchisees Research design, data, and methodology - In order to test the hypotheses, the data were collected from franchisees in Seoul and Gyeonggi Province. The franchisee owners were informed about the purpose of this study by the trained interviewers. The respondents received a letter introducing the purpose of this study and another letter that the owners wrote to encourage their active participation. Among the 300 questionnaires distributed, 260 (86.7%) questionnaires were returned. Of those collected questionnaires, 6 uncompleted responses were excluded, and 254 questionnaires with an effective response rate of 84.7% were coded and analyzed using frequency, confirmatory factor analysis, and correlations analysis, and structural equation modeling with SPSS 21.0 and SmartPLS 3.0. Results - The findings of the study are as follows. First, franchisor leadership had a negative effect on franchisee dissatisfaction, but franchisee marketing efforts did not have a significant effect on franchisee dissatisfaction. Second, franchisee dissatisfaction had a positive effect on switching intentions. Third, franchisor leadership had a negative effect on switching intentions, but franchisee marketing efforts did not have a significant effect on switching intentions. Conclusions - This study researched the franchisor's leadership as a single factor of transformational leadership. Thus, it may have limits in measuring leadership. Future studies shall include emotional, loyal, and transactional leadership. In addition, the future studies shall also research the effect of franchisor's leadership and franchisees' marketing efforts on dissatisfaction and switching intentions. For example, the franchisor's relationship-oriented efforts can be a crucial parameter that reduces dissatisfaction and switching intentions.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.15 no.3
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• pp.89-101
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• 2020

The purpose of this study is to examine how the variables of managerial competencies, namely transformational leadership, internal marketing, and structural influences, affect managerial performance through job satisfaction and customer orientation, by focusing on managers of clothing stores. Furthermore, the study aims to draw implications in connection with academic or practical start-ups that can improve management performance. Through examples of transformational leadership, internal marketing, and management performance of the previous study, the significance of the study is further stressed. Also, based on the previous study, this study empirically analyzes what results can be expected, focusing on managers of retail clothing stores, department stores, franchise stores, etc. In this study, we conduct an empirical analysis of 305 managers of retail clothing stores, department stores, franchise stores, etc. Because the results of the empirical analysis are from experiments at clothing stores first, it is found that managers' transformational leadership must go through a mediating effect process, which is job satisfaction for management performance. Second, it is found that transformational leadership must also go through a mediating effect process, which is customer orientation for management performance. Third, it is found that internal marketing must also go through a mediating effect process, which is job satisfaction for management performance. Therefore, as the researcher sought to verify, there is a complete mediating effect in retail clothing stores, department stores, franchise stores, etc., and it is confirmed that its role is significant. A study on whether or not entrepreneurship, as a control variable, affects business performance is conducted to find the statistical values that can be determine management performance when managers of retail clothing stores, department stores, and franchise stores answer entrepreneurial surveys with education- and knowledge-intensive backgrounds. As a result, with the statistical figures, it is confirmed that the managers are striving to improve their management performance based on their education- and knowledge-intensive backgrounds. Based on the research results, this study tried to test the parameters that can improve the management performance through empirical analysis centering on managers, Furthermore, the study attempted to draw implications for academic, practical, and start-ups that can improve management performance.

• Culinary science and hospitality research
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• v.23 no.8
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• pp.173-183
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• 2017

The purpose of this study is to investigate the causal relationship between new brand awareness and new brand awareness according to type of restaurant menu purchase information. This study will provide basic research data on viral marketing strategy through online marketing of restaurant companies. The purpose of this study is to investigate the effect of information obtained through blog information and SNS advertisement on word effect (information acceptance and information transfer) and to investigate the effect of word of mouth effect on consumers' purchase intention. A total of 206 samples were used for this analysis and regression analysis was performed using SPSS 18.0. The results of the study are as follows. First, experience type, timely relevance and consensus among the characteristics of blog information affect information acceptance. Experience, and accuracy are affecting information delivery. Second, information discomfort among the characteristics of SNS advertising information influences the acceptance of information. Information, entertainment and trust are affecting information dissemination. Third, information acceptance and information diffusion affect purchase intention.

• Journal of Distribution Science
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• v.13 no.1
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• pp.35-46
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• 2015

Purpose - This paper attempted to investigate the relationships among the perception of job insecurity and organizational effectiveness, and it examines these relationships while considering the moderating effect of trust in the manager and self-efficacy. Job insecurity is an independent variable, organizational effectiveness aspects (job satisfaction, organizational commitment, and turnover intention) are dependent variables, and trust and self-efficacy are moderators. Research design, data, and methodology - Regression analysis was used to verify the effects. The measurement items were already deemed as reliable and valid in the previous study, but for this purpose, some modifications were made. To examine the model, this study relied on the samples chosen from Korean employees in the six franchise business firms. The survey was conducted on 288 workers. Each question is based on a 5-point Likert type scale. The data were analyzed using SPSS 18.0. Results - The results of the study are summarized as follows. First, job insecurity has an influence on organizational effectiveness aspects (negatively on job satisfaction, negatively on organizational commitment, and positively on turnover intention). Second, analyzing the moderating effect of trust, trust in manager is mediated between job insecurity and organizational effectiveness aspects (on organizational commitment and on turnover intention). However, employees' trust in manager had no significant moderating effect on the job insecurity-job satisfaction relationship. Third, self-efficacy is mediated between job insecurity and organizational effectiveness aspects (on job satisfaction, on organizational commitment, and on turnover intention). Conclusions - First, it is necessary to be aware of the seriousness of employees' job insecurity in franchise firms, which have played a pivotal role in national economic growth, and to create a detailed plan for reducing insecurity and actively implementing it. To this end, the franchise companies should implement efficiency efforts such as obtaining an appropriate capacity of equipped personnel and a training program. Second, there are moderating effects of self-efficacy and trust in the relationship between job insecurity and organizational effectiveness. Depending on business conditions, stability and instability can only be experienced in the organizations of franchise companies. This can give rise to instability in employment. Therefore, it is necessary to develop and utilize a system that can be minimized with a change in the new awareness of employment instability. After all, a good leader (manager) must accumulate personal trust and build up a core competence that is necessary to become competent in the field himself. Even if you lack the material resources to improve performance, if the leader with the core competencies (e.g., technical/management /organization/marketing/design) can gain the trust of the supervisor, you can get a good organizational performance. Therefore, you should foster a healthy organizational culture through education such as leadership training and employee training to be built on trust between the leaders and the employees. In addition, you need to focus on HRD&M training in order to increase the self-efficacy of the supervisor.

• Asia Marketing Journal
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• v.15 no.4
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• pp.223-241
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• 2014

In May 2012, the collaboration of Hana Bank, top financial service company, and SK Planet, top telecommunication service provider, introduced a new credit card that was filled with all-in-one benefits into the market. Leveraging strong infrastructure of two companies, each top in its own industries, the awareness and preference of 'Club SK Card' brand rapidly increased to about 25% in less than one year. Moreover, this new card was enthroned in the most sold credit card of year 2012, accounting for a market share of 7.2% in the credit card market and more than 80% in the mobile credit card market. To make these results possible, 'Club SK Card' marketing team developed an effective marketing communication strategy which followed the 6M model. The mission of the marketing communication strategy was simple and clear. It was to deliver the card's inherent strengths on consumer benefits that come from the support of subsidiary and affiliated companies of SK Planet. According to OK Cashbag data, the marketing communication team selected the appropriate target consumers and approached them directly, inducing actual purchase behavior. The target consumers received straightforward messages about 'Club SK Card' and were led to join in the new membership at their most frequently visited supermarket or franchise restaurant. The straightforward communication message embedded in an eye-catching commercial ad with a hook song accompanied with a dance was delivered via public media. The ad became so popular that many other television programs quoted or made parodies of the ad. Courtesy of the commercial ad, the brand name disseminated rapidly and widely among the public. In October 2012, an ingenious planning and persistent implementation of the communication strategy results 'Club SK Card' to be ranked top in brand awareness as well as advertising preference tests.

• Culinary science and hospitality research
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• v.14 no.4
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• pp.456-468
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• 2008

This paper analyzes how the service quality affects customer satisfaction and loyalty, focusing on a franchise restaurant company 'Wonhalmoney Bossam'. The result shows that store locations and food cost of the menu, as an additional quality formation factor, influence customer satisfaction and loyalty rather than the main quality formation factors. This study strongly suggests the marketing preparation of menu price and the choice of locations are most significant as an additional factor. Therefore, Korean food restaurants should develop their marketing strategies from the customer's point of view, and reasonable price setting and menu selection with appropriate location will create customer satisfaction and revisit.

• Journal of Global Scholars of Marketing Science
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• v.18 no.2
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• pp.65-88
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• 2008

Since the implementation of economic reforms in 1978, the Chinese economy grows rapidly at an average annul growth rate of 9% over the post two decades. Franchising has been widely recognized as an important source of entrepreneurial activity. Trust is important in that it facilitates relational exchanges by permits partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. In the relationship between the franchisors and franchisees, trust has been described as an important source of competitive advantage. However, little research has been done on the factors affecting trust in Chinese franchisor-franchisee relationships. The purpose of this study is to investigate what factors affect the trust in the franchise system in China, and to provide guidelines and insights to franchisors which enter Chinese market. In this study, according to Morgan and Hunt (1994), trust is defined as the extending when one party has confidence in an exchange partner's reliability and integrity. We offered a conceptual model of the empirical study. The model shows that the factors affecting the trust include franchisor's supports, communication, satisfaction with previous outcome and conflict. We also suggested the franchisor's supports and communication like to enhance the franchisee's satisfaction with previous outcome, and the franchisor's supports, communication and he franchisee's satisfaction with previous outcome tend to decrease conflict. Before the formal study, a pretest involving exploratory interviews with owners from three franchisees was conducted to make sure the questionnaire was relevant and clear to the respondents. The data were collected using trained interviewers to carry out personal interviews with the aid of an unidentified, muti-page, structured questionnaire. The respondents comprised of owners, managers, and owner managers of franchisee-owned food service franchises located in Beijing, China. Even though a total of 256 potential franchises were initially contacted, the finally usable sample consisted of 125 respondents. As expected, the sampling method was successful in soliciting respondents with waried personal and firm characteristics. Self-administrated questionnaires were used for all measures. And established scales were used to measure the latent constructs in this study. The measures tapped the franchisees' perceptions of the relationship with the referent franchisor. Five-point Likert-type scales ranging from "strongly disagree" (=1) to "strongly agree" (=7) were used throughout the constructs (trust, eight items; support, five items; communication, four items; satisfaction, six items; conflict, three items). The reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.80. The proposed measurement model was estimated using SPSS 12.0 and AMOS 5.0 analysis package. We conducted A series of exploratory factor analyses and confirmatory factor analyses to assess the convergent validity, discriminant validity, and reliability. The results indicate reasonable overall fits between the model and the observed data. The overall fit of measurement model were $X^2$= 159.699, p=0.004, d.f. = 116, GFI =.879, NFI =.898, CFI =.969, IFI =.970, TLI =.959, RMR =.058. The results demonstrated that the data reasonably fitted the model. We also examined construct reliability and reliability and average variance extracted (AVE). The construct reliability of each construct was greater than.80 and the AVE of each construct was greater than.50. According to the analysis of Structure Equation Modeling (SEM), the results of path model indicated an adequate fit of the model: $X^2$= 142.126, p = 0.044, d.f. = 115, GFI =.892, NFI =.909, CFI =.981, IFI =.981, TLI =.974, RMR =.057. As hypothesized, the results showed that it is strategically important to establish trust in a franchise system, and the franchisor's supports, communication and satisfaction with previous outcome tend to reinforce franchisee's trust. The results also showed trust seems to decrease as the experience of conflict episodes increases. And we also noticed that franchisor's supports and communication tend to enhance the franchisee's satisfaction with previous outcome, and communication tend to decrease conflict. If the trust between the franchisor and franchisee can be established in a franchise system, franchising offers many benefits and reduces many costs. To manage a mutual trust of relationship with their franchisees, franchisor's should provide support effectively to their franchisees. Effective assistant services have direct effect on franchisees' satisfaction with previous outcome and trust in franchisor. Especially, franchise sales process, orientation, and training in the start-up period are key elements for success of the franchise system. Franchisor's support is an accumulated separate satisfaction evaluation with different kind of service provided by the franchisor. And providing support definitely can improve the trustworthy image of the franchisor. In the franchise system, conflicts of interests and exertions of different power sources are very common. The experience of conflict episodes seems to negatively relate to trust. Therefore, it is important to reduce the negative side of the relationship conflicts. Communication actually plays a broader role in reducing conflict and establish mutual trust in franchisor-franchisee relationship. And effective communication between franchisors and franchisees can improve franchisees' satisfaction toward the franchise system. As the diversification of Chinese markets, both franchisors and franchisees must keep the relevant, timely, and reliable communication. And it is very important to improve the quality of communication. Satisfaction with precious outcomes seems to positively relate to trust. Franchisors and franchisees that are highly satisfied with the previous outcomes that flow from their relationship will perceive their partner as advancing their goal achievement. Therefore, it is necessary for both franchisor and their franchisees to make the welfare of partner with effort. Little literature has focused on what factors affect the trust between franchisors and their franchisees in China. This study developed the hypotheses regarding the factors affecting trust in the transaction relationship. The results of data analysis supported the hypotheses strongly. There are certain limitations in this study. First, we may point out that some other factors missed in this study could be significantly important. Second, the context of this study, food service industry, limits its potential generalizability for all franchise systems. More studies in different categories of franchise system are needed to broaden its generalizability. Third, the model was tested empirically in a sample in Beijing, more empirical tests of the proposed model in other Chinese areas are needed. Finally, the analysis in this study was solely based on the perception of franchisees and the opinions of franchisors were not included.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.3
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• pp.1157-1164
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• 2011

In this study, association of small business is divided into four groups: Franchise, Joint Brand, Industry Association and Registered Retailer. Cluster analysis is taken to find what kind of strategic considerations associated small businesses choose when they set up new strategies. The results show that there are some differences in the perception of association, effects of association and final performance of management by gender, academic background, and age. The data also find three clusters: price competitive, marketing competitive and neither group. Implications of this study is that government should focus more on not only improving infrastructures of self-businesses but also associating small businesses, modernizing managerial systems in the future.

• Asia Marketing Journal
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• v.14 no.3
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• pp.119-135
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• 2012

The purpose of this research is to investigate the effects of the product display type on the consumers' purchase intention, attitude toward store, and revisit intention in the various mobile shopping situations. To test the hypothesis, between-subjects experiment with 3 mobile shopping situations (outdoor place, public transportation, commercial facilities) by 3 product display types (search, category, product) was conducted, and analyzed with ANCOVA (analysis of covariance). The result of the experiment shows there are no main effects of the mobile shopping situations and the product display types, but the interaction effects of the product display type and the mobile shopping situation on the purchase intention and the revisit intention are statistically significant. However the attitude toward the store is not affected by the treatments. Experiment results suggest that the positive consumer responses in terms of the purchase and revisit intention can be achieved when the product display is matched with the situation in the mobile shopping setting. Controlling consumers' evaluation on the product information and their experience of online shopping, we can take these effect as the results of match-up between the product display type and the situational factors surrounding mobile shopping. The result provides strong support for the location-based service in mobile shopping. Most of the mobile device can utilize the consumers' location which can be easily interpreted as the situational factors. With regard of the level of the external stimulation, the shopping service providers can offer the main interface with the right match with the consumers' situations. When the external stimulation level is high, they should provide the category display or product display in the target promotion in their mobile shopping apps. However if the target is on the way with the low external stimulation level, they should provide the search format as the main interface in their apps. More interestingly, this kind of manipulation does not affect the consumers' attitude toward the store according to our research result. Future research direction is discussed.

• The Korean Journal of Franchise Management
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• v.4 no.1
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• pp.1-24
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• 2013

The purpose of this work is to analyze the case that Yeongju Municipality Government of Gyeongbuk and Jung Donuts Co., Ltd., a franchise company, activated local economy through Farm's Franchise Commercialization (FCC) and to establish the concept of FCC. As a food service franchise company, Jung Donuts specializes in making and selling glutinous rice donuts. In cooperation with Commodity Dept. of Yeongju Municipality Government, the company cultivates raw materials under contract. Such farm's franchise business has the following advantages: First, it is meaningful in the point that it contributes to opening a new market of local agricultural products in a stable way. In short, by using most agricultural products of Yeongju as raw materials, the business serves as a stable market for farmers. Secondly, it is possible to set a reasonable price through stable supply of raw materials. It is to advantages of both producers and consumers. Thirdly, the business brings about the effect of employment rise. It can cause increases in employment of franchise head office and its agencies, and of the Commodity Dept.. Lastly, it produces the promotion effect of local special products. By expanding its agencies across the country, a franchise business can promote the items of raw materials in terms of marketing. The successful FCC needs to meet three requirements as follows. The first one is to establish systematic logistic system. Stable logistic system is required in order to directly distribute and deliver products to nationwide agencies by a producing place. The second one is constant R&D activity. Through the activity of R&D of raw materials and equipment, they should be used most effectively. The third one is to build mutual trust relationship. For long-term business achievements, it is required to establish mutual trust relationship in which relevant entities share their visions with each other and cooperate with each other.