• Title/Summary/Keyword: Methodology of Design

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Effects of the Support and Control of Franchisors on Franchisees' Satisfaction and Response Strategies (프랜차이즈 가맹본부의 지원, 통제가 가맹점사업자의 만족 및 반응전략에 미치는 영향)

  • Kwon, Yong-Deok;Yu, Jong-Pil
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.43-54
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    • 2014
  • Purpose - This study was based on a theoretical consideration of the structural relationship between the support and control of the franchisor and the satisfaction and strategic response (voice, loyalty, exit, neglect) of the franchisee. First, based on the preceding research, this study systematically organized the type of support and control of the franchisor. Second, the study examined the effects of a franchisor's support and control on the expectancy disconfirmation between affiliated franchisees' expectations before a franchise agreement and performance after operating an affiliated store. Third, the study looked into the effects of expectancy disconfirmation relating to a franchisor's support and control on an affiliated franchisees' general satisfaction. Fourth, this study examined the influence of the general satisfaction of a franchisee on affiliated franchisees' response strategies. Research design, data, and methodology - In this study, the population comprised the nation's franchisors, and the sample comprised franchisees conducting business in Seoul and Gyeonggi-do. A self-administered questionnaire was used; the author and examiner explained the study's parameters to the interviewees in advance, to lessen the rate of rejection of the answers and to maintain reliability. The author distributed 350 copies of the questionnaire and collected 327 copies (93.4%). The author removed 54 copies of the sample, as these copies belonged to franchisees that were not registered by the Fair Trade Commission and/or were thought to have either defects or inadequate answers. The author selected an effective sample of 273 copies to enter data and to do the statistical analysis. Results - Both a reliability analysis and a confirmatory factor analysis were performed to measure reliability and validity, and a structural equation model was used to conduct the hypothesis test and investigate the models. The hypothesis was tested (Table 5). The models had a suitable fit, for instance, χ2 = 447.663(df = 212, p = .000), χ2/df = 2.112, GFI = .881, AGFI = .858, RMR = .083, RMSEA = .067, NFI = .932, and CFI = .961. The hypothesis test results were as follows. Hypothesis 1 was accepted (C.R. = -2.339, p = .019). Hypothesis 2 was accepted (C.R. = 15.213, p = .000). Hypothesis 3 was accepted (C.R. = -2.631, p = .006). Hypothesis 4 was accepted (C.R. = 16.271, p = .000). Hypothesis 5 was accepted (C.R. = 2.391, p = .017). Hypothesis 6 was accepted (C.R. = 5.777, p = .000). Hypothesis 7 was accepted (C.R. = 17.153, p = .000). Hypothesis 8 was accepted (C.R. = 24.746, p = .000). Hypothesis 9 was accepted (C.R. = -10.150, p = .000). Hypothesis 10 was accepted (C.R. = -12.124, p = .000). Conclusions - The research results showed that expectations for a franchisor's support and control had a significant influence on expectation disconfirmation in a negative way, whereas the performance of support and control were found to have a significant influence on expectation disconfirmation in a positive way. In addition, the expectation disconfirmation of support and control was found to have a significant influence on satisfaction of franchisees in a positive way. Generally, regarding the research on control, control is found to have a negative influence on the satisfaction of franchisees, but this study proves that control is found to affect it in a positive way through conformity.

Study on the Effect of Product Line Pricing on Loading Efficiency and Logistics Cost (상품라인별 가격결정이 적재효율 및 물류비에 미치는 영향에 관한 연구)

  • Jung, Sung-Tae;Yoon, Nam-Soo;Han, Kyu-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.55-69
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    • 2014
  • Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in

    , loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.

  • Effects of Red Peppers on the Its Pungency and Color during Kimchi Fermentation (고춧가루가 발효중 김치의 매운맛과 색도에 미치는 영향)

    • 구경형;박재복;박완수
      • Journal of the Korean Society of Food Science and Nutrition
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      • v.33 no.6
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      • pp.1034-1042
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      • 2004
    • This study was carried out to investigate preparation of reconstructed red peppers, effects of pungency and redness of red peppers on the Kimchi quality using central composite design and response surfaces methodology. Capsaicinoids and ASTA (American Spice Trading Association) value put in X$_1$, X$_2$ of independent variable. The result of response surface regression analysis of reconstructed red peppers, correlation coefficient ($R^2$) of overall pungency intensity, persistence and degree of redness was 0.935, 0.935 and 0.821, respectively. After it was made Kimchi samples with reconstructed red peppers, it was examined pH, titratable acidity and lactic acid bacteria of its during fermentation. In the initial fermentation period of Kimchi, it showed pH of 5.46∼5.78, titratable acidity of 0.27∼0.31%, salt content of 2.26∼2.48% and lactic acid bacteria of 4.05${\times}$10$^{5}$ ∼6.23${\times}$10$^{5}$ , respectively. And it showed traditional fermentation pattern in the pH, titratable acidity and microbes of the middle (appropriate fermentation) and last (excessive) fermentation period. While capsaicinoids content in the Kimchi decreased a little according to extend fermentation period, ASTA value showed low correlation reconstructed red pepper and fermentation period. Also, it was analyzed correlation coefficient ($R^2$) of independent variables (capsaicinoids, X$_1$; ASTA value, X$_2$) between sensory attribute in the Kimchi during fermentation. The result of regression analysis, $R^2$ in the overall pungency intensity, persistence and degree of redness showed 0.515, 0.675, 0.784, respectively.

    A Comparative Study on Requirements for the Buyer's Right to Withhold Performance for the Seller's Actual Non-Performance under the CISG and the CESL

    • Lee, Byung-Mun;Kim, Dong-Young
      • Journal of Korea Trade
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      • v.24 no.8
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      • pp.101-120
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      • 2020
    • Purpose - The buyer's right to withhold performance is a useful and important self-help remedy to protect himself from the seller's breach of contract, and it is also the coercive means to induce the seller to perform his part of contract. However, the buyer's exercise of such a right often exposes himself to the risk of breaching the contract. This is generally due to his ignorance when he is entitled to the right and also uncertainties inherent in the law. Therefore, the purpose of this paper is to examine what the requirements should be fulfilled before the buyer exercises the right for the seller's actual breach of contract. Design/methodology - In order to achieve the purposes of the study, it executes a comparative study of the rules as to the requirements for the buyer's right to withhold performance for the seller's actual non-performance under the CISG and the CESL. It mainly focuses on performance due, the seller's non-performance, the buyer's readiness to perform and the requirement of notice. Findings - The main findings of this comparative study can be summarized as follows: Although the CISG has no expressive provision for the buyer's general right to withhold performance for the seller's actual non-performance, it may be inferred from the general principles the CISG underlies, synallagmatic nature of the contract. In addition, it can be drawn by analogy from relevant provisions of the CISG. On the other hand, the CESL expressively provides that the buyer has a general right to withhold performance where the seller fails to tender performance or perform the contract. Therefore, it seems that the position of CESL is rather easier and more apparent to allow the buyer to withhold performance for the seller's non-performance. Originality/value - Most of the existing studies on the right to withhold performance under the CISG have centered on the right to withhold performance for an anticipatory breach of contract. On the other hand, there have been few prior studies on the right to withhold performance for the actual nonperformance during a contractual period of performance. Therefore, this paper examined the requirements for the buyer's right to withhold performance under the CISG and the CESL in a comparative way for the seller's actual breach of obligation. In this conclusion, it may provide practical and legal considerations and implications for business people who are not certain about the right to withhold performance.

    The Impact of Franchisor's Economic and Philanthropic CSR on Franchisees' Economic Satisfaction, Social Satisfaction, and Loyalty (프랜차이즈 본부의 경제적 책임과 박애주의적 책임이 가맹점의 경제적 만족, 사회적 만족, 그리고 충성도에 미치는 영향)

    • HUR, Soon-Beom;NOR, Yong-Sook;LEE, Debora
      • The Korean Journal of Franchise Management
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      • v.10 no.3
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      • pp.25-35
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      • 2019
    • Purpose - The major objective of this study was to investigate the effect of franchisor's (economic and philanthropic) CSR in inspiring franchisee's loyalty for the franchisor. Another aim of this investigation also was to clarify the mediating role of economic and social satisfaction in the relationship between franchisor's CSR and franchisee's loyalty. Research design, data, and methodology - This study explores the structural relationship between franchisor's CSR and franchisee's loyalty and in these relationships, the mediating role of relationship satisfaction. Data were gathered from employees(above manager) in food-service franchisee companies in Seoul, Korea. The questionnaires were distributed to managers of the franchise stores. A total of 251 questionnaires were collected. Data management and analysis were performed using SPSS 21.O and SmartPLS 3.0. Evaluation of measurement model and structural model was carried out using confirmatory factor analysis and correlation analysis. Result - The results of this study show as follows. First, economic CSR had positive effects on economic satisfaction and social satisfaction. Second, philanthropic CSR had positive effects on social satisfaction. Third, economic satisfaction and social satisfaction had positive effects on franchisee's loyalty to the franchisor. Conclusions - The important implications of this study have as follows. First, this study has found that economic CSR can create a high economic satisfaction and social satisfaction of franchisee. Second, this findings suggest that the philanthropic CSR can improve the social satisfaction of franchisee. Third, this results demonstrate, for the first time, that the economic satisfaction and social satisfaction of franchisees can play a crucial role to improve their loyalty for the franchisor and pursue mutual development by maintaining the stable business relationship with a franchisor. In this investigation there are at least three limitations. First, Because the research sample is limited to the foodservice franchisee in Seoul, it is not possible to be representativeness of the national franchisee. Second, CSR activities are mostly focused on large franchise companies. Therefore, there is a limit to the research approach. Finally, this study examined the effect of economic CSR and philanthropic CSR on the loyalty of franchisors, but in the future study, it is necessary to analyze the relationship between CSR and loyalty of franchise companies by collecting specific quantitative data such as re-contract rate and management performance of franchisees.

    Global Big Data Analysis Exploring the Determinants of Application Ratings: Evidence from the Google Play Store

    • Seo, Min-Kyo;Yang, Oh-Suk;Yang, Yoon-Ho
      • Journal of Korea Trade
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      • v.24 no.7
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      • pp.1-28
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      • 2020
    • Purpose - This paper empirically investigates the predictors and main determinants of consumers' ratings of mobile applications in the Google Play Store. Using a linear and nonlinear model comparison to identify the function of users' review, in determining application rating across countries, this study estimates the direct effects of users' reviews on the application rating. In addition, extending our modelling into a sentimental analysis, this paper also aims to explore the effects of review polarity and subjectivity on the application rating, followed by an examination of the moderating effect of user reviews on the polarity-rating and subjectivity-rating relationships. Design/methodology - Our empirical model considers nonlinear association as well as linear causality between features and targets. This study employs competing theoretical frameworks - multiple regression, decision-tree and neural network models - to identify the predictors and main determinants of app ratings, using data from the Google Play Store. Using a cross-validation method, our analysis investigates the direct and moderating effects of predictors and main determinants of application ratings in a global app market. Findings - The main findings of this study can be summarized as follows: the number of user's review is positively associated with the ratings of a given app and it positively moderates the polarity-rating relationship. Applying the review polarity measured by a sentimental analysis to the modelling, it was found that the polarity is not significantly associated with the rating. This result best applies to the function of both positive and negative reviews in playing a word-of-mouth role, as well as serving as a channel for communication, leading to product innovation. Originality/value - Applying a proxy measured by binomial figures, previous studies have predominantly focused on positive and negative sentiment in examining the determinants of app ratings, assuming that they are significantly associated. Given the constraints to measurement of sentiment in current research, this paper employs sentimental analysis to measure the real integer for users' polarity and subjectivity. This paper also seeks to compare the suitability of three distinct models - linear regression, decision-tree and neural network models. Although a comparison between methodologies has long been considered important to the empirical approach, it has hitherto been underexplored in studies on the app market.

    Comparative Study of the Requirements for the Buyer's Right to Require Delivery of Substitute Goods under the CISG and the Korean Civil Act

    • Lee, Yoon
      • Journal of Korea Trade
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      • v.26 no.1
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      • pp.81-98
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      • 2022
    • Purpose - This study aims to compare the requirements under the United Nations Convention on Contract for the International Sales of Goods (CISG) and the Korean Civil Act (KCA) regarding the buyer's right to require the delivery of substitute goods. The buyer's right to demand substitute delivery not only protect them from the seller's breach of contract but also preserves the contractual bond between the parties by providing an opportunity for sellers to protect their goodwill and circumvent the extreme remedy of avoidance. However, as substitute delivery entails additional efforts and costs for return and re-shipment, this right should not be allowed in every case of defect. Additionally, unlike the CISG, the KCA contains no specific provision related to the requirements for claiming substitute delivery. Therefore, it would be meaningful to examine and compare what requirements should be fulfilled before the buyer exercises the right in relation to non-conforming goods under the CISG and the KCA. Design/methodology - We conducted a comparative study of the requirements under the CISG and the KCA regarding the buyer's right to require delivery of substitute goods given a seller's delivery of non-conforming goods. Additionally, we referred to the opinions from the CISG Advisory Council, the draft of the KCA amendment, and related precedents, mainly focusing on the existence and severity of defects, reasonableness, and timely notice and requests as the major requirements for substitute delivery. Findings - The results of this study can be summarized as follows: First, the CISG provides more detailed requirements about the right to require delivery of substitute goods; by contrast, the KCA does not stipulate any such requirement. Thus, specific requirements for substitute delivery should be included when amending the KCA. Second, the CISG attempts to minimize overlapping and conflict with other remedies by specifying detailed requirements for the delivery of substitutes. Third, both the CISG and KCA require reasonableness for substitute delivery. Originality/value - Although there are no explicit legal requirements for substitute delivery under the KCA, there has been relatively little discussion of this issue to date. Therefore, the findings of our study can guide future revisions of the KCA to fill this loophole. Moreover, the recently released CISG Advisory Council opinion that clarifies the continuing confusion and debate, can help distinguish which remedy is suitable for a particular case. It may provide practical advice for businesspeople in international trade as well as legal implications for the future development of the KCA.

    Effect of Eco-Friendly Food Store Attributes on Perceived Value and Loyalty: Moderating Effect of Delivery Service (친환경 식품 전문점의 점포속성이 지각된 가치와 충성도에 미치는 영향: 배송 서비스의 조절효과)

    • KIM, Jin-Kyu;PARK, Jong-Hyun;YANG, Jae-Jang
      • The Korean Journal of Franchise Management
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      • v.13 no.2
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      • pp.33-51
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      • 2022
    • Purpose: The online market is growing the most in history due to the expansion of non-face-to-face commerce. In addition, as consumers' interest in health, food safety, and environment increases, interest in and consumption of eco-friendly agricultural products is also increasing. Therefore, in the case of a specialty store that sells eco-friendly organic agricultural products, a marketing strategy that can increase customer loyalty by reflecting these consumer needs is necessary. In this study, the store attributes of eco-friendly food stores are classified into location, assortment, price, quality, and employee service, and the effect of each store attribute on utilitarian and hedonic value is investigated. Research design, data, and methodology: The subjects of this study were customers who visited an eco-friendly food store. Of the 511 survey responses, 311 were used for statistical verification, excluding 200 who had not visited within the last 3 months. For statistical analysis, Smart PLS 3.0 was used, and after checking the validity and reliability of the items, hypothesis testing was performed. Result: As a result of the study, it was found that assortment, quality, and employee service among store attributes had a positive (+) effect on utilitarian and hedonic value. Second, location had no significant effect on utilitarian and hedonic value. Third, price did not appear to have a positive (+) effect on the utilitarian value, and it was found to have a positive (+) effect on the hedonic value. Fourth, It was investigated whether the presence or absence of delivery service had an effect on store attributes between utilitarian and hedonic value, and it was found that there was a significant effect between employee service and hedonic value. Conclusions: Among eco-friendly food store environment management will be required in order to provide food that meets the tastes and needs of consumers by diversifying the taste, standard, and quality grade of food, and to maintain or improve the quality. In order to unlike other stores, eco-friendly food stores have high price resistance from the point of view of consumers, so it is necessary to diversify promotional media such as YouTube and SNS to raise awareness of eco-friendly organic food.

    "Servicescape" Differentiation in a Hair Salon (헤어살롱 서비스스케이프 차별화 성공사례)

    • Lee, Sang-Hyun;Park, Chul-Ju
      • Journal of Distribution Science
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      • v.13 no.9
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      • pp.71-79
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      • 2015
    • Purpose - The purpose of this paper is to find out the effect of changes in the differentiated "servicescape" on the business performance in the hair salon industry using a case study. For this, we selected hair salon M located in Suwon. The shop is innovatively different from existing shops in terms of spatial layout and functionality. We conducted in-depth research, beginning with the launch of the shop concept through investment and ongoing stable sales. Research design, data, and methodology - The M hair salon is a start up shop providing a differentiated servicescape (physical environment where the service takes place) located in Suwon, Yeongtong-gu. We conducted research to investigate how spatial layout and functionality of the servicescape impact customers' perceived quality. The interview period and case analysis was May 2014 through March 2015, covering 11 months. To conduct the case analysis, we analyzed the spatial layout and functionality of existing shops and interviewed customers and experts about the difference between hair salon M and existing shops. Results - Our results found clues to the positive effect of spatial layout and functionality among servicescape factors on perceived service quality at the salon. The shop showed a fast payback of the principal investment, growth potential in contrast to competitors near the salon, and 45 percent returning customers. The problem with the spatial layout at existing shops was that customers were aware of the way other people were looking at them, since viewing angles overlapped, therefore there was a limitation to the relationship intensity with an exclusive hair designer. In contrast, the layout of the stands at the M salon kept the number of dressing stands limited to maximize the customer's emotional response. Additionally, because of the new layout of dressing stands hiding other customer voices and appearance in the salon, customers perceived their service space as independent. Therefore, they did not have to focus on their personal emotional response, which was one of the advantages of the new layout. Conclusions - This study conducted case study analysis by offering a new perspective focusing on spatial layout, previously not considered as an independent variable of quality evaluations and customer satisfaction in existing literature on hair salon management. Therefore, this study contributes to the field by offering an opportunity to discover the causal relationships between the overlooked physical environment and a customer's perceived quality. However, a process objectifying the results of the study through empirical analysis and hypotheses is needed to overcome the limitations of the case study approach and generalize the results. Moreover, it would be beneficial to conduct further empirical study of the relationship between the spatial layout provided in the case and a customer's emotional response and change in mood. In addition, an analysis is needed regarding how customers feel about the factors using the Kano Model. These suggestions would be considered in further study.

    Evaluation on Development Performances of E-Commerce for 50 Major Cities in China (중국 주요 50개 도시의 전자상거래 발전성과에 대한 평가)

    • Jeong, Dong-Bin;Wang, Qiang
      • Journal of Distribution Science
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      • v.14 no.1
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      • pp.67-74
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      • 2016
    • Purpose - In this paper, the degree of similarity and dissimilarity between pairs of 50 major cities in China can be shown on the basis of three evaluation variables(internet businessman index, internet shopping index and e-commerce development index). Dissimilarity distance matrix is used to analyze both similarity and dissimilarity between each fifty city in China by calculating dissimilarity as distance. Higher value signifies higher degree of dissimilarity between two cities. Cluster analysis is exploited to classify 50 cities into a number of different groups such that similar cities are placed in the same group. In addition, multidimensional scaling(MDS) technique can obtain visual representation for exploring the pattern of proximities among 50 major cities in China based on three development performance attributes. Research design, data, and methodology - This research is performed by the 2013 report provided with AliResearch in China(1/1/2013~11/30/2013) and utilized multivariate methods such as dissimilarity distance matrix, cluster analysis and MDS by using CLUSTER, KMEANS, PROXIMITIES and ALSCAL procedures in SPSS 21.0. Results - This research applies two types of cluster analysis and MDS on three development performances based on the 2013 report of Aliresearch. As a result, it is confirmed that grouping is possible by categorizing the types into four clusters which share similar characteristics. MDS is exploited to carry out positioning of both grouped locations of cluster and 50 major cities belonging to each cluster. Since all the values corresponding to Shenzhen, Guangzhou and Hangzhou(which belong to cluster 1 among 50 major cities) are very large, these cities are superior to other cities in all three evaluation attributes. Twelve cities(Beijing, ShangHai, Jinghua, ZhuHai, XiaMen, SuZhou, NanJing, DongWan, ZhangShan, JiaXing, NingBo and FoShan), which belong to cluster 3, are inferior to those of cluster 1 in terms of all three attributes, but they can be expected to be the next e-commerce revolution. The rest of major cities, in particular, which belong to cluster 4 are relatively inferior in all three attributes, so that this automatically evokes creative innovation, which leads to e-commerce development as a whole in China. In terms of internet businessman index, on the other hand, Tainan, Taizhong, and Gaoxiong(which belong to cluster 2) are situated superior to others. However, these three cities are inferior to others in an internet shopping index sense. The rest of major cities, in particular, which belong to cluster 4 are relatively inferior in all three evaluation attributes, so that this automatically evokes innovation and entrepreneurship, which leads to e-commerce development as a whole in China. Conclusions - This study suggests the implications to help e-governmental officers and companies make strategies in both Korea and China. This is expected to give some useful information in understanding the recent situation of e-commerce in China, by looking over development performances of 50 major cities. Therefore, we should develop marketing, branding and communication relevant to online Chinese consumers. One of these efforts will be incentives like loyalty points and coupons that can encourage consumers and building in-house logistics networks.


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