• The Journal of the Korea Contents Association
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• v.11 no.10
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• pp.217-233
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• 2011

In this study, we have examined how the potential users of IT convergence product use the external information sources for purchasing decision focusing on a case of smartphone. Although the specifications and price of IT convergence products, such as smartphone, tablet pc, and smart TV, are considered as major criteria for purchasing decision, the competitiveness of these factors have disappeared as many companies launch similar products in the market. External information sources play a significant role to differentiate the alternatives by offering value-added experience information. The effect of external information sources becomes stronger for experience and high-involvement product whose performance can be evaluated through only users' direct experience. In this study, we categorized the external information sources for smartphone into five; company ads, personal network, expert group, consumers, and media. Through an empirical study with potential smartphone users, we verified how these external information sources affect users' purchasing decision in the perspective of the perceived attributes of information source, quality of information, and individual's characteristics based on self-regulatory theory.

• The Journal of Society for e-Business Studies
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• v.25 no.4
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• pp.15-32
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• 2020

Increasing uncertainties in the technological innovation environment and increasing technology competition also present new challenges in terms of industrial technology security. Therefore, the purpose of this study was to identify the direction of policy change necessary for the improvement of related policies in the future by examining the importance and implementation of the government's industrial technology security support policies for small and medium-sized enterprises engaged in industrial technology innovation activities. As a result of the analysis, first of all, small and medium-sized enterprises that responded to the government's industrial technology security support policy were perceived to be less performing than the importance of the program. These results can be said to mean that selective budget expansion for related policy programs may be necessary, along with efforts to improve the quality of each program. Second, an analysis of the differences in group recognition between new technology certification firms and industrial technology verification(certification) companies showed that significant differences exist between groups for the program. These results suggest that more effective operation of the relevant policies may require policy enforcement in consideration of the level of security and will of each company in industrial technology, as much as the quantitative characteristics of the entity. This study is meaningful in providing the necessary policy directional basic information for the design and execution of more specific and effective industrial technology security policies by presenting empirical research results that domestic small and medium-sized enterprises are aware of about the government's industrial technology security policies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.5
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• pp.61-74
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• 2021

This study investigated the relationship between the social legitimacy and financial performance perceived for venture company. In particular, social legitimacy was classified into prior experiences, organizational competency, market-related, and government-related legitimacy according to the characteristics of venture businesses, and its effect on the financial and non-financial performance of venture businesses was verified. Data were collected by conducting a survey among 300 domestic venture businesses. According to the results it can be understood that social legitimacy affects the financial and non-financial performance of venture businesses. In other words, it was found that the acquisition of resources from external investors and governments which is justified by stakeholder and investors, venture business executives and employees' prior experience such as start-up experience, and retention of outstanding talent, etc., developing trust from the market and consumers through high organizational competency and differentiated product provision, have a positive effect on the financial and non-financial performance of venture companies. It can be interpreted that higher survival is possible through running the venture businesses with social legitimacy. In addition, this study is meaningful in that it presents a new standard for survival through measuring the relationship of the influence on substantial performance of venture businesses by expanding the existing sociological research to business management research.

• The Korean Journal of Franchise Management
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• v.10 no.1
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• pp.43-52
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• 2019

Purpose - Many companies use the Internet to conduct their business to maintain and acquire their customers. SNS is used as a site where users can create profiles, build personal networks, and then share and exchange information with others. Not only do people use SNS for their self-promotion, but they also promote their services by creating SNS pages. SNS is recognized as a medium for implementing effective advertising strategies and is being used as an important means of promoting the company. Therefore, in this study, we investigate the effect of SNS marketing characteristics of restaurant franchise firms on utilitarian value and hedonic value and examine their effects on purchase intention. Research design, data, and methodology - The data were collected from 20s-60s respondents who have used SNS for restaurant visit using Google survey. A total of 159 responses were collected and used for final analysis. Smart PLS 3.0 was used for the hypothesis test. Results - As a result of an analysis, it was shown that the influence of the playfulness and affordability of information on the utilitarian value had a significant positive effect. Interaction and up-to-date did not have a positive effect on utilitarian value. Interaction, affordability, and up-to-date have no significant positive effects on hedonic value. The playfulness of information has a positive effect on the hedonic value. Both utilitarian value and hedonic value had positive effects on purchase intention. Conclusions - The findings of this study suggest that the SNS marketers of restaurant franchisors should focus on the playfulness, affordability, and up-to-date rather than the interactivity of SNS. In marketing through SNS, the act of presenting the basis of information and enhancing the provision of information through objective criteria makes it possible to experience the practical value of information. It is necessary to develop differentiated contents which cause customers interest and fun and to induce many customers' purchase intent by providing objective and realistic information. In order to increase the customers' repurchase intentions toward the food service business, customers should maximize the hedonic value and practical value felt through information. It should also focus on providing information that customers are receptive to, rather than providing prompt information.

• Asia Marketing Journal
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• v.14 no.2
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• pp.65-96
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• 2012

Brand has received much attention from considerable marketing research. When consumers consume product or services, they are exposed to a lot of brand related stimuli. These contain brand personality, brand experience, brand identity, brand communications and so on. A special kind of new crisis occasionally confronting companies' brand management today is the brand related rumor. An important influence on consumers' purchase decision making is the word-of-mouth spread by other consumers and most decisions are influenced by other's recommendations. In light of this influence, firms have reasonable reason to study and understand consumer-to-consumer communication such as brand rumor. The importance of brand rumor to marketers is increasing as the number of internet user and SNS(social network service) site grows. Due to the development of internet technology, people can spread rumors without the limitation of time, space and place. However relatively few studies have been published in marketing journals and little is known about brand rumors in the marketplace. The study of rumor has a long history in all major social science. But very few studies have dealt with the antecedents and consequences of any kind of brand rumor. Rumor has been generally described as a story or statement in general circulation without proper confirmation or certainty as to fact. And it also can be defined as an unconfirmed proposition, passed along from people to people. Rosnow(1991) claimed that rumors were transmitted because people needed to explain ambiguous and uncertain events and talking about them reduced associated anxiety. Especially negative rumors are believed to have the potential to devastate a company's reputation and relations with customers. From the perspective of marketer, negative rumors are considered harmful and extremely difficult to control in general. It is becoming a threat to a company's sustainability and sometimes leads to negative brand image and loss of customers. Thus there is a growing concern that these negative rumors can damage brands' reputations and lead them to financial disaster too. In this study we aimed to distinguish antecedents of brand rumor transmission and investigate the effects of brand rumor characteristics on rumor spread intention. We also found key components in personal acceptance of brand rumor. In contextualist perspective, we tried to unify the traditional psychological and sociological views. In this unified research approach we defined brand rumor's characteristics based on five major variables that had been found to influence the process of rumor spread intention. The five factors of usefulness, source credibility, message credibility, worry, and vividness, encompass multi level elements of brand rumor. We also selected product involvement as a control variable. To perform the empirical research, imaginary Korean 'Kimch' brand and related contamination rumor was created and proposed. Questionnaires were collected from 178 Korean samples. Data were collected from college students who have been experienced the focal product. College students were regarded as good subjects because they have a tendency to express their opinions in detail. PLS(partial least square) method was adopted to analyze the relations between variables in the equation model. The most widely adopted causal modeling method is LISREL. However it is poorly suited to deal with relatively small data samples and can yield not proper solutions in some cases. PLS has been developed to avoid some of these limitations and provide more reliable results. To test the reliability using SPSS 16 s/w, Cronbach alpha was examined and all the values were appropriate showing alpha values between .802 and .953. Subsequently, confirmatory factor analysis was conducted successfully. And structural equation modeling has been used to analyze the research model using smartPLS(ver. 2.0) s/w. Overall, R² of adoption of rumor is .476 and R² of intention of rumor transmission is .218. The overall model showed a satisfactory fit. The empirical results can be summarized as follows. According to the results, the variables of brand rumor characteristic such as source credibility, message credibility, worry, and vividness affect argument strength of rumor. And argument strength of rumor also affects rumor intention. On the other hand, the relationship between perceived usefulness and argument strength of rumor is not significant. The moderating effect of product involvement on the relations between argument strength of rumor and rumor W.O.M intention is not supported neither. Consequently this study suggests some managerial and academic implications. We consider some implications for corporate crisis management planning, PR and brand management. This results show marketers that rumor is a critical factor for managing strong brand assets. Also for researchers, brand rumor should become an important thesis of their interests to understand the relationship between consumer and brand. Recently many brand managers and marketers have focused on the short-term view. They just focused on strengthen the positive brand image. According to this study we suggested that effective brand management requires managing negative brand rumors with a long-term view of marketing decisions.

• Journal of Distribution Research
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• v.15 no.1
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• pp.49-71
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• 2010

Franchise businesses in South Korea have contributed to economic growth and job creation, and its growth potential remains very high. However, despite such virtues, domestic franchise businesses face many problems such as the instability of franchisor's business structure and weak financial conditions. To solve these problems, the government enacted legislation and strengthened franchise related laws. However, the strengthening of laws regulating franchisors had many side effects that interrupted the development of the franchise business. For example, legal regulations regarding franchisors have had the effect of suppressing the franchisor's leadership activities (e.g. activities such as the ability to advocate the franchisor's policies and strategies to the franchisees, in order to facilitate change and innovation). One of the main goals of the franchise business is to build cooperation between the franchisor and the franchisee for their combined success. However, franchisees can refuse to follow the franchisor's strategies because of the current state of franchise-related law and government policy. The purpose of this study to explore the effects of franchisor's leadership style on franchisee's commitment in a franchise system. We classified leadership styles according to the path-goal theory (House & Mitchell, 1974), and it was hypothesized and tested that the four leadership styles proposed by the path-goal theory (i.e. directive, supportive, participative and achievement-oriented leadership) have different effects on franchisee's commitment. Another purpose of this study to explore the how the level of franchisee's self-efficacy influences both the franchisor's leadership style and franchisee's commitment in a franchise system. Results of the present study are expected to provide important theoretical and practical implications as to the role of franchisor's leadership style, as restricted by government regulations and the franchisee's self-efficacy, which could be needed to improve the quality of the long-term relationship between the franchisor and franchisee. Quoted by Northouse(2007), one problem regarding the investigation of leadership is that there are almost as many different definitions of leadership as there are people who have tried to define it. But despite the multitude of ways in which leadership has been conceptualized, the following components can be identified as central to the phenomenon: (a) leadership is a process, (b) leadership involves influence, (c) leadership occurs in a group context, and (d) leadership involves goal attainment. Based on these components, in this study leadership is defined as a process whereby franchisor's influences a group of franchisee' to achieve a common goal. Focusing on this definition, the path-goal theory is about how leaders motivate subordinates to accomplish designated goals. Drawing heavily from research on what motivates employees, path-goal theory first appeared in the leadership literature in the early 1970s in the works of Evans (1970), House (1971), House and Dessler (1974), and House and Mitchell (1974). The stated goal of this leadership theory is to enhance employee performance and employee satisfaction by focusing on employee motivation. In brief, path-goal theory is designed to explain how leaders can help subordinates along the path to their goals by selecting specific behaviors that are best suited to subordinates' needs and to the situation in which subordinates are working (Northouse, 2007). House & Mitchell(1974) predicted that although many different leadership behaviors could have been selected to be a part of path-goal theory, this approach has so far examined directive, supportive, participative, and achievement-oriented leadership behaviors. And they suggested that leaders may exhibit any or all of these four styles with various subordinates and in different situations. However, due to restrictive government regulations, franchisors are not in a position to change their leadership style to suit their circumstances. In addition, quoted by Northouse(2007), ssubordinate characteristics determine how a leader's behavior is interpreted by subordinates in a given work context. Many researchers have focused on subordinates' needs for affiliation, preferences for structure, desires for control, and self-perceived level of task ability. In this study, we have focused on the self-perceived level of task ability, namely, the franchisee's self-efficacy. According to Bandura (1977), self-efficacy is chiefly defined as the personal attitude of one's ability to accomplish concrete tasks. Therefore, it is not an indicator of one's actual abilities, but an opinion of the extent of how one can use that ability. Thus, the judgment of maintain franchisee's commitment depends on the situation (e.g., government regulation and policy and leadership style of franchisor) and how it affects one's ability to mobilize resources to deal with the task, so even if people possess the same ability, there may be differences in self-efficacy. Figure 1 illustrates the model investigated in this study. In this model, it was hypothesized that leadership styles would affect the franchisee's commitment, and self-efficacy would moderate the relationship between leadership style and franchisee's commitment. Theoretically, quoted by Northouse(2007), the path-goal approach suggests that leaders need to choose a leadership style that best fits the needs of subordinates and the work they are doing. According to House & Mitchell (1974), the theory predicts that a directive style of leadership is best in situations in which subordinates are dogmatic and authoritarian, the task demands are ambiguous, and the organizational rule and procedures are unclear. In these situations, franchisor's directive leadership complements the work by providing guidance and psychological structure for franchisees. For work that is structured, unsatisfying, or frustrating, path-goal theory suggests that leaders should use a supportive style. Franchisor's Supportive leadership offers a sense of human touch for franchisees engaged in mundane, mechanized activity. Franchisor's participative leadership is considered best when a task is ambiguous because participation gives greater clarity to how certain paths lead to certain goals; it helps subordinates learn what actions leads to what outcome. Furthermore, House & Mitchell(1974) predicts that achievement-oriented leadership is most effective in settings in which subordinates are required to perform ambiguous tasks. Marsh and O'Neill (1984) tested the idea that organizational members' anger and decline in performance is caused by deficiencies in their level of effort and found that self-efficacy promotes accomplishment, decreases stress and negative consequences like depression and emotional instability. Based on the extant empirical findings and theoretical reasoning, we posit positive and strong relationships between the franchisor's leadership styles and the franchisee's commitment. Furthermore, the level of franchisee's self-efficacy was thought to maintain their commitment. The questionnaires sent to participants consisted of the following measures; leadership style was assessed using a 20 item 7-point likert scale developed by Indvik (1985), self-efficacy was assessed using a 24 item 6-point likert scale developed by Bandura (1977), and commitment was assessed using a 6 item 5-point likert scale developed by Morgan & Hunt (1994). Questionnaires were distributed to Korean optical franchisees in Seoul. It took about 20 days to complete the data collection. A total number of 140 questionnaires were returned and complete data were available from 137 respondents. Results of multiple regression analyses testing the relationships between the each of the four styles of leadership shown by the franchisor as independent variables and franchisee's commitment as the dependent variable showed that the relationship between supportive leadership style and commitment ($\beta$=.13, p<.001),and the relationship between participative leadership style and commitment ($\beta$=.07, p<.001)were significant. However, when participants divided into high and low self-efficacy groups, results of multiple regression analyses showed that only the relationship between achievement-oriented leadership style and commitment ($\beta$=.14, p<.001) was significant in the high self-efficacy group. In the low self-efficacy group, the relationship between supportive leadership style and commitment ($\beta$=.17, p<.001),and the relationship between participative leadership style and commitment ($\beta$=.10, p<.001) were significant. The study focused on the franchisee's self-efficacy in order to explore the possibility that regulation, originally intended to protect the franchisee, may not be the most effective method to maintain the relationships in a franchise business. The key results of the data analysis regarding the moderating role of self-efficacy between leadership behavior style as proposed by path-goal and commitment theory were as follows. First, this study proposed that franchisor should apply the appropriate type of leadership behavior to strengthen the franchisees commitment because the results demonstrated that supportive and participative leadership styles by the franchisors have a positive influence on the franchisee's level of commitment. Second, it is desirable for franchisor to validate the franchisee's efforts, since the franchisee's characteristics such as self-efficacy had a substantial, positive effect on the franchisee's commitment as well as being a meaningful moderator between leadership and commitment. Third, the results as a whole imply that the government should provide institutional support, namely to put the franchisor in a position to clearly identify the characteristics of their franchisees and provide reasonable means to administer the franchisees to achieve the company's goal.

• Journal of Global Scholars of Marketing Science
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• v.19 no.2
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• pp.53-67
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• 2009

For the last decades, service quality has been studied as one of the most important tools for a service company to compete with the other companies. Based on these past researches, it has been agreed that the service quality is a basic and powerful tool to create the competitive advantage. Due to similar reason, many service marketing practitioners have been also focused on the service quality to retain the existing consumers and collect the new consumers. However, service quality is subjectively perceived by individual consumers. Consumer evaluation of service quality can be different from each other. Especially consumers with one life-style may evaluate the service quality differently from the consumers with the other life-styles. Therefore we need to know whether there are differences in service quality perception on the categories of life-style. Life-style refers to a distinctive mode of living in its aggregate and broadest sense. It embodies the patterns that were developed and emerged from the dynamics of living in a society. Since the concept of life-style and its relationship to marketing was introduced in 1963 by William Lazer, methods of measuring the life-style and their application have been developed. Life-style has been usually used to segment the marketplace because it offers marketers a unique and important view of the market. When Life-style is combined with clustering methods, life-style segmentation can generate identifiable whole persons rather than isolated fragment. Life-style segmentation begins with people instead of products and classifies them into different life-style types, each characterized by a unique style of living based on a wide range of activities, interests, and opinions(Plummer, 1974). In this study we applies the life-style segmentation based on the AIO(Activities, Interests, and Opinions) to the consumers of the large discount stores. In Korea, the large discount store market has entered into maturity stage so that the market differentiation strategy is becoming a more critical issue to the marketing practitioners. One of the most important tools to differentiate from the competitors in large discount store market is continuously to provide service of better quality than competitors. This study tries to find answers about the following questions: 1) How can we categorize the consumer life-styles in the large discount store? 2) What are the characteristics of the categorized groups? 3) Are there any differences in service quality perception among the consumers with different life-styles 4) Are there any differences in consumer behavior among them in the large discount store? For the purpose, we collected survey data from consumers and analyzed the data with the SPSS package where we had $X^2$-test, factor analysis, ANOVA, MANOVA, and cluster analysis. The survey was made during one month in the April of 2008. Among the collected 306 copies of questionnaires, 281 copies were chosen as the effective samples for empirical analysis except 25 copies with wrong responses. To identify the life-style patterns, we used the measures employed by Kim and Kwon(1999), where 44 items on a seven-point scale were used to measure factors of the life-style patterns. The Principal Component Method was used for factor extraction, and the VARIMAX orthogonal factor rotation was employed. The 7 items showing low factor loading were eliminated. The results of the factor analysis suggested that nine factors of the life-style patterns were identified as follows: 1) the equality-of-sexes and pursuit-of-independence tendency 2) self-management tendency 3) sociable tendency 4) self-display tendency 5) degree of a dilettante life 6) pursuit-of-information tendency 7) bargain hunter tendency 8) TV preference tendency 9) pursuit-of-leisure tendency. Next, after the K-means cluster analysis was performed with nine factors of the life-style patterns, the life-styles of the respondents were classified into four groups which are named as the 'progressive practicality-oriented group', 'positive success-oriented group', 'sociable ostentation-oriented group', 'stable conservation-oriented group'. The analysis results for usage behavior between the market segments showed statistically significant differences in the frequency of usage, duration time in the store, consumer satisfaction, and loyalty. Also, we tried to investigate whether the large discount store consumers differently perceive the quality of service based upon the types of life-style. To measure the service quality of large discount store, we adapted several measurement models measuring the service quality such as SERVPERF, BCP, R-SERVPERF, R-BCP. MANOVA and One-Way ANOVA were performed to confirm the difference in service quality perception based on the market segments. The results have also shown significant differences between life-style types in service quality perception. These findings show that the large discount store marketers should consider consumer life-style as one of the most important market segments for marketing and understand the difference in service quality perception between life-style types. Our findings give important implications to marketers of large discount stores as well as life-style researchers. First, this study showed there were significant differences in consumer's service quality perception and usage behavior between the types of life-style. It provides evidence that the life-style approach can be a important basis in segmenting the large discount store market and will make consumers perceive the service quality high. Second, most previous researches on service quality have been in aggregate level. However, our results imply that the future research on service quality have to focus on segment level.