• Journal of the East Asian Society of Dietary Life
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• v.20 no.1
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• pp.166-174
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• 2010

It is widely accepted that there are first mover advantages in various existing industries. However, few studies have been conducted to evaluate the first mover advantages shown in the foodservice industry, whether first movers practically have first mover advantages, and what effects these advantages have on foodservice enterprises. Specifically this study was designed to identify the relationship between first mover advantages and business performance in the foodservice industry. To accomplish this, questionnaires were sent to and collected from selected first movers consisting of 70 foodservice franchised enterprises. SPSS 15.0 was then employed to conduct factor analysis, reliability analysis, correlation analysis, and regression analysis. The analyses revealed that the franchised foodservice enterprises could provide several strategies that enabled them to grow quickly and to establish more shops in their market. In addition, having a greater number of shops resulted in greater advantages when compared to their competitors. Moreover, the advantages of first movers had a significant effect on their business performance. Taken together, these findings imply that if foodservice enterprises franchise their business as early as possible, they can more easily preoccupy their market and enjoy more first mover advantages. This study is meaningful and differentiated from existing studies in that it investigated first mover advantages of the foodservice enterprises in the appropriate industry.

• The Korean Journal of Franchise Management
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• v.13 no.3
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• pp.31-43
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• 2022

Purpose: Service quality is a topic of constant interest in marketing research and practitioners. Service quality is an important factor influencing performance even in the context of coffee shops, and research on service quality management strategies continues by coffee shop researchers and practitioners. The service quality of coffee shops is a source of competitive advantage and is an important factor in enhancing customer and business performance. This study aims to identify the effects of cognitive evaluation on emotional and behavioral responses using a cognitive-emotional-behavioral framework and SOR model in the coffee shop context. Cognitive evaluation (service quality) consists of tangibles, responsiveness, assurance, reliability, and empathy dimensions. Research design, data, and methodology: In the proposed model, positive and negative emotions and satisfaction mediate the relationship between service quality and money to spend and visit frequency. The data were collected from customers who visited a coffee shop within the last 1 month. The survey was conducted for about one month. Among a total of 300 distributed questionnaires 261 responses were used for data analysis. The data were analyzed using frequency analysis, measurement model analysis, and structural equation modeling analysis with SPSS 28.0 and SmartPLS 4.0. Results: Tangibles, responsiveness, assurance, and empathy had significant positive effects on positive emotion, while only reliability had a significant negative effect on negative emotion. Both positive and negative emotions had significant positive effects on customer satisfaction, but not on money to spend and visit frequency. Lastly, customer satisfaction had significant positive effects on money to spend and visit frequency. Conclusions: The study revealed the relative weight of cognitive factors on customer emotions and confirmed the validity of SOR model. The fact that tangibility is the most important factor in increasing positive emotions and reliability is the most important factor in reducing negative emotions provides a direction for emotional branding strategies using the service quality mix of coffee shops. This study confirmed the full mediating role of satisfaction between positive and negative emotions and consumer behaviors (money to spend and visit frequency). This infers that when a coffee shop increases customer satisfaction through customer emotion management, the customer's money to spend and visit frequency in the coffee shop increases.

• Journal of Food Hygiene and Safety
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• v.35 no.2
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• pp.118-124
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• 2020

We investigated the content of sugar and sodium in 4 types of chicken (fried, seasoned, soy sauce-flavored, cheese powder-flavored). A total of 123 samples were collected from franchise stores and markets in Seoul. The sugar content of chicken samples was analyzed by HPLC-ELSD (High Performance Liquid Chromatography-Evaporative Light Scattering Detector). The average sugar content of seasoned chicken was highest at 8.7±2.3 g/100 g while that of fried chicken was lowest at 0.6±0.3 g/100 g. The average content of sugar sorted by place of sale showed a significant difference (P<0.05). The sodium content in chicken samples was analysed using the ICP-OES (Inductively Coupled Plasma-Optical Emission Spectrometry). The sodium content of seasoned chicken with cheese powder was the highest at 627.0±109.2 mg/100 g and that of fried chicken was the lowest at 448.0±65.3 mg/100 g. The sugar content of seasoned chicken sold in both franchise stores and markets was found to exceed the 50 g daily level as recommended by the WHO. In addition, the average sodium content in seasoned chicken (franchise stores and markets) and cheese-powdered chicken was more than twice as high as the daily 2,000 mg recommended by the WHO.

• Journal of Distribution Research
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• v.17 no.1
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• pp.37-63
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• 2012

In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.

• Korean Management Science Review
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• v.25 no.1
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• pp.107-121
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• 2008

As to more efficiently manage the inventory in the retail supply chain and to meet the customer demand in a timely manner, vendor-managed inventory (VMI) has been widely accepted, which manages inventory in the retail supply chain via sharing information and collaborating with the retailers. Applying VMI generates vendor-managed inventory/distribution problem (VMIDP), which involves inventory management for both the vendor and the retailers, and the design of vehicle routes for delivery, to minimize the total operating cost in the supply chain. In this paper, we suggest a mixed integer programming (MIP) model to obtain the optimal solution for VMIDP in a two-echelon retail supply chain, and develop an efficient heuristic based on the operating principles of the MIP model. To evaluate the performance of the heuristic, its solution was compared with the one of the MIP model on a total of twenty seven test problems. As a result, the heuristic found optimal solutions on seven problems in a significantly reduced time, and generated a 4.3% error rate of total cost in average for all problems. The heuristic is applied to the case problem of the local famous franchise company together with GIS, showing that it is capable of providing a solution efficiently in a relatively short time even in the real world situation.

• Journal of the Korean Society of Industry Convergence
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• v.25 no.6_3
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• pp.1285-1291
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• 2022

In this paper, we propose a low-cost, low-power embedded environment-based deep learning lightweight model for input images to recognize laundry management codes. Laundry franchise companies mainly use barcode recognition-based systems to record laundry consignee information and laundry information for laundry collection management. Conventional laundry collection management systems using barcodes require barcode printing costs, and due to barcode damage and contamination, it is necessary to improve the cost of reprinting the barcode book in its entirety of 1 billion won annually. It is also difficult to do. Recognition performance is improved by applying the VGG model with 7 layers, which is a reduced-transformation of the VGGNet model for number recognition. As a result of the numerical recognition experiment of service parts drawings, the proposed method obtained a significantly improved result over the conventional method with an F1-Score of 0.95.

• Culinary science and hospitality research
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• v.19 no.1
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• pp.57-69
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• 2013

This study analyzed the effects of the relational norm factor of food service franchising on the intention to remain, in view of the importance of relational norms, as antecedent variables, to franchisees' perceived fairness to enhance the competitiveness by formation of long-term relationship between interested parties to food service franchising, the franchiser and the franchisee. According to a questionnaire survey, more than 100 franchisees that recorded three business years in Seoul, Incheon and Gyeonggi area were selected for convenience sampling. Then, among them, 515 effective samples were analyzed. For statistical data, detailed types of analysis were performed by using AMOS 17.0, such as factor analysis, exploratory factor analysis, confirmatory analysis and frequency analysis. The purpose of this study was to examine the relationship between the franchiser and the franchisee by arranging relational norm factors for the relationship to be suitable for the current situation of Korea, instead of Western-style theory-based relationship marketing, and by understanding a connection between perceived fairness and management achievement-related variables, and to make a conceptual framework for building a positive relationship between the franchiser and the franchise in future food service franchising industry. Moreover, it aimed to increase franchisee satisfaction and results including re-contract according to perceived positive relationship value on the franchiser and to make contribution to find and show the proper direction for development of the Korean-style food service franchising system.

• Culinary science and hospitality research
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• v.19 no.5
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• pp.206-224
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• 2013

The purpose of this study was to examine the formation of customer's repeated use that is real long-term commitment in franchise/chain coffee shops. 457 effective samples were analyzed using PASW 18.0 and AMOS 18.0. The results of the analysis of the relationships between user experience, customer satisfaction, customer commitment and repeated use are as follows. First, it was presented that atmosphere, price fairness and coffee product quality had a positive impact on customer satisfaction. Second, customer satisfaction had a positive impact on customer commitment and repeated use. Finally, there was the mediating effect of continuous commitment between customer satisfaction and repeated use. Based on the results of the above analysis, the managerial implications for increasing repeated use of coffee shops are as follows. First, the strategy for enhancing performance of user experience is to try to improve atmosphere(facilities, ambient/lighting), price fairness, coffee product quality(taste, flavor, temperature). Second, the strategy for forming repeated use is to enhance customer commitment(affective commitment, continuous/normative commitment).

• The Korean Journal of Franchise Management
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• v.10 no.2
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• pp.49-58
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• 2019

Purpose - As the growth potential of the cultural contents industry steadily grows, the cinemas industry is growing fast especially due to popularity and commerciality. The recent in the cinemas industry is evolving on multiplex cinemas that combine cultural facilities such as theaters, restaurants, and shopping centers. Due to the rapid growth of multiplex cinemas, many researchers have studied the characteristics of visiting customers in Korea. Among them, selection attribute of multiplex cinemas, including the service quality and physical environment, is important because it may examines the cause of customer 's behavior. Thus, this research focuses on the effects of the selection attributes of the multiplex cinemas on customer satisfaction and their loyalty. This research suggests the guidelines for how cinemas should manage their customers and build their customers satisfaction and loyalty that improve business performance. Research design, data, and methodology - This study tests the structural relationship between selection attributes of multiplex cinemas, customer satisfaction, and loyalty. selection attributes of multiplex cinemas divide into five sub-dimensions such as movies facility quality, services, cleanliness, accessibility, and snack bars quality. In order to examine the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 100 students in their 10-20s and were analyzed using SPSS 22.0, SmartPLS 3.0 and fsQCA program. Result - The findings of this research are as follows. First, all selection attributes except cleanliness have significant positive impacts on customer satisfaction and loyalty. Second, customer satisfaction has significant positive impact on loyalty. Third, as a result of fsQCA, high satisfaction and high accessibility were the necessary conditions on loyalty. Fourth, the necessary conditions for male and female groups were different. Conclusions - The implications of this study are as follows. Overall, multiplex cinemas should manage selection attributes basically regardless of the type of theater. Especially, cleanliness was not significant, but the customer probably consider it an essential and basic factors. Also, they are able to manage the selection attributes differently depending on the type of gender. For the male customers, it is effective that centralized strategy and for female customers, it is effective that emphasized the multiplex cinemas image.

• The Korean Journal of Franchise Management
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• v.10 no.4
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• pp.19-29
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• 2019

Purpose: In beauty industry, service quality is very critical, because it impacts on the customer's positive attitude and behavior to the beauty salon or beauty brand. Thus, this research examines the effects of service attributes on customer satisfaction and loyalty in beauty salon. This research suggests the guidelines for how beauty salons should manage their physical environment, price policy, professional skills, and employees that improve management and business performance. Research design, data, and methodology: This study examines the structural relationship between service attributes, customer satisfaction, and loyalty. Service attributes divide into four sub-dimensions such as servicescape, price service, technical service, and employee service. In order to test the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and examined in previous studies. A total of 160 questionnaires were distributed and collected, and 150 were used for analysis except 10 that were unresponsive or unfaithful. The data were analyzed using SPSS 22.0 and SmartPLS 3.0 statistical package program. Result: The results of this research are as follows. First, all sub-dimensions of service attributes such as servicescape, price service, technical service, and employee service have significant positive impacts on satisfaction. Second, customer satisfaction have significant impact on loyalty. Conclusions: This study suggests an integrated model of the relationship that the characteristics of beauty salon service attributes affect customer loyalty through satisfaction, and suggests how to manage and allocate limited resources in the beauty industry. The findings of this research indicate that the level of customer satisfaction is shown to be increased by servicescape, technical characteristics, value of money, and human attributes. Thus, beauty salon management should focus on the relationship with their customers how to improve customer loyalty through satisfaction. The quality of beauty service influences customer's attitudes and behaviors toward beauty salon. Considering the beauty business, where the quality and customer satisfaction of beauty services are determined by the hairdresser's beauty skills,, the beauty salons must find ways to improve their skills and new trend of hair style. If beauty salon customers perceive the high quality of beauty service, they revisit beauty salon and recommend it to others.