• Title/Summary/Keyword: Franchise value chain

Search Result 9, Processing Time 0.021 seconds

Effects of Social Responsibility Activities of Franchise Chain Hotels on Customer Value and SNS Citizenship Behavior

  • Kim, Joon-Ho;Seok, Bong-Ihn;Lee, Ki-Tai;Yu, Jong-Pil
    • The Korean Journal of Franchise Management
    • /
    • v.8 no.2
    • /
    • pp.5-16
    • /
    • 2017
  • Purpose - This study empirically analyzes the effects of social responsibility activities (legal, charitable, environmental, ethical) of franchised chain hotels on customer value and SNS citizenship behavior. Furthermore, this study examines mediating role of customer value on SNS citizenship behavior. Design, data, and methodology - A survey was conducted on customers residing in Korea who had visited the franchised chain hotels in Seoul, Gyeonggi, and other regions, over a period of three months (from October 1, 2016 to December 31, 2016). There were a total of 426 valid samples, and the hypotheses were tested through hierarchical analysis. Results - First, among the social responsibility activities of franchised chain hotels, all four factors of legal, charitable, environmental, and ethical responsibilities had a statistically significant positive effect on customer value. Second, among the social responsibility activities of franchised chain hotels, all four factors had a statistically significant positive effect on SNS citizenship behavior. Third, customer value had a statistically significant positive effect on SNS citizenship behavior. Conclusions - Since social responsibility activities are utilized as a means of direct marketing, for creating and selling images of products and services of franchised chain hotels, it is necessary to become a fixed form of corporate culture.

Exploratory Study for Franchise Marketing Mix (프랜차이즈 마케팅믹스에 관한 탐색적 연구)

  • Lee, Jung-Won;Lee, Sung-Hoon;Lee, Sung-Hee
    • The Korean Journal of Franchise Management
    • /
    • v.6 no.2
    • /
    • pp.87-104
    • /
    • 2015
  • This study, based on theoretical and practical understanding of franchising, aims to conceptualize franchising in terms of marketing mix and proposes new paradigm of franchising. New schema of the franchise marketing mix involves both customer gap and franchisee gap by including customer and franchisee contacts and sets activities that include components of franchise system as the factor of marketing mix. So we could suggest the franchise marketing mix, '4F' by introducing conventional marketing mix concept into this assumption. The 4F schema consist of four sub-dimensions: 'Format', 'Fee & Royalty', 'Franchising Process', and 'Franchise Communication', which correspond to '4P'. In perspective of marketing mix, we could divide the franchise system into primary activity and support activity, then we also could categorize the fundamental activity into four-classification system, 4F schema. We expect that franchise marketing mix, 4F can be useful both theoretically and practically as it not only is not too different from the conventional marketing mix, but it also proposes franchise value chain by including unique characteristics and contents of the franchise system.

Success Factors of Paris Baguette's Bakery Franchise Business: Industry Competition and Core Competence Analysis

  • Jeong, Jaeseok;Jeong, Hannara;Ko, Kihyeon;Moon, Junghoon;Kang, Hyoung Goo
    • Asia Marketing Journal
    • /
    • v.15 no.2
    • /
    • pp.1-27
    • /
    • 2013
  • The main goal of this study is to examine the competition intensity in the Korean bakery franchise industry and to identify the core competencies of the industry's leading company, Paris Baguette. The frameworks of PEST analysis, Cross Impact analysis, a Five Forces Model, a Value Chain, and VRIO analysis. PEST and Cross Impact analysis were employed to investigate the industry's external environment, and the results indicated that 'increased attention on corporate's Creating Shared Value (CSV) activities' is the most influential factor among others. The analysis using the Five Forces Model found industry rivalry and substitutes were the greatest threats. Finally, the results of Value Chain and VRIO analysis identified four core competencies of Paris Baguette: its CEO's craftsmanship, e-procurement system, quality of dormant dough, and hub system. Multiple managerial implications are suggested for practitioners in the marketing area, especially in the saturated market environment.

  • PDF

A Study on the Relationships among Service Quality, Perceived Benefit, Value, and Behavioral Intention as Perceived by Franchise Snack Bar Restaurant Consumers - Application of Means-End Chain Theory - (수단-목적사슬이론을 적용한 프랜차이즈 분식점의 서비스 품질, 지각된 혜택, 가치 그리고 행동의도 간의 관계 분석)

  • Park, Hye-Bin;Lee, Soon-A;Yu, Seo Young
    • Culinary science and hospitality research
    • /
    • v.22 no.3
    • /
    • pp.183-197
    • /
    • 2016
  • This study was conducted to investigate the relationships among service quality, perceived benefit, perceived value and behavioral intention as perceived by franchise snack bars customers. The service quality of franchise snack bars' was tested in three sub-dimensions: environmental quality interaction quality, and outcome quality, which are based on Brady & Cronin's third-dimensional model. A total of 450 survey questionaires were distributed from March 9th to November 12th in 2015, of whi 411 questionnaires were deemed suitable for statistical analysis. SPSS 20.0 program was employed to conduct frequency analysis and reliability analysis, while AMOS 20.0 program was used to test the hypotheses. The results revealed that all three elements of service quality have a positive impact on perceived benefit. In particular, the outcome quality element had the greatest influence on perceived benefit. In sum, customers of a franchise snack bar considered outcome variables such as food taste, reasonable amount, and general quality of food as the most important factors to fulfill the benefit. This results suggest that Korean snack bar franchise companies need to consider improvements to outcome quality features, such as food quality. In addition, perceived benefit was a critical antecedent of perceived value, which was itself a significant predictor of behavioral intention. In conclusion, this study applied the means-end chain theory on franchise sank bar segmentation, as well as three dimension service quality model as developed by Brady and Cronin, and found results that will enable meaningful strategics for snack bar foodservice segmentation in pursuit of the development of efficient business plans, and that can be utilized as a theoretical data for future studies.

A Study on The Total Design based on the Relationship Between Image Identity and Space Design in Franchise Business (프랜차이즈 이미지 아이덴티티와 공간디자인의 관계성을 통한 통합디자인에 관한 연구)

  • Chun, Yun-Mi;Kim, Jong-Jin
    • Proceedings of the Korean Institute of Interior Design Conference
    • /
    • 2005.10a
    • /
    • pp.81-84
    • /
    • 2005
  • As a works of total design program for franchise, Visual Identity Will supply harmonious batch of images to their customers in various marketing environment of franchise members. so Visual Identity will explain a concept of space-design to their clients more clear than any others. and it will help a clients to accept fran-brand more easily. Because suppling a chain of images constantly under the 'VISUAL IDENTITY' is more efficient way to market. Space-design constituted with 'systematically-organized Visual Identity plan'.! It's very usefull one to rise brand value among some works of brand marketing

  • PDF

A Study on the Private Consumption Value of Franchise Companies: A Comparison of Foreign and Domestic Brand Consumers

  • PARK, So-Yeon;PARK, Hye-Yoon
    • Journal of Distribution Science
    • /
    • v.17 no.8
    • /
    • pp.15-24
    • /
    • 2019
  • Purpose - The relationship between personal consumption value and brand trust and brand attitude, brand trust and brand attitude, and brand loyalty was analyzed at a time when customers visiting domestic and foreign brands with mutual competition recognized the coffee shop as a new cultural space. Research design, data, and methodology - To examine these research models, samples were collected from 348 peoples who visited Coffee Franchise Companies during March to April, 2019. Results - The results of the study showed that Most of the assumptions about consumers' personal consumption values and brand trust, brand attitude and brand loyalty were adopted. This shows that there is a positive and organic relationship between these variables. Conclusions - Consumers' personal consumption values are found to have a positive impact on brand trust and brand attitudes. This means that the more positive an individual's consumption value is, the more confidence and likability a brand has. Brand trust has been shown to have a positive impact on brand attitudes. Brand attitudes and brand trust also have a positive impact on brand loyalty. This means efficient management of brand trust and brand attitudes in chain service companies is necessary.

Imitation as a Viable Strategy: The Case of Ediya in Korean Coffee Franchise Industry (모방전략의 유용성에 관한 연구: 이디야 사례)

  • Choi, Jin-Ah
    • Journal of Distribution Science
    • /
    • v.15 no.6
    • /
    • pp.47-56
    • /
    • 2017
  • Purpose - The purpose of this study is to examine the viability of imitation strategy. Imitation strategy is one of the strategic options that a late mover can choose, and by selecting the strategy, the company imitates key elements of the business model of first movers, and modifies them to suit its conditions. The author attempted to explain how the elements of first mover's business models were creatively adapted to suit the conditions of late movers so that they can secure market position face-to-face market leaders. Research design, data, and methodology - For the purpose of the study, Korean coffee franchise industry was selected to compare the strategies of first and late movers and to discuss imitation strategy in detail. The author conducted in-depth case study of first mover and business model innovator Starbucks and Ediya Coffee, one of their imitators. The paper examines how Ediya has imitated and modified the business model of Starbucks to secure its unique competitive position in domestic market by using value chain and generic strategy analysis. Results - Starbucks and Ediya were compared in terms of their interior design, the price level of beverages, the variety of side dishes, and shop locations. Starbucks have invested interior design heavily to shops, offered diverse beverages and side dishes with relatively high price, the shops are located in central areas, whereas Ediya has concentrated on achieving cost leadership in all value activities as maintaining the quality of key products. Ediya succeeded in achieving best-provider strategy, in which it enjoys both cost leadership and differentiation advantages, largely by the strategic alliance with the biggest coffee manufacturer, Dongsuh Foods in Korea. Conclusions - Though Ediya is the imitator of Starbucks, it has modified Starbucks business models and succeeded in providing the 'third place' experience for budget-minded customers. Ediya has also succeeded in benefiting its franchisees by lowering costs and simplifying the various tasks of coffee shop management. Due to these factors, Ediya could become one of the largest number shops as the coffee franchise in Korea.

Caffe Bene: Creating Values for Customers

  • Ahn, Kwangho;Yoo, Changjo;Kim, Youngchan
    • Asia Marketing Journal
    • /
    • v.14 no.3
    • /
    • pp.185-197
    • /
    • 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.

  • PDF

An Application of GIS Technique to Analyze the Location of Fastfood Stores : The Case of Kangnam-Gu , Seoul (GIS 기법을 활용한 패스트푸드점의 입지분석에 관한 연구 - 서울시 강남구를 중심으로)

  • 이희연;이정미
    • Spatial Information Research
    • /
    • v.4 no.2
    • /
    • pp.131-146
    • /
    • 1996
  • The purpose of this study is to extract the main locational factors to affect the location of fastfood stores in Kangnam -Gu, Seoul by using Geographic Information Systems. The Franchise system, which came to be employed in full scale since 1990, now enjoying the booming period, especially fast food industry. The procedure of this research has four steps. First, the spatial distribution of fastfood chain stores in Seoul is analyzed by the land use and road map. Second, the spatial variations of fastfood stores in dong districts of Seoul is explained by multiple regression analysis. Third, the main locational factors to affect the location of fast food stores in Kangnam -Gu are extracted by demand and supply sides using GIS technologies. Finally, the potentiallocational zones where are selected by extracted locational factors are compared with the actual distribution of f astf ood stores in Kangnam - Gu. In terms of demand side, the main locational factors include commercial and service facilities, sub¬ways and bus stops which have a lot of pedestrians, and large apartment districts that have high popu¬lation densities. In terms of supply sides, the main locational factors include land use types and land value, accessibility. After fast food chain stores of Kangnam -Gu are overlaid final potentiallocational zones extracted by demand and supply sides of locational factors, it can be identified that over 80 % of fastfood stores are located in the potentiallocational zone. In conclusion, this study shows that spatial analysis functions may potentially be improved using GIS technologies. However there are still difficulties for the locational analysis for service industries to col¬lect appropriate data in terms of computerized base maps as well as consumer behavior and store characteristics itself.

  • PDF