• 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.

• Journal of Distribution Science
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• v.12 no.8
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• pp.123-132
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• 2014

Purpose - Recently, Korean companies have been struggling to perform well in the larger smartphone market in China, which is regarded as a blue ocean area. First, it is very important to accurately understand the Chinese consumers, who have a different consumption culture and value system from the Korean culture and system. This would help to identify priorities for the Chinese market. Further, considering the smartphone industry, where technological change is rapid, Korean companies will need to take prompt measures about market trends in order to establish strong competitiveness. Consequently, this study focused on analyzing the relationship between the variables of consumption value, satisfaction, and loyalty in the Chinese smartphone market. The principal dimensions of consumption value, which smartphones have, was analyzed, and the influence on satisfaction was identified. Moreover, the relationship among the variables of satisfaction, attitudinal loyalty, and behavioral loyalty was empirically analyzed. Research design, data, and methodology - This study examined the relationships between various consumption values (functional value, emotional value, social value, epistemic value, and economic value), along with satisfaction and loyalty. The data were collected through a questionnaire survey that was circulated to 310 customers who were users of smartphones in Chingdao and Yeontae regions in China. The survey was conducted from June 23 to August 4, 2013. A total of 301 responses to the questionnaires were collected and used for the data analysis. Moreover, a path analysis based on Lisrel 8.54 was used for the hypothesis test. Results - The variables of functional value, emotional value, social value, and epistemic value were revealed to have positive effects on satisfaction related to smartphone usage. However, the variables of monetary cost and psychological cost were not found to have negative effects on satisfaction related to smartphone usage. Moreover, satisfaction positively influenced attitudinal loyalty related to smartphone usage, but did not have a significant influence on behavioral loyalty related to smartphone usage. Specifically, satisfaction is essential, but not a sufficient condition for building behavioral loyalty in relation to smartphone usage. In addition, attitudinal loyalty positively influenced behavioral loyalty in relation to smartphone usage. Conclusions - First, this study shows that functional value, emotional value, social value, and epistemic value in relation to smartphone usage are important for marketing in the Chinese smartphone market. Particularly, functional value and emotional value play pre-eminent roles as regards customer loyalty in the use of smartphones. Second, the results of this study reveal that the variables of monetary cost and psychological cost are not important to the Chinese consumers. Specifically, the smartphone price and cognitive effort are not perceived as value barriers. Third, satisfaction did not guarantee behavioral loyalty in relation to smartphone usage, and the strategic approach for improving the repurchase and referral action in relation to smartphones based on solid attitudinal loyalty would be desirable and should be the focus of the marketing activities of Korean smartphone companies.

• Journal of Distribution Science
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• v.17 no.1
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• pp.95-103
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• 2019

Purpose - Recently, many theoretical researches suggested that arts-based marketing strategies provide many benefits for marketers to differentiate their brand or product from others. However, there has been little research focusing on consumers' response types from artwork (artifact-emotion appraisal; A-emotion vs. represented world-emotion appraisal; R-emotion). In order to deepen our understanding of arts-based marketing strategies, we addressed a research question related to how artwork-provoked consumers' emotional response can impact the perceived evaluation of art infused products. Research design, data, and methodology - To answer the research question, we conducted a pretest and one experimental study. The experimental study was 2(art-provoked response type: A-emotion vs. R-emotion) by 2(emotional valence: positive vs. negative) by 2(produce type: hedonic vs. utilitarian) mixed design. The art-provoked response type and emotional valence were between-subject design and product type was within subject design. For the experimental study, 108 undergraduate students and graduate students were randomly assigned to one of 4 conditions (A-emotion-positive, A-emotion-negative, R-emotion-positive, R-emotion-negative). Participants reported their evaluation of art-infused product and other items for a manipulation check. Results - The major results from the experimental study are as follow. First, participant's art-provoked response type influenced evaluation of art infused products differently. More specifically, the effect of emotional valence of artwork on product evaluation was not significant in A-emotion. However, in R-emotion, relative to the product with artwork provoked negative emotional valence, the product with artwork provoked positive emotional valence elicited significantly higher product evaluation. Second, product type also affected the art infusion effect significantly. Particularly, the differential effect of participant's art-provoked response type on product evaluation revealed when it is for a utilitarian product, but not for a hedonic product. Conclusions - Theoretically, the findings of this study expand academic research on art infusion. And the findings also can be extrapolated to generate lots of implication for marketers. In sum, when they plan art marketing strategies to build the favorable relationship with their customers, they need to consider customers' response type of an infused art and product type.

• Journal of Distribution Science
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• v.12 no.2
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• pp.39-47
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• 2014

Purpose - The ultimate goal of a franchise system comes from its win-win strategy. Agency theory uses goal incongruity to examine complex contracting problems between buyers and suppliers. Goal incongruity within a contractual relationship can be defined as the agent's desire not to cooperate. It is the degree to which the contractual terms do not satisfy the agent's goals. The greater the goal incongruity between the agent and the contract, the more likely it is that the agent will meet the terms of the contract. Thus, goal incongruity between buyers and suppliers has close relationships with both behavioral and financial performance. This study tries to examine these relationships in the franchise context using a model including related variables, such as regulatory foci, financial performance, and opportunism, to explain the reasons that not all franchisees perform their best. In particular, the study examines the effects of goal incongruity on regulatory focus, and the effects of regulatory focus on performance and opportunism. In short, the objective is to determine goal incongruity's effect on regulatory foci, and the effect of regulatory focus on performance and opportunism. Research design, data, and methodology - This study used data collected from the franchisee managers of 104 franchisors in South Korea. The franchisors include more than 10 franchisees, the majority of whom have been in business for more than five years. The study also surveyed 104 franchisees, matched with their franchisors for the sake of a dyadic approach. The study used regression analysis to test the hypotheses. Results - H1 and H2 predicted that goal incongruity would decrease promotion focus and increase prevention focus. Supporting H1, the result indicates goal incongruity had a positive effect on promotion focus. However, H2 was not supported. Goal incongruity had no significant effect on prevention focus (β = -.375, t = -4.331 and β = -.145, t = -1.950, respectively). H3 and H4 predicted that promotion focus would increase financial performance and decrease opportunism. Supporting these hypotheses, the results indicate that promotion focus had a positive effect on financial performance and a negative effect on opportunism (β = .771, t = 7.899 and β = -.765, t = -6.778, respectively). H5 and H6 predicted that prevention focus would decrease financial performance and increase opportunism. However, the results do not support these hypotheses. The results indicate that prevention focus had no effects on opportunism or financial performance (β = -.130, t = -1.070 and β = .090, t = .641, respectively). Overall, the evidence generally supported the hypotheses. Conclusion - Goal incongruity between a franchisor and a franchisee increases the franchisee's financial performance and opportunism, and the relationship is mediated by promotion focus. Interestingly, however, prevention focus has no mediating effect between goal incongruity and performance. Even though no significant relation exists between goal incongruity and prevention focus, the results have two implications. First, decreasing goal incongruity can improve financial performance and suppress franchisee opportunism. Second, the relationship between goal incongruity and performance affects promotion-focused franchisees.

• Journal of Distribution Science
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• v.15 no.5
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• pp.53-64
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• 2017

Purpose - This study focuses on use intention of mobile travel Apps by Chinese tourists visiting Korea based on UTAUT model, ISS model and ITM model. And the corresponding market promotion schemes are proposed for operators of mobile travel Apps by the research results. Research design, data, and methodology - After collecting 326 respondents in China with cross-sectional questionnaires, this study begins the empirical research with users of mobile travel Apps, and analyzes data with IBM SPSS 23.0 and IBM AMOS 23.0. Results - The results of this study include the following aspects: firstly, the System quality and Information quality are accepted for hypotheses of Satisfaction and Performance expectancy. Secondly, the Personal Propensity to Trust and Firm Reputation are accepted for Initial Trust hypothesis, and the hypotheses of Firm Reputation and Initial Trust are accepted for Use Intention. Thirdly, the Performance expectancy, Effort expectancy, Social influence are accepted for Use Intention hypothesis. Conclusions - With the increase of tourists visiting Korea, it can be predicted that the needs visiting Korea will be increased persistently for Chinese - this trend brings about the increase of the Chinese travel. First, information quality greatly influences satisfaction and performance expectancy. The research result shows that, the higher the mobile traveling App's information quality is, the higher the satisfaction and performance expectancy will be. Therefore, operators of mobile traveling App should have in-depth investigations towards users, to know the latter's real demand to the information quality and then provide corresponding services. Second, performance expectancy and effort expectancy greatly influence users' intention. Therefore, mobile traveling App operators should improve Apps' convenience and efficiency and, in doing so, find an effective method for market expansion. Third, social influence greatly affects users' intention. The result shows that mobile traveling App operators should pay attention to the influence of mass media and friends' recommendation on users, thereby it is necessary to improve advertisement activities. Fourth, initial trust also influences users' intention. The result shows that initial trust is a key element inducing users to generate use intention. Therefore, mobile traveling Apps operators should make efforts to catch elements that influence users' initial trust.

• Journal of Distribution Science
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• v.17 no.3
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• pp.85-95
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• 2019

Purpose - The existing marketing studies using Social Network Analysis have assumed that network structure variables are time-invariant. However, a node's network position can fluctuate considerably over time and the node's network structure can be changed dynamically. Hence, if such a dynamic structural network characteristics are not specified for virtual goods purchase model, estimated parameters can be biased. In this paper, by comparing a time-invariant network structure specification model(base model) and time-varying network specification model(proposed model), the authors intend to prove whether the proposed model is superior to the base model. In addition, the authors also intend to investigate whether coefficients of network structure variables are random over time. Research design, data, and methodology - The data of this study are obtained from a Korean social network provider. The authors construct a monthly panel data by calculating the raw data. To fit the panel data, the authors derive random effects panel tobit model and multi-level mixed effects model. Results - First, the proposed model is better than that of the base model in terms of performance. Second, except for constraint, multi-level mixed effects models with random coefficient of every network structure variable(in-degree, out-degree, in-closeness centrality, out-closeness centrality, clustering coefficient) perform better than not random coefficient specification model. Conclusion - The size and importance of virtual goods market has been dramatically increasing. Notwithstanding such a strategic importance of virtual goods, there is little research on social influential factors which impact the intention of virtual good purchase. Even studies which investigated social influence factors have assumed that social network structure variables are time-invariant. However, the authors show that network structure variables are time-variant and coefficients of network structure variables are random over time. Thus, virtual goods purchase model with dynamic network structure variables performs better than that with static network structure model. Hence, if marketing practitioners intend to use social influences to sell virtual goods in social media, they had better consider time-varying social influences of network members. In addition, this study can be also differentiated from other related researches using survey data in that this study deals with actual field data.

• Journal of Distribution Science
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• v.14 no.9
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• pp.85-94
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• 2016

Purpose - Recently, Mobile technologies and devices including smart phones and tablets have increased the possibility of communicating with other people and sharing personal information without time and space restriction. In order to realize the market potential related to mobile technologies, a large number of internet services have been incorporated into mobile platforms. Especially, The number of MIM(Mobile Instant Messenger) users has been increasing dramatically and services using MIM platform also have diversified. In spite of drastic growth in markets related to MIM, there is little empirical research on MIM and users' behaviors. This study designed to examine the structural relationships among belongingness, loneliness, self-disclosure intention, system quality, and self-disclosure behavior in context of MIM. Research design, data, and methodology - Three hypotheses were about the relationship among belongingness, loneliness and self-disclosure intention. The other two hypotheses were about the moderating effect of system quality in the causal relationship between self-disclosure intention and self-disclosure behavior. The data was analyzed by structural equation modeling. Research data were obtained from 330 undergraduate students who were KakaoTalk users and total 314 valid questionnaires were used in the final analysis. Results - The results from this study are as follow. First, the belongingness and the loneliness had a significant impact on self-disclosure intention in MIM. Second, the self-disclosure intention in MIM also had a positive impact on the self-disclosure behavior. Lastly, there is a moderating effect of the system quality in the relationship between the self-disclosure intention and self-disclosure behavior in MIM. Specifically, the higher system quality level was perceived, the positive effect of the self-disclosure intention in MIM on the self-disclosure behavior was greater. Conclusions - Based on the results from this study, academic and practical implications can be drawn. First, the study extends the scope of research about SNS through focusing on MIM to be classified by closed type SNS and identifies the relationship between emotion, behavioral intention and behaviors in MIM. Second, this study provides strategic guidelines to increase the efficiency for promotion activity. Limitations for the study also should be discussed.

• Journal of Distribution Science
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• v.13 no.1
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• pp.71-81
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• 2015

Purpose - This study aims to examine the effect of audience attitude toward product placement, or PPL, on product attitude and purchase intention. PPL has increasingly been prevailing in TV dramas since the revision of the Broadcasting Act in January 2010, and it is quite widespread in today's society. Therefore, this study intends to investigate how the audience would take a particular attitude toward PPL in TV dramas and how their attitude would affect their product attitude and purchase intention. Research design, data, and methodology - The sample for the current study was drawn from college students in Seoul in December 2013, as the main targets of the products and brands that were advertised by PPL are young people. The questionnaire for this study comprised nine parts, such as the knowledge of PPL, experience of PPL, TV drama watching time, impulsive buying propensity, celebrity imitating buying propensity, attitude toward PPL, attitude toward product, purchase intention, and demographic characteristics. The questionnaire items were measured by 5-point Likert scales. Whether the demographic characteristics and propensity to consume would affect PPL attitude was analyzed and how the PPL attitude would affect purchase intention through product attitude was analyzed as well. To analyze the relationship between variables, structural equation modeling analysis was performed with Amos 18.0. Results - The major findings of the study were as follows. First, whether the demographic characteristics and propensity to consume would affect PPL attitude was analyzed, and it is found that out of the demographic characteristics, only gender and knowledge of PPL exerted an influence on PPL attitude. In addition, celebrity-imitating buying propensity had an impact on PPL attitude. Second, whether PPL attitude would affect purchase intention through product attitude was analyzed by structural equation modeling. Consequently, it is found that PPL attitude impacted purchase intention through product attitude. Conclusions - The findings of the study had the following implications. First, in theoretical aspects, previous studies have proven only that attitude toward PPL influenced attitude toward product and purchase intention separately; however, the current study has investigated the mediated role of attitudes toward PPL. Second, regarding the practical aspects, as PPL attitude exercised an effect on purchase intention as well as product attitude, PPL should be utilized in a manner to stimulate the audience to take a positive attitude to it. Finally, gender, PPL knowledge, and celebrity-imitating buying orientation were identified as influential factors for PPL attitude. Specifically, female consumers showed a lower attitude toward PPL than males, and the consumers who have no knowledge showed a lower attitude toward PPL. The consumers who have celebrity imitating buying propensity expressed a higher attitude toward PPL. These factors should consequently be taken into account when PPL is planned and conducted. The current study has limitations such as the sample object, non- experimental method, and media biases. Therefore, future research should be conducted to address these limitations.

• Journal of Distribution Science
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• v.11 no.8
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• pp.15-23
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• 2013

Purpose - This is a case study aimed at finding a solution for improving the pallet loading efficiency in the process of delivering products through a transshipment using the T-11 and T-12 pallet systems. The study proposes a solution by demonstrating the case of a certain manufacturer A, who aims to reduce the logistics cost by using packaging sizes that are commonly applicable and can improve the compatibility between the T-11 pallet system, designated as the standard pallet in Korea, and the T-12 pallet system, which is commonly used in other foreign countries. The use of common sizes increases compatibility among the two systems and reduces both logistics and environmental costs. Thus, this case study calculates the quantitative benefits of applying common packaging sizes to improve the compatibility between the T-11 and T-12 pallet systems. These systems are considered to be the most important and widely used transportation systems in the global logistics industry. Research design, data, and methodology - This study examined manufacturer A's representative product and delivery system and assessed how manufacturer A was affected by the use of incompatible packaging sizes in the T-11 (1100 mm×1100 mm) and T-12 (1200mm×1000 mm) pallet systems, which were specified in the KS T 1002 standard. In addition, this study analyzed the impact of these packaging sizes on A's logistics cost. The TOPS program (Total Packaging System) was used to simulate pallet loading efficiency,and the main parameter studied was volume, as calculated from length, width, and height. Results - When the sizes of secondary packaging were not compatible across the T-11 and T-12 pallet systems, a reduction in loading efficiency was observed, leading to an increase in logistics cost during transshipment. Such low loading efficiencies led to a further loss of efficiency in transportation, storage and unloading. This may have a possible environmental impact with high social expenses, such as increased CO₂ emissions. Hence, this study proposed that the KS T 1002 standard be amended to include 21 packaging sizes, including 7 sizes of the 600 mm×500 mm category, which are compatible with both the T-11 and T-12 pallet systems. Conclusions - This study found that the 69 standard sizes under the T-11 pallet system and the 40 standard sizes under the T-12 system in the KS T 1002 standard can be simplified and reduced to 21 mutually compatible packaging sizes, enabling logistics standardization and reducing national-level logistics costs. If the government pays attention to this study and considers the standardization of common sizes for the T-11 and T-12 pallet systems and amends the KS T 1002 standard, this study will deliver practical value to the global logistics industry, apart from being of academic significance.

• Journal of Distribution Science
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• v.16 no.12
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• pp.105-113
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• 2018

Purpose - This research is intended to suggest ways to enhance customers' satisfaction with service recovery. For this purpose, this study investigated the relationships among perceived justice (distributive, procedural, interactional justice) of service recovery efforts, perceived authenticity of service recovery efforts, the intention to follow advice, and the satisfaction with service recovery. Research design, data, and methodology - This research developed a structural equation model in which the perceived justice (distributive, procedural, interactional justice) and the perceived authenticity are predictors, the satisfaction with service recovery is a dependent variable, and the intention to follow advice is a moderator between the perceived justice (distributive, procedural, interactional justice) and the satisfaction with service recovery. Data were collected from visitors of fast food restaurants in Seoul, Gyeonggi province, and Kangwon province. A total of 330 questionnaires were distributed and 295 responses were collected indicating a response rate of 89.3%. After deleting data having missing value, 288 samples were used for analysis. SPSS 21.0 and AMOS 21.0 were used to test the reliability, validity, model fit, and hypotheses. Results - Empirical results showed that perceived justice, perceived distributive justice, and perceived authenticity had a positive influence on the satisfaction with service recovery. These results indicated that the more highly customers perceived the justice, distributive justice and the authenticity of service recovery efforts, the more they were satisfied with service recovery. And these influences were moderated by the intention to follow advice. Specifically, influences of the perceived justice, the perceived distributive justice, and the perceived authenticity on the satisfaction with service recovery were bigger for people with high intention to follow advice than people with low intention to follow advice. Conclusions - This research contributed to the service recovery literature by showing how perceived justice (distributive, procedural, interactional justice) and perceived authenticity influence satisfaction with service recovery. Moreover, current study introduced the intention to follow advice as moderator of this influence and revealed the moderation role of the intention to follow advice between the perceived justice (distributive, procedural, interactional justice) and the satisfaction with service recovery. Managerially, these results suggested retailing companies some ways to recover from service failure.