• The Korean Journal of Franchise Management
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• v.9 no.3
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• pp.19-29
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• 2018

Purpose - Due to the increase in coffee consumption and competition, domestic coffee franchise companies are currently entering the overseas market. Therefore, coffee franchise companies are pursuing a variety of marketing strategies to meet customer needs and gain competitive advantage in overseas markets. From this perspective, overseas franchise companies need to ensure that their servicescapes meet the needs of their overseas customers. For these purposes, the study is to identify the impact servicescapes on customer satisfaction and customer loyalty focused on Global Coffee Franchise Company "C", which extended its business worldwide in Mongolia. Research design, data, and methodology - The data were collected from customers who had visited the stores of 'C' company in Ulaanbaatar, Mongolia. 435 valid questionnaires collected through online survey coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 24 and SmartPLS 3.0. Result - Firstly, seating comfort, facility aesthetics, and cleanliness, ambient conditions among servicescapes influenced customer satisfaction. Secondly, servicescapes didn't affect the loyalty directly. Third, customer satisfaction had positive effect on loyalty. Fourthly, cleanliness which was ranked lower in Korea had a great effect on customer satisfaction in Mongolia. Fifthly, IPMA(Importance-performance map analysis) shows that the importance of servicescapes is higher for women than for men, and facility aesthetics for female and cleanliness is the most important for male. Conclusions - The results of this study show that there is a positive (+) effect on customer satisfaction in order of cleanliness, ambient conditions, aesthetics, and seating comfort. Therefore, franchise companies considering or advancing into Mongolia should consider importance in order of cleanliness, ambient conditions and aesthetics when entering Mongolia market. For example, franchise managers should select Monday as a "clean day," and all merchants should spend all of their open hours and keep their stores clean in accordance with the head office manual. In addition, franchise managers need to hire a VMD (visual merchandising) experts to build up a physical environment that will effectively highlight the space-specific display of the store so that Mongolian local customers can have a satisfactory climate and aesthetics. And, the IMPA analysis between servicescapes and customer satisfaction shows that women are more susceptible to servicescapes than men. Especially, in the case of women, the importance of esthetics is high, but the performance is low. Thus, if the aesthetics are actively improved, customer satisfaction can be effectively increased.

• Journal of Distribution Science
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• v.13 no.5
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• pp.33-44
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• 2015

Purpose - This study examined the Italian eyeglass industry and the status of the franchise market. Luxottica's global growth strategy was analyzed to provide insight into the strategy and development of the Italian eyeglass industry and its franchise business. Research design, data, methodology - Luxottica's annual report, public media material, and website were examined, in addition to data from professional institutions. For the domestic eyeglass industry and franchise business, data from professional organizations, franchise information disclosure documents of the Fair Trading Commission, media materials, and related papers were investigated. Results - The success factor turned out to be securing a global wholesaler with retailers in overseas markets. This successful strategy was based on the strong entrepreneurial spirit of the founder, innovative craftsmanship, and an excellent corporate culture including corporate social responsibility (CSR). Conclusions - Considering the current environment, for Luxottica to be a leading global company, it had to review and adopt a successful vertical integration strategy, from R&D to distribution, M&A of overseas wholesalers and retailers, creative design and technical development, and sustainable cultural development

• The Korean Journal of Franchise Management
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• v.14 no.4
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• pp.1-16
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• 2023

Purpose: Previous studies show that perceived CSR motives have a significant impact on company evaluations. However, consumer responses to CSR motives vary depending on CSR motives. From this perspective, this study investigates the impact of CSR motives on consumers' responses in the context of food and beverage franchise companies using a scenario. Research design, data, and methodology: For achieving the purposes of the study, an example of a domestic food and beverage franchise company actively carrying out CSR activities was presented. Data was collected from 304 respondents aged 20 or older who were aware of CSR activities. The respondents answered the questionnaire after reading the scenario. The data was analyzed with SPSS 28.0 and SmartPLS 4.0 program. Result: Values-driven motive and strategic motive influence authenticity, while stakeholder-driven motive and egoistic motive did not influence authenticity. Values-driven motive influences on attitude, while stakeholder-driven motive, strategic motive and egoistic motive didn't. Lastly, authenticity influences attitude. Conclusions: Companies need to be aware that consumers may infer different motives for their CSR activities, and pay close attention to consumers' perceived motives from the planning stage of CSR activities. In particular, companies should focus on the values-driven motive and the strategic motive when planning CSR activities.

• The Korean Journal of Franchise Management
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• v.13 no.4
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• pp.1-12
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• 2022

Purpose: In 2020, the franchise industry accomplished a significant growth compared to the previous year, as the number of franchise companies increased by 9.0% while the number of franchise brands increased by 12.5%. Despite growth in size, the Korean franchise industry underwent many negative incidents, such as franchise ownership sales to private equity funds, that led to deterioration of businesses. From this point of view, this study aims to make various proposals to help policy makers develop franchise industry policies by analyzing trends of the current and previous presidential administrations' franchise policies and regulations using newspaper articles. Research design, data and methodology: A total of 7,439 articles registered in Naver API from February 25, 2013 to November 29, 2021 were extracted. Among them, 34 unrelated video articles were deleted, and a total of 7,405 articles from both administrations were used for analysis. The R package was used for word frequency analysis, word clouding, word correlation analysis, and LDA (Latent Dirichlet Allocation) topic modeling. Results: The keyword frequency analysis shows that the most frequently mentioned keywords during the previous administration include 'no-brand', 'major company', 'bill', 'business field', and 'SMEs', and those mentioned during the current administration include 'industry' and 'policy'. As a result of LDA topic modeling, 9 topics such as 'global startups' and 'job creation' from the previous administration, and 10 topics such as 'franchise business' and 'distribution industry' from the current administration were derived. The results of LDAvis showed that the previous administration operated a policy based on mutual growth of large and small businesses rather than hostile regulations in the franchise business, whereas the current administration extended the regulation related to franchise business to the employment sector. Conclusions: The analysis of past two administrations' franchise policy, it can be suggested that franchisors and franchisees may complement each other in developing the Fair Transactions in Franchise Business Act and achieving balanced growth. Moreover, political support is needed for sound development of franchisors. Limitations and future research suggestions are presented at the end of this study.

• The Korean Journal of Franchise Management
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• v.5 no.2
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• pp.51-67
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• 2014

Looking at the case of countries or companies, the success and failure can be found a certain repetitive 'Pattern'. In this paper, global franchise company factors determine the success or failure of the Burger King on the market dynamism perspective, and looked to discuss its implications. The success or failure of a company in a country like pattern of the growth and erosion and stagnation and decline, and the pursuit of sustainable growth through relentless improvement reactivated. Burger King has more to strengthen brand equity oriented by the world's best restaurant through the development of aggressive marketing activities in the global market to regain its former glory.

• 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 2^nd 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.

• The Korean Journal of Franchise Management
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• v.8 no.4
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• pp.33-43
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• 2017

Purpose - Previous studies about corporate image generally explore how corporate image affects a company's effectiveness from the consumer view. However this study attempts to explore the impacts of corporate image (reliability, friendly, corporate social responsibility, and innovation) on employees' altruistic behaviors in the franchise industry context. This study also examine whether organizational trust and affective commitment play a mediating role in the relationship between corporate image and employees' altruistic behaviors. The authors developed several hypotheses to achieve these purposes. Research design, data, and methodology - The data were collected from employees in food-service franchise companies located in Seoul, Korea. Among a total of 363 questionnaires distributed, 294(response rate of 81%) questionnaires were returned. After excluding 18 invalid respondent questionnaires, 276 valid questionnaires(response rate of 76%) were coded and analyzed using frequency, confirmatory factor analysis, correlations analysis, and structural equation modeling with SPSS 21 and SmartPLS 3.0. Result - The findings of the study are as follows: First, friendly, CSR, and innovation had positive effects on organizational trust, but reliability did not have a significant effect on organizational trust. Second, reliability and friendly of corporate image had positive effects on affective commitment, but CSR and innovation did have a significant effect on affective commitment. Third, organizational trust and affective commitment had positive effects on employees' altruistic behaviors. Conclusions - The aim of this study is to investigate the franchise corporate image as a significant influencing factor of employees' altruistic behaviors. The data were collected from only employees from franchising companies. The findings might vary from position to position. Future studies need to collect and compare data from managers. Future studies need to consider other variables that affect employees' altruistic behaviors. For example, leadership and market orientation might influence employees' attitude and behaviors. Also, future research should include other variables and it may have limitations in sample representative because of sampling franchise corporate in Seoul. Future studies will include franchise corporate all over the country. Future studies can also consider other variables (e.g., job performance and turnover intentions) to measure employee performance at the level of individuals and identify the impact of employee performance on business performance at the level of corporate.

• Journal of the Korean Society of Food Culture
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• v.24 no.3
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• pp.286-294
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• 2009

The purpose of this study was to determine whether foodservice brand language localization affects consumer attitudes in terms of similar brand image recognition with an original brand. Many global foodservice companies have tried to modify their own brand identity according to local situations in order to attract more consumers. According to this study's results, consumers who similarly recognized both the original brand image and localization brand image tended to have greater purchase intention than those who did not recognize them similarly. In addition, when the original brand identity was changed to the local language, consumers more similarly conceived the original brand image and localization. And for local store marketing, foodservice companies should have a thorough marketing research plan since there can be difference results according to brand name recognition gaps or demographic characteristics. Original brand image similarity recognition by consumers affected their attitudes. In other words, the group that similarly recognized both the original brand company image and the localization brand company image tended to have greater purchase intention. Because brand language plays an important role in consumer attitudes with respect to recognizing a brand and distinguishing another brand, this study suggests that franchise foodservice companies have a local store marketing plan.

• Journal of the Economic Geographical Society of Korea
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• v.26 no.2
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• pp.110-122
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• 2023

This study examined the characteristics of the Mongolian retail market through the case of CU, a Korean retail company that successfully entered Mongolia. This study provides useful implications for Korean companies planning to enter Mongolia. Despite its proximity to Korea, Mongolia is a difficult environment for the retail market because of its small domestic market, landlocked location, inefficient logistics infrastructure, and lack of laws and regulations related to the retail industry. On the other hand, CU has successfully settled in the Mongolian market through master franchise agreements with a local company and by promoting a glocalization strategy. Mongolia CU is not just a convenience store but a place where Mongolians can enjoy global culture, and it is being reorganized as a new space where Mongolians can satisfy their consumption needs.

• Journal of Global Scholars of Marketing Science
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• v.19 no.2
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• pp.40-52
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• 2009

Franchising is one of the fastest growing types of business. It is already popular and well-known in the U.S., and has been growing in many other countries including Korea. Furthermore, many Korean franchising companies have expanded their business overseas actively. According to the data by the Ministry of Industry and Resource, 82 companies out of a sample of 500 franchising companies are already operating in many foreign countries and 48% of them have started their foreign business since 2006. This clearly indicates the fast growing current trend of foreign operation by Korean franchising companies. In spite of the fast growing trend of foreign expansion in the industry, academic research on internationalization of franchising companies is extremely difficult to find. Accordingly, academic research on the issue is necessary and urgent in Korea. Among the various research questions on internationalization of franchising business, this study intends to investigate the difference in organizational factors between the franchising companies doing foreign operation and those doing business only domestically. More specifically, this research has the following purposes. First, considering the lack of theoretical basis of previous studies, resource-based theory and agency theory are employed as the theoretical bases. Second, this study explains the difference in internationalization based on organizational factors such as company size, history and growth rate. Third, the five hypotheses regarding the difference in organizational factors are presented and tested empirically, which is the first attempt in the area of this topic. Finally, the study attempts to clarify the conflicting implications among theories regarding some organizational factos such as growth rate. As the theoretical background, resource-based theory and agency theory are discussed. According to resource-based theory, a firm can grow continuously when it has competence and resource, and also the ability to develop them. The competence and resource can include capital, human resource, management skill, market information, ability to manage risk, etc. Meanwhile, agency theory views the relationship between franchisor and franchisee as an agency relationship. In agency theory, bonding capability and monitoring capability are the two key factors which promote internationalization of franchising companies. Based on the two theories, a conceptual model is designed. The model consists of two groups of variables. One is organizational factors including size, history, growth rate, price bonding and geographic dispersion. The other is whether a franchising company is operating overseas or not. We developed the following five research hypotheses basically describing the relationship between organizational factors and internationalization of franchising companies. H1: The size of franchising companies operating overseas is larger than that of franchising companies operating domestically. H2: The history of franchising companies operating overseas is longer than that of franchising companies operating domestically. H3: The growth rate of franchising companies operating overseas is higher than that of franchising companies operating domestically. H4: The price bonding of franchising companies operating overseas is higher than that of franchising companies operating domestically. H5: The geographic dispersion of franchising companies operating overseas is wider than that of franchising companies operating domestically. Data for the analyses are obtained from 2005 Korea Franchise Survey data co-generated by Ministry of Industry and Resource, GS1 Korea, and Korea Franchise Association. Out of 2,804 population companies, 2,489 companies are excluded for various reasons and 315 companies are selected as the final sample. Prior to hypotheses tests, validity and reliability of the measures of size, history, growth rate and price bonding are examined for further analyses. Geographic dispersion is not validated since it is measured using nominal data. A series of independent sample T-tests is used to find out whether there exists any significant difference between the companies internationalized and those operating only domestically for each organizational factor. Among the five factors, size and geographic dispersion show significant difference, growth rate and price bonding do not reveal any difference and, finally, history factor shows conflicting results in the difference depending on how to measure it.