• Culinary science and hospitality research
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• v.14 no.2
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• pp.153-169
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• 2008

The purpose of this study is to determine the effects of production strategies operated by franchisors in the food service industry on the franchisees' culinary competence and subsequently franchisees' satisfaction with performance and recontract intention. In order to accomplish this purpose, two franchised enterprises which used mass-purchasing and mass-producing before distributing to each franchisee for the production strategies were participated and eventually 287 franchisees responded to this survey. Factor analysis and Cronbach's alpha showed the validity and internal consistency for the survey questionnaire. LISREL(8.72) was used to test the relationships between variables; production strategy, culinary competences, franchisee satisfaction, and recontract intention of the franchisees. The results present that the franchisees' satisfaction with the management system, quality of distribution, and quality of foods influenced on differentiation performance and supply performance of franchisees. On cost performance, only satisfaction with the food cost had an impact. The higher franchisee satisfaction with the franchisees' operations was, the higher recontract intention was in the franchise business. The results suggest the critical points for improving foodservice supplying system as well.

• Journal of Korea Trade
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• v.24 no.8
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• pp.81-100
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• 2020

Purpose - Based on complexity theory, this study develops a configurational model to predict the profitability of Halal cosmetics firms in the Indonesian and Malaysian markets. The proposed research model involves two level configurations-industry context and selling strategies-to predict high and low scores of a firm's profitability. The industry context configuration model comprises industry stability, product homogeneity, price sensitivity, and switching cost. Selling strategies include customer-focused, competitor-focused, and margin-focused approaches. Design/methodology - This is the first empirical study that calculates causal models using a combination of industry context and selling strategy factors to predict profitability. Data obtained from the marketing managers of cosmetics firms are used to test the proposed configurational model using fuzzy-set qualitative comparative analysis (fsQCA). It contributes to the current knowledge of business marketing by identifying the factors necessary to achieve profitability using analysis of condition (ANC). Findings - The results revealed that unique and distinct models explain the conditions for high and low profitability in the Indonesian and Malaysian halal cosmetic markets. While customer-focused selling strategy is necessary to attain a higher profit in both the markets, margin-focused selling strategy appears to be an essential factor only in Malaysia. Complexity of the interactions of selling strategies with industry factors and differences between across two study markets confirmed that complexity theory can support the research configurational model. The theoretical and practical implications are also illustrated. Originality/value - Despite the rapid growth of the global halal industry, there is little knowledge about the halal cosmetic market. This study contributes to the current literature of the halal market by performing a set of asymmetric analytical approaches using a complex theoretical model. It also deepens our understating of how the Korean firms can approach the Muslim consumer's needs to generate more beneficial turnover/revenue.

• 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 Korean Journal of Franchise Management
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• v.2 no.1
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• pp.173-199
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• 2011

A franchisee has to depend on the overall system, such as knowhow and management support, from a franchisor in the franchise system and the two parties do not start with the same position in economic or information power because the franchisor controls or supports through selling or management styles. For this, unfair trades the franchisor's over controlling and limiting the franchisee might occur and other side effects by the people who give the franchisee scam trades has negatively influenced on the development of franchise industry and national economy. So, the purpose of this study is preventing unfair trade for the franchisee from understanding the causes and problems of dispute between the franchisor and the franchisee focused on the dispute cases submitted the Korea Fair Trade Mediation Agency and seeking ways to secure the transparency of recruitment process and justice of franchise management process. The results of the case analysis are followed; first, affiliation contracts should run on the franchisor's exact public information statement and the surely understanding of the franchisee. Secondly, the franchisor needs to use their past experiences and investigated data for recruiting franchisees. Thirdly, in the case of making a contract with the franchisee, the franchisor has to make sure the business area by checking it with franchisee in person. Fourthly, the contracts are important in affiliation contracts, so enacting the possibility of disputes makes the disputes decreased. Fifthly, lots of investigation and interests are needed for protecting rights and interests between the franchisor and franchisee and preventing the disputes by catching the cause and more practical solutions of the disputes from the government.

• Proceedings of the Korea Contents Association Conference
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• 2008.05a
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• pp.339-342
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• 2008

Franchisors court additional franchisees as marketing partners for continued growth in sales revenue. Competitive climate, potential franchisees have their choice of suitors and are likely to scrutinize them carefully. As this research makes, franchisors affiliated with chains that forge strong partnerships are to achieve superior performance. The chain that promises a strong partnership is more have its choice of prospective franchise partners. Developing strong partnerships can use to recruit high quality franchisees. If franchisors with to experience the benefits of a strong franchise partnership, they must be willing to work on behalf of the partnership, perform roles that may extend beyond their traditional boundaries, and resolve their disagreement to the benefit of the partnership rather than to their own benefit. Strong partnerships require sacrifices on the part of both the franchisees and franchisors. However, These sacrifices have substantial payoffs in terms of franchisor performance as well as the performance of the relationship as a whole.

• The Journal of the Korea Contents Association
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• v.9 no.6
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• pp.390-398
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• 2009

This study researches on the two types. First, Researched into important perception, relationship maintenance perception, relationship improvement, relationship recognition between franchisor and franchisee, Seconds, Researched into correlation between franchisor and franchisee at function achievement and relationship maintenance, conflict resolve and relationship maintenance, function achievement and compare with competitor. If franchisor with to experience the benefits of a strong franchise partnership, they must be willing to work on behalf of the partnership, perform roles that may extend beyond their traditional boundaries, and resolve their disagreement to the benefit of the partnership rather than to their own benefit. Strong partnerships require sacrifices on the part of both the franchisees and franchisors. However, These sacrifices have substantial payoffs in terms of franchisor performance as well as the performance of the relationship as a whole.

• Culinary science and hospitality research
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• v.23 no.7
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• pp.1-10
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• 2017

This study proposed SNS big data analysis method of food service industry in the 4th industrial revolution. This study analyzed the keyword of the fourth industrial revolution by using Google trend. Based on the data posted on the SNS from January 1, 2016 to September 5, 2017 (1 year and 8 months) utilizing the "Social Metrics". Through the social insights, the related words related to cooking were analyzed and visualized about attributes, products, hobbies and leisure. As a result of the analysis, keywords were found such as cooking, entrepreneurship, franchise, restaurant, job search, Twitter, family, friends, menu, reaction, video, etc. As a theoretical implication of this study, we proposed how to utilize big data produced from various online materials for research on restaurant business, interpret atypical data as meaningful data and suggest the basic direction of field application. In order to utilize positioning of customers of restaurant companies in the future, this study suggests more detailed and in-depth consumer sentiment as a basic resource for marketing data development through various menu development and customers' perception change. In addition, this study provides marketing implications for the foodservice industry and how to use big data for the cooking industry in preparation for the fourth industrial revolution.

• Journal of Distribution Research
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• v.13 no.2
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• pp.1-27
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• 2008

In a power-asymmetry relationship like franchise system, a high dependent franchisee must often rely on its powerful partner. Therefore, in order to build up 'win-win' systems, therefore channel members should increase trust and commitment each other to enhance the relationship quality to sustain long-term cooperative relationships. First of all, to increase the relationship quality in franchise system, franchisor should increase franchisee's perception of the powerful franchisor's justice. The point of this research, I established basic hypotheses and comparative hypotheses to examine franchisor's behavior what franchisee expected which influences on franchisee's attitude and behavior in power - asymmetry relationship in franchise system. For the purpose of the empirical testing, managers of franchisee in the food service industry of Korea had been selected and analyzed, and major findings in this study as follow: First, the relational norm between franchisor and franchisee increased both distributive justice and procedural justice, especially relational norm had more effect on procedural justice than distributive justice. Second, distributive justice increased both economic commitment and social commitment while procedural justice just increased social commitment only but economic commitment. So, on the relational commitment, distributive justice was more important element than procedural justice. On the other hand, procedural justice had indirect effect on economic commitment through distributive and social commitment.

• Journal of Distribution Research
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• v.15 no.4
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• pp.87-117
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• 2010

'Entrepreneurship' which means spirit or activity seeking new value by challenging boldly the uncertainty is one of the most important concept in 21st century business environment. Franchise Industry taking a relationship with distribution industry also needs entrepreneurship. As franchise industry consists of small and medium enterprises, the entrepreneurship of franchisor's CEO is important for the franchisor's growth. The purpose of this study is to analyze the factors influencing on the entrepreneurship of franchisor's CEO, and the effect of the CEO's entrepreneurship on franchisor's performance. For this purpose, this study set CEO's psychological characteristics, market characteristics, and social-institutional characteristics as independent variables, CEO's entrepreneurship as parameter variables, and franchisor's performance as dependent variables. And to analyze this study model, this study collected questionnaires from 152 franchisors' CEOs, and uses SEM(Structural Equation Modeling). As the result, 'CEO's Entrepreneurship' influenced on both 'Franchisor's Financial Performance' and 'Franchisor's Non Financial Performance'. The results of this study provide some guides for franchisor's CEO and government policies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.2 no.2
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• pp.69-91
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• 2007

This study is aimed to analyze the impact of the perception of fairness on the relationship quality as a way to enhance the competitiveness through the establishment of a long-term relationship between food service franchisors and franchisees. An empirical analysis found that the more positively the fairness of franchisors is recognized, the more positive impact it has on the relationship quality. As both the distributive fairness and the procedural fairness, the two concepts of fairness, are perceived in a more positive manner, the trust and satisfaction over franchisers were found to be higher, with the conflict shown to be lower. Though both the distributive fairness and the procedural fairness showed a significant result, the procedural fairness, in particular, has a greater impact on the trust and satisfaction over franchisers than the distributive fairness. In addition, the quality of relationship between franchisor and franchisees has a positive impact on a long-term commitment. That is that as their trust and satisfaction over franchisors are higher with less conflict, franchisees will become more cooperative with their franchisors. The greatest impact on the long-term unity, among the factors that constitute the relationship quality, appeared to be trust. Accordingly, it is advisable persons in charge at franchisors place the greatest focus on fostering trust to establish a long-term relationship, inducing it in a positive direction. From such result, suggestions can be made in establishing a strategy for developing an appropriate relationship between food service franchisors and franchisees. Firstly, persons in charge at food service franchisors will have to induce the perception of franchisors' procedural fairness by franchisees in a positive direction in order to enhance the Quality of relationship with franchisees. Secondly, as an alternative strategy for forming a long-term relationship between franchisors and franchisees, the effort should be made to foster a greater trust in franchisors first. In many cases, franchisors currently focus more on their convenience in management than the development of systems to satisfy the franchisee needs. This contravenes with the essence of relationship marketing and thus, it can be said it is the most important of all that focus should be directed at trust and fairness in the effort toward a sustained relationship between franchisors and franchisees in the future.