The purpose of this research is to construct research framework for international franchising based on existing literature and to identify research components in the framework. Franchise can be defined as management styles that allow franchisee use various management assets of franchisor in order to make or sell product or service. It can be divided into product distribution franchise that is designed to sell products and business format franchise that is designed for running it as business whatever its form is. International franchising can be defined as a way of internationalization of franchisor to foreign country by providing its business format or package to franchisee of host country. International franchising is growing fast for last four decades but academic research on this is quite limited. Especially in Korea, research about international franchising is carried out on by case study format with single case or empirical study format with survey based on domestic franchise theory. Therefore, this paper tries to review existing literature on international franchising research, providing research framework, and then stimulating new research on this field. International franchising research components include motives and environmental factors for decision of expanding to international franchising, entrance modes and development plan for international franchising, contracts and management strategy of international franchising, and various performance measures from different perspectives. First, motives of international franchising are fee collection from franchisee. Also it provides easier way to expanding to foreign country. The other motives including increase total sales volume, occupying better strategic position, getting quality resources, and improving efficiency. Environmental factors that facilitating international franchising encompasses economic condition, trend, and legal or political factors in host and/or home countries. In addition, control power and risk management capability of franchisor plays critical role in successful franchising contract. Final decision to enter foreign country via franchising is determined by numerous factors like history, size, growth, competitiveness, management system, bonding capability, industry characteristics of franchisor. After deciding to enter into foreign country, franchisor needs to set entrance modes of international franchising. Within contractual mode, there are master franchising and area developing franchising, licensing, direct franchising, and joint venture. Theories about entrance mode selection contain concepts of efficiency, knowledge-based approach, competence-based approach, agent theory, and governance cost. The next step after entrance decision is operation strategy. Operation strategy starts with selecting a target city and a target country for franchising. In order to finding, screening targets, franchisor needs to collect information about candidates. Critical information includes brand patent, commercial laws, regulations, market conditions, country risk, and industry analysis. After selecting a target city in target country, franchisor needs to select franchisee, in other word, partner. The first important criteria for selecting partners are financial credibility and capability, possession of real estate. And cultural similarity and knowledge about franchisor and/or home country are also recognized as critical criteria. The most important element in operating strategy is legal document between franchisor and franchisee with home and host countries. Terms and conditions in legal documents give objective information about characteristics of franchising agreement for academic research. Legal documents have definitions of terminology, territory and exclusivity, agreement of term, initial fee, continuing fees, clearing currency, and rights about sub-franchising. Also, legal documents could have terms about softer elements like training program and operation manual. And harder elements like law competent court and terms of expiration. Next element in operating strategy is about product and service. Especially for business format franchising, product/service deliverable, benefit communicators, system identifiers (architectural features), and format facilitators are listed for product/service strategic elements. Another important decision on product/service is standardization vs. customization. The rationale behind standardization is cost reduction, efficiency, consistency, image congruence, brand awareness, and competitiveness on price. Also standardization enables large scale R&D and innovative change in management style. Another element in operating strategy is control management. The simple way to control franchise contract is relying on legal terms, contractual control system. There are other control systems, administrative control system and ethical control system. Contractual control system is a coercive source of power, but franchisor usually doesn't want to use legal power since it doesn't help to build up positive relationship. Instead, self-regulation is widely used. Administrative control system uses control mechanism from ordinary work relationship. Its main component is supporting activities to franchisee and communication method. For example, franchisor provides advertising, training, manual, and delivery, then franchisee follows franchisor's direction. Another component is building franchisor's brand power. The last research element is performance factor of international franchising. Performance elements can be divided into franchisor's performance and franchisee's performance. The conceptual performance measures of franchisor are simple but not easy to obtain objectively. They are profit, sale, cost, experience, and brand power. The performance measures of franchisee are mostly about benefits of host country. They contain small business development, promotion of employment, introduction of new business model, and level up technology status. There are indirect benefits, like increase of tax, refinement of corporate citizenship, regional economic clustering, and improvement of international balance. In addition to those, host country gets socio-cultural change other than economic effects. It includes demographic change, social trend, customer value change, social communication, and social globalization. Sometimes it is called as westernization or McDonaldization of society. In addition, the paper reviews on theories that have been frequently applied to international franchising research, such as agent theory, resource-based view, transaction cost theory, organizational learning theory, and international expansion theories. Resource based theory is used in strategic decision based on resources, like decision about entrance and cooperation depending on resources of franchisee and franchisor. Transaction cost theory can be applied in determination of mutual trust or satisfaction of franchising players. Agent theory tries to explain strategic decision for reducing problem caused by utilizing agent, for example research on control system in franchising agreements. Organizational Learning theory is relatively new in franchising research. It assumes organization tries to maximize performance and learning of organization. In addition, Internalization theory advocates strategic decision of direct investment for removing inefficiency of market transaction and is applied in research on terms of contract. And oligopolistic competition theory is used to explain various entry modes for international expansion. Competency theory support strategic decision of utilizing key competitive advantage. Furthermore, research methodologies including qualitative and quantitative methodologies are suggested for more rigorous international franchising research. Quantitative research needs more real data other than survey data which is usually respondent's judgment. In order to verify theory more rigorously, research based on real data is essential. However, real quantitative data is quite hard to get. The qualitative research other than single case study is also highly recommended. Since international franchising has limited number of applications, scientific research based on grounded theory and ethnography study can be used. Scientific case study is differentiated with single case study on its data collection method and analysis method. The key concept is triangulation in measurement, logical coding and comparison. Finally, it provides overall research direction for international franchising after summarizing research trend in Korea. International franchising research in Korea has two different types, one is for studying Korean franchisor going overseas and the other is for Korean franchisee of foreign franchisor. Among research on Korean franchisor, two common patterns are observed. First of all, they usually deal with success story of one franchisor. The other common pattern is that they focus on same industry and country. Therefore, international franchise research needs to extend their focus to broader subjects with scientific research methodology as well as development of new theory.
Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.
shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
shows various market conditions captured by the two consumer heterogeneities.
(a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
(c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition.
summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.
illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.
Recently, use of foreign models and foreign language in advertising is a general trend in Korea even though the effect has not been well-known..Most of the previous research shows rather an opposite effect claiming marketing communication is more effective when higher congruity between marketing communication and consumer's cultural values are achieved. However, the introduction of global culture due to the expansion of new media such as Internet or cable television makes the congruity not the best choice of marketing strategy. In addition, use of highly attractive models in advertising to increase the effect of advertising is general. However, recent studies show that targeted women audience tend to compare themselves to the highly attractive models and do experience negative sentiment. Bower (2001) proved the difference between 'comparer' and 'noncomparer' when women face highly attractive models. The results show that a comparer who has an intention to compare highly attractive model (HAM) with herself has a significantly negative effect on model expertise, product argument, product evaluation and buying intention. Therefore, HAM is not always a good choice and model attractiveness plays a role in the processing other cues or changing the advertising effect from result of processing other cues. The purpose of this study is to investigate the effect of the use of foreign language on the advertising response of the audience with regard of the model attractiveness. For the empirical study, the virtual advertising using foreign models (HAM, NAM), brand names and slogans(Korean, English) were used as stimuli. The respondents of each stimulus were 75('HAM-Korean'), 75('NAM-Korean'), 66('HAM-English') and 66 ('NAM-English') respectively. To establish the effect of marketing communication, the attitude for media(AM), the attitude for product(AP), targetedness(TD), overall quality(OQ), and purchase intention(PI) with 7 point likert scale were measured. The manipulation was verified to check the difference between HAM attractiveness assessment (m=3.27) and NAM attractiveness assessment (m=5.12). The mean difference was statiscally significant (p<.05). As a result, all consequences were significantly changed with model attractiveness, and overall quality evaluation(OQ) were significantly changed with language. The interaction effect from model attractiveness and language was significant on attitude toward the product(AP) and purchase intention(PI). To analyze the difference, the mean values and standard deviation of consequences were compared. The result was more positive when model attractiveness was high for all consequences. For language effect, the assessment was more positive when English was used for OQ. Considering model attractiveness and language simultaneously, HAM-Korean was more positive for AP and PI, and NAM-English was more positive for AP and PI. In other words, the interaction effect was confirmed by model attractiveness and language. As mentioned above, use of foreign models and foreign language in advertising was explained by cultural match up hypothesis (Leclerc et al. 1994) which claimed that culture of origin effect. In other words, in advertising, use of same cultural language with the foreign model could make positive assessment for OQ. But this effect was moderated by model attractiveness. When the model attractiveness was low, the use of English makes PI high because of the effect of foreign language which supported the cultural match up hypothesis. When the model attractiveness was low, the use of Korean made AP and PI high because the effect of foreign language was diluted. It was a general notion that the visual cues got processed before (Holbrook and Moore, 1981; Sholl et al, 1995) compared to linguistic cues. Therefore, when consumers were faced HAM, so much perception was already consumed at processing visual cues making their native language of Korean to strongly and positively connected with the advertising concept. On the contrary, when consumers were faced with NAM, less perception was consumed compared to HAM, making English to accompany cultural halo effect which affected more positively. Therefore, when foreign models were employed in advertising, the language must be carefully selected according to the level of model attractiveness.
To analyze the national competitiveness of Korea leads to the conclusion that global high-tech enterprises have been playing leading and pulling roles in making Korea in line with advanced countries even though the country is lacking in various natural resources. The characteristics of these companies above are as follows; Firstly, these enterprises continue to accumulate core technologies and know-how with highly competent human resources and well-organized management. Secondly, they are well structured and equipped with information technology infrastructures which are, for example, ERP, SCM, CRM, and PLM. Among them PLM is considered to be the principal core information technology infra in manufacturing industry. The urgent task of manufacturing industry recently is to develop new products to accept various needs of consumers, and to launch the products in time to market, which requires the manufactures to be equipped with product development infra and system to upgrade product fulfillment and mass production system in a short period. The introduction of PLM System is a solution of core strategy as a manufacturer for collaboration, global development, reengineering of manufacturing system, the innovation and efficiency of manufacturing process, and product quality improvement. The purpose of this study is to analyze the success factors of introducing PLM System and its practicing effectiveness. And the results of empirical study are as follows; (1) Technical success factors positively impact system quality and user satisfaction, (2) Organizational success factors positively impact system quality, but does not impact user satisfaction, (3) Environmental success factors positively impact system quality and user satisfaction, (4) System quality positively impacts user satisfaction, (5) User satisfaction positively impacts the effectiveness of implementing PLM systems, but system quality does not impact it.
This study examines the case of living lab applied in the R&D initiatives for solving societal problems and challenges. It discusses how to use the living lab in national R&D projects. The analyzed cases are 'Develop portable fundus camera for eye disease screening test to resolve health inequalities' and 'Auto-sensing integrated system development in rural pedestrian crosswalk'. As a result of the analysis, both cases were designed as a user participatory R&D structure by utilizing living lab. In other words, living lab has operated as a system that evolves technology-products-services into an infrastructure. It can realize final demand specification, product, service improvement and demonstration through continuous interaction of end users. As a result of the case analysis, the following policy tasks can be derived. First, living lab is a new concept and it is in the early stage of implementation in Korea. Therefore, it is necessary to monitor and evaluate living lab experiments and build suitable models for Korean society by sharing cases and achievements. Second, the strategic niche management are necessary for the introduction of living lab. Third, living lab can be used as a tool to transform the existing technology acquisition centered innovation policy to the policy for customer needs and problem solving. Fourth, there is a need for flexibility and adaptability in strategy and system to correct errors that appear in the living lab processes.
Journal of the Korea Academia-Industrial cooperation Society
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v.17
no.9
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pp.647-654
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2016
In the defense industry, national security takes priority over economic sense and this has translated into high cost and long-term research and development. However, the exponential growth of technology and rapid changes in the security situation in recent years have resulted in a call for the development of systems at a low cost within a short period of time. In order to implement a modularization strategy in the field of defense, the introduction of line replaceable units in OO systems needs to be prioritized. This study selects six criteria following a literature review and prioritizes 11 modules for OO systems using the project evaluation method, Grey Relational Analysis (GRA). Based on the GRA results, the grey relational grades were derived as 0.83, 0.81 and 0.80 for the M11 (Main board), M8 (EMI module), M3 (Single board computer) modules, respectively. The cost and time of development is expected to be reduced in accordance with the grey relational grade. The results of this research could be utilized for decision making on adopting modularization in similar system development or product improvement programs (PIPs).
KSCE Journal of Civil and Environmental Engineering Research
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v.38
no.6
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pp.967-977
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2018
The problems of lack of skilled worker and poor productivity at the construction site continue to be raised, and the introduction of construction automation as one of the solutions to this has been considered. The development of various types of equipment and systems has been carried out, especially for earthwork operations with multiple construction equipment. However, the level of commercialization of developed equipment or systems is very limited. Although the single-product type of earthwork equipment has been applied to the site, the integrated type of earthwork system is still in the field testing stage. Considering these constraints, the limited budget and research period, a strategy is needed to identify which technology areas and core technologies should be developed first. In this study, the technology areas and detailed core technologies that are essential for the development of earthwork systems at the level of commercialization are set and the priority of development is determined. In addition, the earthwork system that has been developed so far is analyzed and the detailed development direction is presented based on it. The findings can be used for a decision making to set the priority for core technologies that should be developed first in the limited budget and period.
This study explores ways in which Korean companies manage a brand to become a long-run success. In particular, this study focuses on Chamisul, analyzing its marketing strategy, examining its brand life-cycle in terms of introduction, growth, and renewal. Chamisul, first introduced in 1998, has occupied the Korean liquor market as a leading brand for almost a decade. Chamisul's long-run success, in fact, depends upon a number of reasons; first, it has consistently and continuously keeps its own core brand concept and identity. Second, it has built its brand asset by strengthening its emotional ties with customers. The emotional connection that Chamisul has built is based upon the trust between the company who produces the product and the customers who recognize the benefit of drinking Chamisul. Third, the company creates various brand differentiation programs, thereby allowing its customer to get familier with the brand. Finally, the company sets up a clear management standard in Korean liquar market in order to maintain the vitality of the brand, managing Chamisul in accordance with the standard. Seen in this light, Chamisul's success reflects the marketing activities and strategies that play a fundamental role in creating and maintaining a long-run brand. Similarly, its success can be seen to be a model for brand management, telling us how to become a market leader through an effective brand management.
Introduction As consumers' purchase behavior change into a rational and practical direction, the discount store industry came to have keen competition along with rapid external growth. Therefore as a solution, distribution businesses are concentrating on developing PB(Private Brand) which can realize differentiation and profitability at the same time. And as improvement in customer loyalty beyond customer satisfaction is effective in surviving in an environment with keen competition, PB is being used as a strategic tool to improve customer loyalty. To improve loyalty among PB users, it is necessary to develop PB by examining properties of a customer group, first of all, quality level perceived by consumers should be met to obtain customer satisfaction and customer trust and consequently induce customer loyalty. To provide results of systematic analysis on relations between antecedents influenced perceived quality and variables affecting customer loyalty, this study proposed a research model based on causal relations verified in prior researches and set 16 hypotheses about relations among 9 theoretical variables. Data was collected from 400 adult customers residing in Seoul and the Metropolitan area and using large scale discount stores, among them, 375 copies were analyzed using SPSS 15.0 and Amos 7.0. The findings of the present study followed as; We ascertained that the higher company reputation, brand reputation, product experience and brand familiarity, the higher perceived quality. The study also examined the higher perceived quality, the higher customer satisfaction, customer trust and customer loyalty. The findings showed that the higher customer satisfaction and customer trust, the higher customer loyalty. As for moderating effects between PB and NB in terms of influences of perceived quality factors on perceived quality, we can ascertain that PB was higher than NB in the influences of company reputation on perceived quality while NB was higher than PB in the influences of brand reputation and brand familiarity on perceived quality. These results of empirical analysis will be useful for those concerned to do marketing activities based on a clearer understanding of antecedents and consecutive factors influenced perceived quality. At last, discussions about academical and managerial implications in these results, we suggested the limitations of this study and the future research directions. Research Model and Hypotheses Test After analyzing if antecedent variables having influence on perceived quality shows any difference between PB and NB in terms of their influences on them, the relation between variables that have influence on customer loyalty was determined as Figure 1. We established 16 hypotheses to test and hypotheses are as follows; H1-1: Perceived price has a positive effect on perceived quality. H1-2: It is expected that PB and NB would have different influence in terms of perceived price on perceived quality. H2-1: Company reputation has a positive effect on perceived quality. H2-2: It is expected that PB and NB would have different influence in terms of company reputation on perceived quality. H3-1: Brand reputation has a positive effect on perceived quality. H3-2: It is expected that PB and NB would have different influence in terms of brand reputation on perceived quality. H4-1: Product experience has a positive effect on perceived quality. H4-2: It is expected that PB and NB would have different influence in terms of product experience on perceived quality. H5-1: Brand familiarity has a positive effect on perceived quality. H5-2: It is expected that PB and NB would have different influence in terms of brand familiarity on perceived quality. H6: Perceived quality has a positive effect on customer satisfaction. H7: Perceived quality has a positive effect on customer trust. H8: Perceived quality has a positive effect on customer loyalty. H9: Customer satisfaction has a positive effect on customer trust. H10: Customer satisfaction has a positive effect on customer loyalty. H11: Customer trust has a positive effect on customer loyalty. Results from analyzing main effects of research model is shown as
, and moderating effects is shown as
. Results This study is designed with 16 research hypotheses, Results from analyzing their main effects show that 9 of 11 hypotheses were supported and other 2 hypotheses were rejected. On the other hand, results from analyzing their moderating effects show that 3 of 5 hypotheses were supported and other 2 hypotheses were rejected. H1-1: (SPC: Standardized Path Coefficient)=-0.04, t-value=-1.04, p>. 05). H1-2: (${\Delta}\chi^2$=1.10, df=1, p> 0.05). H1-1 and H1-2 are rejected, so it is prove that perceived price is not a significant decision variable having influence on perceived quality and there is no significant variable between PB and NB in terms of influence of perceived price on perceived quality. H2-1: (SPC=0.31, t-value=3.74, p<. 001). H2-2: (${\Delta}\chi^2$=3.93, df=1, p< 0.05). H2-1 and H2-2 are supported, so it is proved that company reputation is a significant decision variable having influence on perceived quality and, in terms of influence of company reputation on perceived quality, PB has relatively stronger influence than NB. H3-1: (SPC=0.26, t-value=5.30, p< .001). H3-2: (${\Delta}\chi^2$=16.81, df=1, p< 0.01). H3-1 and H3-2 are supported, so it is proved that brand reputation is a significant decision variable having influence on perceived quality and, in terms of influence of brand reputation on perceived quality, NB has relatively stronger influence than PB. H4-1: (SPC=0.31, t-value=2.65, p< .05). H4-2: (${\Delta}\chi^2$=1.26, df=1, p> 0.05). H4-1 is supported, but H4-2 is rejected, Therefore, it is proved that product experience is a significant decision variable having influence on perceived quality and, on the other hand, there is no significant different between PB and NB in terms of influence of product experience on product quality. H5-1: (SPC=0.24, t-value=3.00, p<. 05). H5-2: (${\Delta}\chi^2$=5.10, df=1, p< 0.05). H5-1 and H5-2 are supported, so it is proved that brand familiarity is a significant decision variable having influence on perceived quality and, in terms of influence of brand familiarity on perceived quality, NB has relatively stronger influence than PB. H6: (SPC=0.91, t-value=19.06, p< .001). H6 is supported, so a fact that customer satisfaction increases as perceived quality increases is proved. H7: (SPC=0.81, t-value=7.44, p<. 001). H7 is supported, so a fact that customer trust increases as perceived quality increases is proved. H8: (SPC=0.57, t-value=7.87, p< .001). H8 is supported, so a fact that customer loyalty increases as perceived quality increases is proved. H9: (SPC=0.08, t-value=0.76, p> .05). H9 is rejected, so it is proved influence of customer satisfaction on customer trust is not significant. H10: (SPC=0.21, t-value=4.34, p< .001). H10 is supported, so a fact that customer loyalty increases as customer satisfaction increases is proved. H11: (SPC=0.40, t-value=5.68, p< .001). H11 is supported, so a fact that customer loyalty increases as customer trust increases is proved. Implications Although most of existing studies have used function, price, brand, design, service, brand name, store name as antecedent variables for perceived quality, this study used different antecedent variables in order to analyze and distinguish purchase group PB and NB through preliminary research. Therefore, this study may be used as preliminary data for a empirical study that is designed to be helpful for practical jobs. Also, this study is made to be easily applied to any practical job because SEM(Structural Equation Modeling), most strongly explaining the relation between observed variable and latent variable, is used for this study. This study suggests a new strategic point that, in order to increase customer loyalty, customer's perceived quality level should satisfied for inducing customer satisfaction, customer trust, and customer loyalty. Therefore, after finding an effective differentiating factors in perceived quality in order to increase customer loyalty through increasing perceived quality, this factor was made to be applied to PB and NB. Because perceived quality factors which is recognized as being important by consumers is different between PB and NB, this study suggests how to efficiently establish marketing strategy by enhancing a factor. Companies have mostly focused on profitability in terms of analyzing customer loyalty, but this study included positive WOM(word of mouth). Hence, this study suggests that it would be helpful for establishing customer loyalty when consumers have cognitive satisfaction and emotional satisfaction together. Limitations This study used variables perceived price, company reputation, brand reputation, product experience, brand familiarity in order to determine whether each constituent factor has different influence on perceived quality between purchase group PB and NB. These characteristic variables are made up on the basis of the preliminary research, but it is expected that more precise research result would be obtained if additional various variables are included in study. This study selected a practical product that is non-durable, low-priced and bestselling product in a discount store through the preliminary research because it can be easily estimated by consumers. Therefore. generalization of study would be more easily obtained if more various product characteristics is included. Regarding a sample used in this study, it was only based on consumers who purchase products in a large-scale discount store located in Seoul and in the capital area. Accordingly, this sample has some geographical limitation, If a study is expanded by including more areas, more representative research results may be produced. Because this study is only designed to analyze consumers who purchase a product in a large-scale discount store, some difference may be found according to characteristics of each business type. In other words, there is certainly some application limitation, so research result from this study may not be applied to other business types. Future research may have fruitful results if it adjusts a variable to each business type.
Subsequent to the introduction of the "Laws on Consumption Promotion of Livestock Products" in 2002, a mandatory check-off system for the egg industry was introduced in June 2009. Unlike other livestock products, the check-off on eggs is financed not from the sale of the egg-the end product-but from the spent hen. Variables such as the falling price of spent hens lead to a low financing rate; The present farm allotment rate of 14%, introduced in 2015, is much higher than the 0.2% to 0.3% check-off rate in other types of business, thus placing a huge burden on farms. When check-off is financed from the egg, it is expected that 6.5 billion won will be raised using a rate of 0.3% of sale proceeds, Therefore, it is urgent for the government to establish infrastructure to enable producers and merchants to do business through Grade & Packing centers. This can be achieved by the staged construction of local Grade & Packing centers. Check-off should continue to be financed from the present spent hen until this infrastructure is established, and an institutional strategy should be provided by the government to raise the financing rate accurately and transparently using statistical treatment of supply data for spent hens as a short-term alternative.
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