• The Journal of Industrial Distribution & Business
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• v.9 no.6
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• pp.57-64
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• 2018

Purpose - With the rapid economic development, great changes have happened in the Chinese beer market. The scale of imported beer is increasing. However, the sales of native Chinese beer decrease in recent years. It is because more Chinese customers prefer beer with unique attributes than those with lower prices. In order to take an advantage in this market, practitioners should develop new products to satisfy Chinese customers. Scholars have also focused on beer characteristics to estimate consumers' behavior for improving the development of beer industry. However, most studies are theoretically centered on marketing strategy management or general understanding of the market. It is not enough for us to explain customers' consumption patterns. Some empirical research did attempt to find out beer attributes that may influence their choice behavior. However, they failed to verify what can increase customers' utility through a new product. More importantly, few evidences can be found in the literature. Therefore this study explores the major characteristics of imported beer which may associate with customers' preferences. Research design, data, and methodology - With the results of literature review and focus group interview, we found out four main imported beer attributes and the levels of each factor. A pre-test is constructed to check the problems in the questionnaire protocol. With the results of pre-test, the revised questionnaire is processed among customers who have purchased and had imported beer in China regions such as Beijing, Shanghai, Jiangsu, Guangdong and so on. The choice-based conjoint analysis is applied to analyze the useful data of 205. Results - Results indicate that choice-based conjoint analysis is the effective method to estimate customers' choice behavior. Results also indicate that country of origin, price, taste, and package affect customers' preference and the importances of imported beer attributes are significantly different. Conclusions - Country of origin, price, taste, and package are important for customers to make an imported beer choice decision. Marketers should consider these determinants and their importance to develop new products. Moreover, choice-based conjoint analysis should be the useful method for practitioners to develop a new product of imported beer for sustainable business in the competitive industry.

• Journal of Distribution Science
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• v.13 no.12
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• pp.73-84
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• 2015

Purpose - Various social issues have arisen since the beginning of the 21st century therefore, enterprises that disregarded social issues have become unsustainable, and social enterprises have appeared to address these issues. A social enterprise is a social mission-focused organization that uses a market-based strategy and has a vulnerable business structure. To be self-sustainable, a social enterprise should make consumers aware of the value that it provides and secure its profitability through consumer consumption. From this perspective, this study investigates the relationship between perceived value (utilitarian and hedonic) and loyalty, and examines how memory and attitudes play mediating roles between perceived value and loyalty. For these purposes, the author developed a structural model consisting of several variables. In this model, perceived value, which was utilitarian and hedonic, was proposed to affect the memory and attitudes toward social enterprise products, thus increasing loyalty. Therefore, memory and attitudes were proposed as core mediating variables between perceived value and loyalty. Research design, data, and methodology - To analyze the proposed model, data were collected from 582 respondents and analyzed using SPSS 21.0 and AMOS 21.0. To test unidimensionality and the nomological validity of the measures of each construct, we employed a scale refinement procedure. The results of the reliability test with Cronbach's α and confirmatory factor analysis warranted the unidimensionality of the measures for each construct. In addition, the nomological validity of the measures was warranted from the results of the correlation analysis. The result of the overall model analysis demonstrated a good fit (χ²=529.881, df=144, χ²/df=3.680, p-value=0.000, GFI=0.905, NFI=0.948, CFI=0.961, RMR=0.036, RMSEA=0.068). Results - The findings are summarized as follows. First, the hedonic and utilitarian value of social enterprise products had positive effects on memory and attitudes. Second, the hedonic value of social enterprise products more strongly affects memory and attitudes than utilitarian value. Third, memory and attitudes had positive effects on loyalty. Lastly, memory had a stronger effect on loyalty than attitudes. Conclusions - The purchase rate of social enterprises' products increases only if the products are included in the "information search" and "alternative evaluation" processes in consumers' purchase decision-making processes. Therefore, a social enterprise must actively promote the fact that it pursues a social value, and shares both the hedonic and utilitarian values of its products. Accordingly, because hedonic value has a more significant impact on a company and attitudes, a social enterprise should develop hedonic values for product consumption, thereby leading consumers who care about value consumption to purchase its products. Moreover, a social enterprise must maintain good memories and attitudes for consumers because memory does not change over time, although attitude does. The limitations of this study and suggestions for future research are as follows. This study viewed "consumer loyalty" as the success factor of social enterprises, thereby considers an "increase in sales" as the success factor. Therefore, in future studies, diverse factors, including social contribution and word-of-mouth intention, should be regarded. In addition, future studies need to thoroughly review and make assurances about the relationship between memory and attitude.

• Journal of Distribution Science
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• v.12 no.6
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• pp.81-88
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• 2014

Purpose - Entrepreneurship promotion is emerging as an important economic growth agenda. However, in Korea, entrepreneurship has weakened because of the collapse of the venture bubbles of the 2000s and the global economic recession in 2008, which have induced the business community to choose stability over risk. The Korean government has been implementing several support projects to inspire and promote youth entrepreneurship through various means including financial assistance; however, the perpetuation rate of young entrepreneurship is still low as compared to advanced economies such as the US and EU. This case study focuses on the Youth Start-Up Business Support Program of the Small & Medium Business Corporation, and explores practical alternatives. Further, it aims to suggest managerial factors and a conceptual model for change management factors affecting the business performance creation of a startup company, based on the Small and medium Business Corporation's young venture startup fund. Research design, data, and methodology - Many studies examine the current progress and issues of startup firms, for example, a lack of systematic cultivation of entrepreneurship and startup business training, lack of commercialization funding for youth startup businesses, lack of mentoring, and inadequate infrastructure. From prior research, we address four factors, namely, personal managerial capabilities, innovative business model, sufficient cash flow, and social network, affecting startup companies' business performance. This study involved a sample survey of 200 young entrepreneurs to investigate casual relations between the four factors and business performance. A regression analysis was used to verify the hypotheses. Results - First, in relation to differences in the founder's personal characteristics, age, sales amount, and number of employees significantly impact business performance. Second, regarding the causal relation between the four factors for creating business performance, an innovative business model and social networking have supported the hypotheses, revealing that the more that a start-up founder has an innovative business model and social networking, the more the start-up firms are likely to have better performance (e.g., sales volume, employment, ROE, ROI, etc.). Although the founder's competency and sufficient cash flow have no significant relationship with business performance, the mean value was higher performance for high founder's competency and sufficient cash flow. Conclusions - This study provides basic data on policy support strategies of the Small and Medium Business Corporation, to help young entrepreneurs achieve their start-up business goals. It shows that young entrepreneurship startup firms should strive to explore ideas to satisfy customers' needs, and that changes in customer value and the continuous innovation of business model differentiation are required to actively respond to change management. Moreover, at the infant startup stage, they should activate social network programs to share information, thereby offsetting resource scarcity and managing business risk. Further, the establishment of a long-term vision and the implementation of training programs in related specific fields should be supported to strengthen founders' personal capabilities.

• Journal of Distribution Science
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• v.12 no.8
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• pp.31-42
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• 2014

Purpose - Recently, a variety of activities for practicing the continuing management of domestic and foreign companies have been conducted and further, corporate social responsibility for maximizing the value of stakeholders such as customers, cooperative companies, and the local community emerges as a key business strategy. Accordingly, the issue of whether corporate image and customer value through corporate social responsibility activities positively affect customer loyalty and customer attitude is investigated in this study. Research design, data, and methodology - Corporate social responsibility activities are classified into legal and moral activities, environmental protection activities, economic activities, and community service activities; further, customer values are classified into emotional value, functional value, and social value, to determine the parameters. In addition, the strategic approach direction of social responsibility activities is justified as a strategy for effectively achieving the expected results that corporations seek by proving the effect of these parameters on customer loyalty. Results - The study results can be summarized as follows. First, legal and moral activities, environmental protection activities, economic activities, and community service activities are four types of CSR activities affecting meaningful improvements in corporate image. Second, legal and moral activities affect factors that meaningfully improve customer value, including factors such as emotional value, functional value, and social value, while environmental protection activities affect improvements in the factor of social value only. Third, corporate image affects meaningful improvements in customer value. Fourth, corporate image affects improvements in customer loyalty positively. Fifth, the three factors of customer value, that is, emotional value, functional value, and social value affect meaningful improvements in customer loyalty. Sixth, customer value acts to partly mediate the effect of companies' CSR activities on customer loyalty. As shown in the study results above, it was verified that CSR activities affect meaningful improvements in corporate image and customer value and, in turn, corporate image and customer value affect meaningful improvements in customer loyalty. In addition, it was verified that customer value acts to partly mediate the effects of companies' CSR activities on customer value. Conclusions - Accordingly, the results of this study suggests as follows. First, it was clearly verified that customers' recognition of CSR efforts has a positive effect on corporate image, customer value, and loyalty because CSR activities improve the relationships between customers and corporations by providing customers with value. Second, it was suggested that corporations implement social contribution activities strategically according to the theory that the higher the rate of CSR activities, the better the corporate image and repurchase intention would be, which is a theory verified through practical analysis. Corporations should do this by constructing positive relationships from the value perceived by customers. To summarize the study results in a brief manner, it is suggested by the results of the study that a corporation should conduct CSR more actively to make customers recognize the positive image of their products and services.

• The Korean Journal of Franchise Management
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• v.12 no.4
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• pp.1-11
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• 2021

Purpose: The franchise system started by Singer Sewing Machine in the US is acting as a national economic growth engine in terms of job creation and economic growth. In China, the franchise system was introduced in the mid-1980s. And since joining the WTO, it has grown by 5-6% every year. However, compared to the growth rate of franchises, studies on shared growth between the chain headquarters and franchisees were insufficient. Accordingly, recent studies related to shared growth between the chain headquarters and franchisees have been active in China. The purpose of this study is to examine the knowledge transfer system between the knowledge creation, knowledge sharing, and the use of knowledge by franchise chain headquarters in China. In addition, the relationship between franchise satisfaction and performance is identified. Research design, data, and methodology: The data were collected from franchise stores in Sichuan, China, and were conducted with the help of ○○ Incubation, a Sichuan Province-certified incubator. From November 2020 to January 2021, 350 copies of the questionnaire were distributed in China, and 264 copies were returned. Of these, 44 copies with insincere answers and response errors were excluded, and 222 copies were used for analysis. The data were analyzed with SPSS 22.0 and AMOS 22.0 statistical packages. Result: The results of this study are as follows. First, knowledge creation has been shown to have a statistically significant impact on knowledge sharing and knowledge utilization. In particular, the effectiveness of knowledge creation was higher in knowledge sharing than in knowledge utilization. And we can see that knowledge sharing also has a statistically significant e ffect on knowledge utilization. Second, knowledge sharing was not significant for transaction satisfaction and business performance, and knowledge utilization was significant for transaction satisfaction and business performance. These results can be said to mean less interdependence of the Chinese franchise system. Finally, transaction satisfaction was statistically significant to business performance. The purpose of this study was to examine the importance of knowledge management to secure long-term competitive advantage for Chinese franchises. This study shows that knowledge sharing is important for long-term franchise growth. And we can see that there is a lack of knowledge sharing methods in the case of franchises in China. I n addition, it was found that the growth of Chinese franchises requires systematization of communication, information sharing measures and timing, help from chain headquarters, and mutual responsibility awareness.

• Journal of Korea Water Resources Association
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• v.52 no.8
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• pp.515-529
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• 2019

Geospatial information for river network and watershed boundary have played a fundamental roles in terms of river management, planning and design, hydrological and hydraulic analysis. Irrespective of their importance, the lack of punctual update and improper maintenance in currently available river-related geospatial information systems has revealed inconsistency issues between individual systems and spatial inaccuracy with regard to reflecting dynamically transferring riverine geography. Given that digital elevation models (DEMs) of high spatial resolution enabling to reproduce precise river network are only available adjacent to national rivers, DEMs with poor spatial resolution lead to generate unreliable river network information and thereby reduce their extensible applicabilities. This study first of all evaluated published spatial information available in Korea with respect to their spatial accuracy and consistency, and also provides a methodology and tool to modify existing low resolution of DEMs by means of striation of conventional or digitized river network to replicate input river network in various degree of further delineation. The tool named FSND was designed to be operated in ArcGIS ModelBuilder which ensures to automatically simulate river network striation to DEMs and delineation with different flow accumulation threshold. The FNSD was successfully validated in Seom River basin to identify its replication of given river network manually digitized based on recent aerial photograph in conjunction with a DEM with 30 meter spatial resolution. With the derived accuracy of reproducibility, substantiation of a various order of river network and watershed boundary from the striated DEM posed tangible possibility for highly extending DEMs with low resolution to be capable of producing reliable riverine spatial information subsequently.

• The Journal of Industrial Distribution & Business
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• v.12 no.6
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• pp.57-74
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• 2021

Purpose: Before COVID-19 pandemic, Chinese mid/low-priced hotel industry has been steadily growing in recent years, and internal and external competition has been intensifying. Under these circumstances, this study started with a strategic objective to increase the quality of service, thus enabling customer satisfaction and revisit intention. For enhancing the competitiveness of Chinese mid/low-priced hotel business, we plan to establish a model using SERVQUAL, O2O platform, and identify their relationship through empirical analyses. Research design, data and methodology: Through the consideration of the existing literature, this study intended to identify the characteristics of service quality in Chinese mid/low-priced hotels and to consider their impact on customer satisfaction and revisit intention. We also wanted to examine the moderating effect of the O2O platform between the characteristics of service quality and customer satisfaction. A survey was carried out on customers using mid/low-priced hotels in China and empirical analyses were conducted using regression analyses. Results: First, in the hypothesis of service qualities' effects on customer satisfaction were identified with significant positive effects. Second, in the hypothesis of service qualities' effects on revisit intention, "tangibles, reliability, and empathy" have shown significant positive. Third, in the verification of the moderating effect of the O2O platform, there were "positive partial moderating effects" between service qualities and customer satisfaction. Finally, the effect of customer satisfaction on revisit intention was positive significant. Conclusions: In order to satisfy their customers, improvements in service quality should be made first. In addition, customer satisfaction had a positive impact on revisit intention. In order to revitalize Chinese mid/low-priced hotels, differentiation strategy is also needed for specialized customers such as college students, and basically, efforts should be made to optimize the O2O platform. O2O platforms should establish optimal platform construction strategies based on the customer's perspective. After all, in the case of Chinese mid/low-priced hotels, it is necessary to strengthen the construction of the latest hardware infrastructure and O2O platform of software infrastructure, and to improve customers' advanced online and offline experiences. Finally, regarding the hypothesis that was rejected among service qualities' characteristics, we tried to discuss the reason and find the implications of these.

• The Korean Journal of Franchise Management
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• v.13 no.2
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• pp.1-15
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• 2022

Purpose: The globalization of the Korean restaurant franchise industry differs from the business performance of enhancing the brand image and customers' intention to revisit depending on the degree of localization marketing. Therefore, it is necessary to consider the extent to which the localization marketing activities of overseas Korean restaurant franchise companies affect the customer's perception. This study aims to investigate the effects of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) of Korean restaurant franchise companies on customer revisit intention. Research design, data, and methodology: For this study, 150 questionnaires using local Korean restaurants in Beijing, China, were analyzed using SPSS Ver.21 and AMOS Ver.22. Result: It was confirmed that the localized menu, localized service experience, and localized physical environment all affect the intention to revisit customers. Based on these verification results, if overseas franchises fully recognize localization marketing, which is an important factor for local business success, and establish localization strategies, they can gain an edge in competition with local Korean restaurants or restaurant franchises founded by locals. There may be a higher probability that However, it was found that localization price and localization promotion had no mediating effect of brand image between revisit intention and revisit intention. It was found that it had no effect on the degree of inquiry and had a negative effect. Conclusions: Due to the impact of the COVID-19 pandemic, there have been many changes in the domestic and overseas food service industry over the past two years. Therefore, in future research, it is necessary to study the localization of overseas Korean restaurant franchise companies that are more multidimensionally subdivided. Various measures of customized localization marketing for optimal regional characteristics should be developed and applied to enhance customer revisiting and brand image of Korean restaurant franchise companies entering overseas. In the future, this study will be meaningful data for the establishment of localization marketing (Localized Menu, Localized Price, Localized Service Experience, Localized Promotion, Localized Physical Environment) strategies for Korean restaurant franchise companies that consider overseas expansion or have already entered.

• Journal of Korea Trade
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• v.26 no.5
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• pp.56-75
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• 2022

Purpose - This study examines the influencing factors of China's cross-border e-commerce exports in the context of the current situation and trends of China's cross-border e-commerce development. Through an improved trade gravity model, it provides more in-depth research and constructive opinions on the development of cross-border e-commerce in China. In this paper, factors such as consumption gap, volume of trade frictions, number of tourists, Internet usage and trade openness are added to the formula of the traditional trade gravity model in the improved trade gravity model to examine the influencing factors on China's cross-border e-commerce exports. Design/methodology - According to the empirical analysis, China's cross-border e-commerce exports to ten countries are used as dependent variables, and consumption gap, trade friction volume, trade distance, trade openness and number of Internet users are taken as independent variables. Regression analysis is conducted through a modified gravity model to test whether the hypotheses hold. Findings - The analysis shows that the hypothesis that China's cross-border e-commerce exports are influenced by trade openness, trade distance, consumption gap between trade parties, and the number of Internet users in the importing country is supported by these four hypotheses, but not all independent variables have an impact on them. Specifically, the number of travelers, trade frictions do not have an impact on China's cross-border e-commerce. That is to say, trade friction between China and the United States and political issues such as China-India and China-Japan territorial disputes that emerged before do not affect the development of cross-border e-commerce in China. Originality/value - The analysis shows that the factors influencing China's cross-border e-commerce exports are the trade openness of the importing country, the trade distance, the number of Internet users in the importing country, and the consumption gap between the two sides of the trade. The trade openness and the number of Internet users positively contribute to China's cross-border e-commerce, while the consumption gap and trade distance are negatively related to them. And the analysis found that the Sino-US trade war and the Sino-Indian territorial disputes and other trade frictions to China's cross-border e-commerce exports did not have a substantial impact.

• Journal of Korea Trade
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• v.27 no.5
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• pp.1-22
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• 2023

Purpose - Southeast Asia has been the focus of Korea's foreign investment. Korea has been helping developing countries in Southeast Asia achieve economic growth and win-win cooperation through capital exports. FDI is an important channel for technology diffusion. However, the impact of FDI on the bias of technological progress in the host country is dependent on the host country's own endowment structure and capital-labor factor substitution elasticity. Therefore, the central issue of this paper is to accurately evaluate the impact of Korea's FDI to the four Southeast Asian countries in various industries on their bias of technological progress. Design/methodology - The paper uses macroeconomic data for Korea and four East Asian countries to estimate capital-labor factor elasticities of substitution using nonlinear, seemingly uncorrelated regressions (NLSUR). Then, the biased technological change index (BTCI) is calculated for each country. Finally, panel data analysis is used to explore the impact of Korean FDI in various industries in the four Southeast Asian countries on their own directed technological progress, and a robustness test is conducted. Findings - There is a substitution relationship between capital and labor factors based on their elasticity in Korea, Singapore and the Philippines. There is a complementary relationship between capital and labor factors in Indonesia and Malaysia. According to the BTCI, there is a trend toward labor-biased technological progress in all countries. Korean investments in manufacturing, wholesale and retail trade in the host country trigger capital-biased technological change in the host country; investments in the finance, insurance and information and communication sectors trigger labor-biased technological change. In addition, this paper also confirms that directed technological progress can enable cross-country transmission. Originality/value - The innovation of this paper lies in three aspects. First, we estimate the BTCI for five countries and explore the trend and situation of directed technological progress in each country from each country's own perspective. Second, we explore the impact of Korean FDI in the host country on the bias to its technological progress at the industry level. Second, we explore the impact of Korean FDI in various industries in the four Southeast Asian countries on the four countries' own directed technological progress from a national perspective. Finally, we propose corresponding countermeasures for technological progress from the perspective of inverse factor endowment. These innovative points not only expand the understanding of technological progress and cross-country technology transfer in East Asia but also provide practical references for policy-makers and business operators.