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Categorizing Quality Features of Franchisees: In the case of Korean Food Service Industry (프랜차이즈 매장 품질요인의 속성분류: 국내 외식업을 중심으로)

  • Byun, Sook-Eun;Cho, Eun-Seong
    • Journal of Distribution Research
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    • v.16 no.1
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    • pp.95-115
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    • 2011
  • Food service is the major part of franchise business in Korea, accounting for 69.9% of the brands in the market. As the food service industry becomes mature, many franchisees have struggled to survive in the market. In general, consumers have higher levels of expectation toward service quality of franchised outlets compared that of (non-franchised) independent ones. They also tend to believe that franchisees deliver standardized service at the uniform food price, regardless of their locations. Such beliefs seem to be important reasons that consumers prefer franchised outlets to independent ones. Nevertheless, few studies examined the impact of qualify features of franchisees on customer satisfaction so far. To this end, this study examined the characteristics of various quality features of franchisees in the food service industry, regarding their relationship with customer satisfaction and dissatisfaction. The quality perception of heavy-users was also compared with that of light-users in order to find insights for developing differentiated marketing strategy for the two segments. Customer satisfaction has been understood as a one-dimensional construct while there are recent studies that insist two-dimensional nature of the construct. In this regard, Kano et al. (1984) suggested to categorize quality features of a product or service into five types, based on their relation to customer satisfaction and dissatisfaction: Must-be quality, Attractive quality, One-dimensional quality, Indifferent quality, and Reverse quality. According to the Kano model, customers are more dissatisfied when Must-be quality(M) are not fulfilled, but their satisfaction does not arise above neutral no matter how fully the quality fulfilled. In comparison, customers are more satisfied with a full provision of Attactive quality(A) but manage to accept its dysfunction. One-dimensional quality(O) results in satisfaction when fulfilled and dissatisfaction when not fulfilled. For Indifferent quality(I), its presence or absence influences neither customer satisfaction nor dissatisfaction. Lastly, Reverse quality(R) refers to the features whose high degree of achievement results in customer dissatisfaction rather than satisfaction. Meanwhile, the basic guidelines of the Kano model have a limitation in that the quality type of each feature is simply determined by calculating the mode statistics. In order to overcome such limitation, the relative importance of each feature on customer satisfaction (Better value; b) and dissatisfaction (Worse value; w) were calculated following the formulas below (Timko, 1993). The Better value indicates how much customer satisfaction is increased by providing the quality feature in question. In contrast, the Worse value indicates how much customer dissatisfaction is decreased by providing the quality feature. Better = (A + O)/(A+O+M+I) Worse = (O+M)/(A+O+M+I)(-1) An on-line survey was performed in order to understand the nature of quality features of franchisees in the food service industry by applying the Kano Model. A total of twenty quality features (refer to the Table 2) were identified as the result of literature review in franchise business and a pre-test with fifty college students in Seoul. The potential respondents of our main survey was limited to the customers who have visited more than two restaurants/stores of the same franchise brand. Survey invitation e-mails were sent out to the panels of a market research company and a total of 257 responses were used for analysis. Following the guidelines of Kano model, each of the twenty quality features was classified into one of the five types based on customers' responses to a set of questions: "(1) how do you feel if the following quality feature is fulfilled in the franchise restaurant that you visit," and "(2) how do you feel if the following quality feature is not fulfilled in the franchise restaurant that you visit." The analyses revealed that customers' dissatisfaction with franchisees is commonly associated with the poor level of cleanliness of the store (w=-0.872), kindness of the staffs(w=-0.890), conveniences such as parking lot and restroom(w=-0.669), and expertise of the staffs(w=-0.492). Such quality features were categorized as Must-be quality in this study. While standardization or uniformity across franchisees has been emphasized in franchise business, this study found that consumers are interested only in uniformity of price across franchisees(w=-0.608), but not interested in standardizations of menu items, interior designs, customer service procedures, and food tastes. Customers appeared to be more satisfied when the franchise brand has promotional events such as giveaways(b=0.767), good accessibility(b=0.699), customer loyalty programs(b=0.659), award winning history(b=0.641), and outlets in the overseas market(b=0.506). The results are summarized in a matrix form in Table 1. Better(b) and Worse(w) index indicate relative importance of each quality feature on customer satisfaction and dissatisfaction, respectively. Meanwhile, there were differences in perceiving the quality features between light users and heavy users of any specific franchise brand in the food service industry. Expertise of the staffs was labeled as Must-be quality for heavy users but Indifferent quality for light users. Light users seemed indifferent to overseas expansion of the brand and offering new menu items on a regular basis, while heavy users appeared to perceive them as Attractive quality. Such difference may come from their different levels of involvement when they eat out. The results are shown in Table 2. The findings of this study help practitioners understand the quality features they need to focus on to strengthen the competitive power in the food service market. Above all, removing the factors that cause customer dissatisfaction seems to be the most critical for franchisees. To retain loyal customers of the franchise brand, it is also recommended for franchisor to invest resources in the development of new menu items as well as training programs for the staffs. Lastly, if resources allow, promotional events, loyalty programs, overseas expansion, award-winning history can be considered as tools for attracting more customers to the business.

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The Effect of Perceived Internal Marketing and Customer Orientation on the Organizational Commitment of Nurses in Specialized Hospital (전문병원간호사가 지각한 내부 마케팅과 고객지향성이 조직몰입에 미치는 영향)

  • Lim, Kyoung-Min;Jo, Eun-Joo;Kwon, Jeong-Ok
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.17 no.3
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    • pp.489-498
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    • 2016
  • This study examined the effects of internal marketing and customer orientation on the organizational commitment of nurses in specialized hospitals. This research was conducted from May 1 to 30, 2015 and involved 149 nurses at 5 specialized hospitals in Busan, The collected data were analyzed by descriptive statistics, t-test, ANOVA, Scheffe's test, Pearson correlation coefficients, stepwise multiple regression by the SPSS WIN 18.0 program. As a result, there were significant differences in the organizational commitment according to age, marital status, education, clinical experience, position, work shift, working unit, number of beds, and experience of participation for employee satisfaction survey. Organizational commitment was positively related to the internal marketing. In addition, there was a positive correlation between the organizational commitment and customer orientation. Meaningful variables that influenced the organizational commitment were internal marketing, working unit, education, and position. The total explanation power was 58.5% and the internal marketing was the most influential factor. In conclusion, to enhance the organizational commitment of nurses working in specialized hospitals, educational opportunities need to be provided to increase the professionalism of nurses, and efforts will be needed to improve the working environment and develop internal marketing strategies, such as regular satisfaction surveys.

The Moderating Effects of Salesperson's Cultural Intelligence in Intercultural Sales Encounters (문화간 판매접점에서 판매원 문화지능의 조절효과)

  • Kong, Lan-Lan;Kim, Hyoung-Gil;Kim, Yun-Jeong
    • Journal of Distribution Science
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    • v.15 no.12
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    • pp.85-94
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    • 2017
  • Purpose - Owing to economic development and rapid globalization, the number of people traveling abroad has increased dramatically in recent years. For instance, according to data from World Tourism Organization, approximately 1,724 million tourists traveled abroad in 2016. This phenomenon has resulted in a change for domestic markets, as they no longer serve only domestic customers but also serve foreign customers as well. Therefore, intercultural service encounters between services providers and customers from diverse cultural backgrounds are becoming more frequent. Especially in the field of retailing, salesperson's customer oriented selling behavior is particularly important for the successful interactions. However, it is hard to find some factors that can improve salesperson's customer oriented selling behavior in intercultural sales encounters. Research design, data, and methodology - A quantitative survey methodology was utilized to collect data on 312 salespeople at duty-free shops located on Jeju Island, Korea. As a tourism-based region, Jeju Island has attracted a large number of foreign tourists since being designated as an international free city in 2002. Owing to this phenomenon, intercultural sales encounters between salespersons and customers from different cultures have become commonplace. Compared to other salespeople, salespeople working in duty-free shops have more frequent intercultural interactions, as over 90% of their total customers are from foreign countries. Additionally, regular professional training programs for salespeople help cultivate cultural intelligence. Data analysis was conducted using SPSS 20. Results - This paper explores the role of empathy and cultural intelligence in intercultural sales encounters using a theoretical model incorporating the causal relationships between empathy(cognitive empathy and emotional empathy) and customer oriented selling behavior, as well as the moderating effects of cultural intelligence in these relationships. Conclusions - This study is almost the first to explore the influence of empathy and cultural intelligence in intercultural sales encounters. Thus, this study provides a meaningful contribution to the application of empathy and cultural intelligence in the retailing field and will draw the attention of personal distribution practicers and researchers to the importance of empathy and cultural intelligence. Additionally, this study has useful managerial implications for employee selection, training, and development in retailing firms engaged in intercultural sales encounters.

The present possession of jeans and perception of jeans' fit among women in their 20s (20대 여성의 진 팬츠 보유 현황 및 진 팬츠 핏에 대한 지각)

  • Hong, Hye-Won;Ha, Hee-Jung
    • The Research Journal of the Costume Culture
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    • v.22 no.1
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    • pp.126-142
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    • 2014
  • This research aims to analyze jeans possession and perceptions of jeans' fit among women in their 20s to help improve the accuracy of purchase decisions in online shopping and to provide basic data necessary to overcome limits in the fit conveyance method of online shopping malls. A sample of 149 females in their 20s was divided into two groups according to height, waist size, and interest in fashion, and several factors were analyzed: jeans possession status, the fit of purchased jeans, the reason for purchase, and the perception of jeans' fit. The results are as follows. The group with a high interest in fashion owned more skinny jeans, and there was a higher frequency of purchasing skinny jeans during the last year among those with a height of 160 cm or more, a waist size of less than 27 inches, and a high interest in fashion. Of the respondents, 92.6% accurately understood skinny fit, 51.7% understood straight fit, and 56.4% understood regular fit. There was no significant difference in the perception of skinny fit or regular fit, but straight fit was better understood by the group with a waist size of 27 inches or more. Thus, by providing accurate size information and analyzing the body shapes of consumers, online shopping malls will be able to increase customer satisfaction with pants of various fits to reduce the rate of returns.

Status of Health Hygiene of Some Beauty Shop in Taegu City (대구시내 미용실의 보건위생 실태)

  • 채용곤
    • Journal of environmental and Sanitary engineering
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    • v.16 no.4
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    • pp.9-20
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    • 2001
  • The objective of this study was to improve sanitary conditions at the beauty shops by informing the owners and employees to be aware of the public health. The data were obtained by the Physical investigation (August 1 to 30, 2001) of the sanitary Problems at 112 beauty shops in Daegu Metrpolitan area and by the surveys from the employees and customers. By analysis these data with SAS/PC+(ver. 6.12) and $x^2-test$, we have obtained the following results. 1. The numbers of the beauty shop workers (67.86% of the shops) were two including the owner, and only 18.75% of the workers had the regular public health training session. Even at the training sessions, no public health specialist was available as an instructor. 2. Sanitary conditions of the floor (92.76%), washer (88.93%) and rest room (74.11%) at the beauty shops were satisfactory. However, only 3.57% of the beauty shop used the vacuum cleaner that would be far more effective than the bloom to remove hairs from the floor. 3. About 91.07% (102 shops) did not or poorly sterilize equipments, and 91.76% (103 shops) did not store the sterilized or non-sterilized equipments separately. The shops that had the ultraviolet sterilizer that is required by the public health regulation were 53.57% (60 shops), and only 2.67% (3shops) actually used it. 4. About 82.14% (72 shops) used Oxyclean and detergent for washing the fabrics such as towels and gowns. About 11.61% (13 shops) used only detergent and 3.57% (4 shops) used the boiling sterilization method. No shop used the customer gown once per customer, and only 2.68% (3 shops) washed the used gown daily.

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The change of Employee Satisfaction in Radiology Department by Applying 6 Sigma Method (6 - Sigma 경영혁신기법 시행에 따른 방사선과 내부고객만족도의 변화)

  • Lee, Keun-Ohk;Park, Jai-Soung;Kang, Chung-Hwan;Kim, Mi-Young;Kim, Seung-Sick
    • Quality Improvement in Health Care
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    • v.12 no.1
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    • pp.78-90
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    • 2006
  • Background : The concept of 'service' in a hospital is based on the quality of medical staffs who serve as customer-satisfying media, and this is what distinguishes general hospitals from other business corporations in which customer satisfaction is achieved through commercial products. Thus, the internal employee satisfaction is essential in the improvement of the 'service' and subsequent 'competitiveness' of a hospital. The purpose of this study is to establish internal marketing strategies for a general hospital through regular surveys on employee satisfaction. Method : Surveys on employee satisfaction in radiology department were conducted regularly twice a year in a university hospital with 800 beds 2001 in 2004. The subjects of this study were 35 employees who work in radiology department. The authors developed the questionnaires and the surveys were conducted initially during the first 6 months of the year. After necessary improvements were made by applying 6 Sigma techniques, subsequent surveys were conducted during the latter 6 months of the year and the degree of employee satisfaction was compared. Results : Overall satisfaction increased with a constant rate and the authors were able to assess that the hospital is being gradually stabilized. The degree of satisfaction assessed by multiple choices showed only minor changes. However, as a result of focusing on the demands put forth by the employees through the open questions, the degree of satisfaction increased gradually year after year. Conclusions : It is important to heighten the internal employee satisfaction systematically and harmoniously through the assessment on the demands of the internal customers and feedback-based communications between the management officers and the staffs. Continuous surveys on the internal employee satisfaction will serve to be valuable materials in the establishment of internal marketing strategies for a general hospital.

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A Study of Strategy plan for the Improvement on menu marketing Commoditization. (메뉴 상품 마케팅 전략방안에 관한 연구)

  • 김장익;홍철희
    • Culinary science and hospitality research
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    • v.4
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    • pp.347-367
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    • 1998
  • It is difficult to make which customers want in restaurant industry because of IMF situation. Therefore, utilization of service marketing is needed by best effect through least investment in restaurant industry. The background of restaurant industry is not directly related to the improvement of tourism industry. We should give a hand to tourism and restaurant industry by holding international events. so the way of thinking among people is changing. And importing of famous foreign brand and opening shops are accellerating the improvement of tourism and restaurant industry. In this perspective, improvement factors of restaurant industry are as follows : the increase of pst time, the increase of disposable income, the increase of woman's having jobs and double income, requirement of people about health food, the increase of nuclear family, and the change of viewpoint among people. This restaurant industry is service industry, and it sells invisible service except the aspect of selling menu. In addition, in terms of menu, price reduction strategy should be done by cost reduction and restructuring. The ultimate purpose of marketing is to increase sales and to do this we should increase the number of customers in shops. That means we should create new customers and try to attract customers who used to be regular in the shops. Therefore, the demonstration of management ability and positive reaction is really needed. So the most important things in marketing are as follows: proper strategy for double consumption, increasing the number of customers through new specific menu, menu life cycle according to menu item, menu development by considering customer, making recipe, enhancement of product quality and cost reduction by customer's opinion. We should concentrate on national menu first, and try to develop menu for international market. It is absolutely needed that we set up the menu product strategy through menu marketing with various products and constant study related to menu marketing is to be done.

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Research on Development and Customer Response of a Virtual Wedding Experience Application (가상체험 기반 웨딩 애플리케이션 개발 및 소비자 반응 조사)

  • Choi, Jin-Eun;Kim, Kyung-Hee
    • Journal of the Korean Society of Costume
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    • v.65 no.1
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    • pp.61-75
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    • 2015
  • This study is analyzes how consumers view the market leading Virtual Wedding Application in order to contribute to the development of the wedding industry in the future. The research consists of the following steps: questionnaires with detailed items were used to develop the application, the wedding application was developed, and questionnaires were used to get consumer responses. The results are as follows: 1) paid application service providing useful information is appropriate for busy consumers. 2) Regular updates regarding wedding trend are needed. 3) Augmented reality or development of HMD based virtual experience programs should be considered as virtual experience technology on smart devices evolve. 4) Wedding consumers want all kinds of instant information to be presented in harmony, so the application should allow consumers to obtain and to purchase information at the same time. 5) The application can help consumers to share the process of total wedding coordination with others around them. 6) Since people's awareness on virtual experience is relatively low, marketing strategies such as identifying the wedding application from other applications should be used as well as promoting useful functions are important.

An Integrated Control Problem of Secondary Sourcing and Inventory in A Supply Chain (공급체인에 있어서 이차원천과 재고의 통합적 통제에 관한 연구)

  • Kim, Sung-Chul
    • Journal of the Korean Operations Research and Management Science Society
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    • v.32 no.1
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    • pp.93-104
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    • 2007
  • We consider a supply chain where products are shipped to warehouse from manufacturing system to customers. Products are supplied from either in-house regular manufacturing or the secondary source such as subcontractor. The inventory in warehouse is controlled by base-stock policy, that is, whenever a demand arrives from customer, an order is released to the manufacturing system. Unsatisfied demand is backlogged. The manufacturing system is modeled as M/M/s+1/c queueing system, and the orders exceeding the given limit care blocked and lost. The steady state distribution of the outstanding orders and the throughput of the manufacturing system are functions of the level of engagement In the secondary source. There is a profit obtained from throughput and cost not only due to the engagement of the secondary source in the manufacturing system but also inventory positions. We want to maximize the total production profit minus the total cost of the production system by simultaneously determining the optimal level of engagement of the secondary source and the optimal base-stock level of the inventory. We develop two algorithms : one without guarantee of the optimal solution but with the small number of computations, the other optimal but with more computations.

A Study of Product Analysis for Incontinence Products for the Development of Urinary Incontinence Panties for Senior Male (남성 시니어 요실금팬티 설계를 위한 제품 분석 연구)

  • Koo, Mi-Ran
    • Journal of the Korea Fashion and Costume Design Association
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    • v.19 no.3
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    • pp.63-74
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    • 2017
  • This study aims to contribute to the development of male incontinence underwear with an anti-aging effect that meets customer requirements by examining the types, sorts, sizes and specifications of male incontinence underwear currently sold on the market. The results of an analysis of a total of eight commercial products are as follows. 1) Among the samples, six types of incontinence underwear were of a pull-on style like regular underwear; two types were of a pad insertion style. With respect to the underwear design, four (50%) types of incontinence underwear were brief style. The rest were drawers (3, 37.5%). Only one was of a trunk (12.5%) style. 2) With respect to size, the percentage of Size 3 was 50%, followed by Size 4 (50%). Most of the size of the underwear uses hip measurement whereas Japanese products (3, 37.5 %) use waist circumference. 3) With respect to the materials of the incontinence underwear, natural fibers such as cotton were mostly used and a polyurethane or polyester was mixed to enhance the wearing sensation and stretchability of the underwear. Finally, for the structure of the pad area, a napping finish was the largest (3, 37.5%), single knit 2(25%), twill weave 2(25%), and rib weave 1.

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