• Title/Summary/Keyword: S & T policy

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Dual Faces of Nationalism reflected in Contemporary Korean Art and Society (현대 한국미술과 민족주의란 두 개의 얼굴)

  • Choi, Tae-Man
    • The Journal of Art Theory & Practice
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    • no.4
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    • pp.145-180
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    • 2006
  • In Korea, nation and nationalism are undeniable justice, absolute virtue and moreover system of desire. From the late Chosun Dynasty when the Korean Peninsula had to survive from the critical situation of being the arena of competition, and through the colonial period under Japanese imperialism, nationalism became stronger as a logic of survival. The policy of seclusion under closed and exclusive nationalism that didn't recognize the world situation well enough, eventually gave more pain to the nation. Nationalism in colonial Korea which was as reformed nationalism and on the other hand, as intransigent, resisting nationalism. Since the purpose of this writing is not for clarifying the argument raised on Korean nationalism, there is no use mentioning how it went with the change of time. But we have to focus on the fact that the word 'nation' which appeared under the influence of popular revolution and capitalism meaning 'a group of people', was translated and understood as a racial concept for strengthening the unity of 'single-race nation with five thousand years' history. First of all, there is nationalism used to fortify the system. 'The Charter of National Education' and 'The Pledge of Allegiance' were ornaments to intensify the ruling ideology and dictatorship to militarize entire South Korea for 'settling Korean democracy' professed nationalism. Also, another ruling ideology armed with 'self-reliance' put North Korea into the state of hypnosis called nationalism. Nationalism, claiming 'nation' outwardly, but in reality, being an illuminating, instructing ideology isolating each other was indeed a body with two faces. This made 'nation' in Korea mysterious and objective through work such as. The statue commemorating patriotic forefathers' and picture of national records' in South Korea art. Nationalism used to strengthening the system encountered the magical 'single-race' and made 'ghost' being an extreme exclusion to other nations. We can find pedigreed pureness not allowing any mixed breeds from the attitude accepting western art -via Japan or directly- and making it vague by using the word Korean and Asia. There's nationalism as a resistant ideology to solidify the system on the other side. It came out as a way of survival among the Great Power and grew with the task of national liberation to became as a powerful force facing against the dictatorship dominating South Korea after the liberation. This discussion of nationalism as a resistance ideology was active in 1980s. In 1980, democracy movement against the dictatorship of 5th Republic originated from military power which came out suppressing the democratic movement in Gwangju, spread out from the intellects and the students to the labors, farmers and the civilians. It is well known that the 'Nation-People(Minjoong)'s Art Movement could come out under this social condition. Our attitude toward nationalism is still dual in this opening part of 21st century. On one hand, they are opposing to the ultra-nationalism but are not able to separate it from nationalism, and on the other, they have much confusion using it. In fact, in a single-race nation like Korea, the situation of being nationalism and jus sanguinis together can cause dual nationalism. Though nationalism is included in the globalization order, it is evidence that it's effective in Korea where there are still modern fetters like division and separation. In particular, in the world where Japan makes East Asia Coalition but exposed in front of nationalism, and China not being free from Sinocentrism, and American nationalism taking the world order, and Russia fortifying nationalism suppressing the minority race after the dissolution of socialism, Korean nationalism is at the point to find an alternative plan superior to the ruling and resisting ideology.

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The Effects of Consumer Value Cognition on Benefits and Attributes of Culture-Art Products (문화예술상품 소비자의 가치인식이 추구혜택과 상품속성에 미치는 영향)

  • Shin, Eun Joo;Rhee, Young Sun
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.177-207
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    • 2012
  • Today's consumers perceive consumption as a representation of themselves. It is not simply an act that fulfills a consumer's physical and practical needs. Even in terms of life quality, consumers increasingly want to achieve an emotional and sensible experience through consumption. Consumers now make decisions based on their need to express their position in relation to other people, pursue emotional satisfaction, and try to improve the quality of life. Culture-art products that meet such internal and external demands of consumers have made significant improvements in both quantity and quality, because of the social interest and policy support. The recognition of personal and social values of culture and arts has brought about interest in and need for culture-art products. Businesses have agilely embraced such change and actively implemented various marketing strategies utilizing culture and arts. For example, businesses began to sponsor artists who produce culture-art products while building facilities for cultural and art performances or exhibitions. Businesses have also provided performances and exhibitions free-of-charge or at affordable prices. As a result, the supply in the market has started to exceed its demand as is often the case in many of other markets. However, such imbalance has occurred not because of over-supply but because of a lack of demand. Given these circumstances, the government and culture and art related organizations, which had mainly concentrated on the supply side, started to recognize the importance of creating personal and social values in culture and arts. As a result, the government and various organizations are now creating various strategies that include policy measures to achieve their new found goal. Unfortunately however, such efforts are not meeting the expectations. Focusing on above-mentioned circumstances and problems, this study aims to find measures to create demand for culture-art products in the internal conditions of those who consume culture-art products. In other words, given that the demand for culture-art products has not increased despite all external conditions to encourage consumption, this study aims to find the reasons in consumers' value judgment on culture-art products. Though there were recent studies on culture-art products that applied consumer behavior on marketing theories, most of them focused on peripheral aspects such as people's motivation for or satisfaction from watching culture-art events. Hence, there is a need to understand what kind of value consumers perceive from culture-art products and how such value cognition leads to consumption in a comprehensive manner. This study acts as follow-up to a separate study entitled "Qualitative Study about Value Cognition and Benefits of Consumer on Culture-Art Products". The current study aims to extend practical implications that enhance the effectiveness of marketing strategies among the producing and policy agencies in the industry. The purpose of this study is to investigate dimensions of value cognition, benefits and attributes of culture-art products, and identify the effects of consumer value cognition on benefits and attributes. The questionnaire was developed based on the conceptual structure of qualitative research and previous researches. It was composed of value cognition, benefits, attributes of culture-art products and demographic variables. This survey was conducted on-line and off-line among a total of 662 persons ranging from their teens to their 50's who were living in Seoul, Gyeonggi-do, various metropolitan cities, and small and medium-sized cities. The data collected was analyzed by factor analysis and path analysis using SPSS WIN 18.0 and AMOS 16.0. This empirical study found that the dimensions of value cognition of culture-art products were categorized into personal goods, aesthetic goods and public property. This shows that the consumers perceive culture-art products as products that are worthy enough to pay the costs not just for personal benefits but also for their social values. Also the formation of value cognition for culture-art products requires special conditions unlike that for physical consumer goods and services, which simply require marketing stimuli. The dimensions of benefits pursued by consuming culture-art products were found to be composed of four types - pursuit of aesthetic benefits, pursuit of actual benefits, pursuit of emotional benefits, and pursuit of conspicuous character. This result implies that people consume culture-art products not just to pursue pleasure from emotional and intelligent satisfaction as well as social relations, but also to seek the needs and benefits embodied at a social level. The dimensions of attributes of culture-art products had seven different factors, - environmental, price, evaluation, people, artwork, composition, and personal relations - which is plentiful. This is because the attributes of culture-art products are very complicated compared to other consumer goods or services. Since culture-art products include not just cultural or artistic works but also all physical, human, environmental, and systemic elements of the products in a comprehensive manner, consumers perceive everything they experience in the process of consuming culture-art products as part of the products. The dimensions of value cognition was found to affect attributes of the products, mostly using pursued benefits as a mediating factors. This result is consistent with the result of qualitative research, and proves that applying the means-end chain theory in the reverse direction is reasonable. The result can be interpreted that consumers' value cognitions for culture-art products turns into actual benefits leading to consumers' decisions. Furthermore, this result reveals that when consumers choose culture-art products, they take into account the attributes of culture-art products depending on the benefits they pursue. These results confirm that despite their conceptual and abstract attributes, culture-art products have values that contribute to actual benefits for individual consumers and society. Hence, value cognition generates benefits to be pursued and this in turn affects the consumers' choices of attributes on products. Based on the conceptual structure of consumers' value cognitions on culture-art products and its dimensions, it is possible to find detailed methods to provide opportunities for education and training to form and reinforce positive value cognition on culture-art products. And through those methods, it will be possible to develop attributes of culture-art products according to the dimensions of pursued benefits, and allow conceptual products become the subject to valuable consumption in real life. These results provide theoretical understanding of consumer behavior in culture marketing and useful information to culture-art producers, companies that use culture and art, and government agencies that use culture-art as a mean to improve the public perception of quality of life. As a follow up on this study, there should be experimental studies that can develop criteria visualizing the demands of consumers who purchase culture-art products and identify their detailed attributes. Studies that compare characteristics of different areas within the culture-art product category and in-depth studies on a specific area or genre will also be needed. In order to develop marketing strategies for culture-art products, studies on the formation and reinforcement of positive value cognition on culture-art products and education for the development of consumer demand as well as on the development and differentiation of attributes of culture-art products depending on types of consumer groups should also follow.

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A survey on the habit of dieting and food constrained by superstition (식습관(食習慣)과 금기식(禁忌食)에 관(關)한 조사(調査))

  • Lee, Geum-Yeong;Suh, Myung-Sook
    • Journal of the Korean Society of Food Science and Nutrition
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    • v.2 no.1
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    • pp.73-80
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    • 1973
  • 1. Generally speaking, our people have been carrying out the government policy of using grains other than rice comparatively well. But it is desirable that the government heirs the whole nation as well as the farmers to understand better the scientific meaning of using foods made from the flour of various grains. This will greatly improve the nation's eating habits, for it will make people discard the habit of eating only boiled-rice, which will not only improve our national health but will also increase the national income. 2. For the purpose of improving health and developing intellectual faculties of our mind, we had better, if possible, get much protein from plants(especially beans) which we can obtain more readily than from animals. However if we must use animal protein, we should dependonly on livestock. Pregnant women and new-born children must not be in ill health because of malnutrition caused by following groundless superstitions about foods: for example, some religions forbid the use very healthful foods or some traditional conventions do the blend of certain foods together with other victuals. 3. It is good that we conquer the difficulty of living in the season of spring poverty by having other substitute for regular victuals. But it requires us to pay a careful attention to the food and to do research on many foods problems such as food pollution. Farmers should cooperate with each other and help those who have very little arable land, or even those who have no place for cultivating, to grow miscellaneous cereals on the land which other farmers don't use that year. 4. On the whole, farmers have a good appetite for any, food, whatever it is. Neverthless, because they aren't econmically well-off, they generally eat hot meals only for breakfast and supper in the busy faming season. They eat a tepid lunch which, they think saves time and cooking fuel. In conclution, I feel sorry that many village farmers still steeped in conventional thought and superstition are inclined to have an unbalanced diet of boiled-rice and that they continue not to use the floor from other grains all the year round. when these unscientific dieting customs mentioned above are discarded, we will be able to enjoy good health, better knowledge or intellegence, and higher income. Then we will ba able to make our present lives more self-reliant and self-supporting.

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Estimation of the Expected Socio-economic Benefits of the Largescale Comprehensive Agricultural Development Project and Jointcost Allocation -In the Case of Kumgang Project Area- (대단위 농업종합개발사업의 사회경제적 기대편익 추정과 결합비용의 배분 -금강지구를 중심으로-)

  • Lim, Jae Hwan
    • Korean Journal of Agricultural Science
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    • v.23 no.1
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    • pp.159-176
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    • 1996
  • This study is aimed at reviewing the methods of joint cost allocation and allocating the joint cost of estuary dam with specially repect to Kumgang Large-scale Agricultural Comprehensive Development Project. Apart from the water resource development project propelled by Water Resource Development Corporation in connection with Law of Multipurpose Dam Development, the Largescale Comprehensive Agricultural Development Projects couldn't ins-titutionally be carried out cost allocation of common facilities, even though it were concerned with irrigation, municipal and industrical water supply, flood control, sightseeing and industrial zone development components. To decrease farmer's burden of the project costs and, operation and maintenance costs, the joint costs of common facilities like estuary dam included in agricultural development projects have to be allocated by suitable method as alternative cost-remaining benefit method and the analytical activity should be supported by revising the concerned laws as Rural Development and Promotion and, Rural Rearrangement conpatible with the law for multipurpose dam development. Kumgang Agricultural Comprehensive Development Project was selected as a case study for the estimation of socio-economic benefits by project components and joint cost allocation of the estuary dam. The main results of the study are as follows; Joint cost allocation and unit charges by components 1. The project area will be 25,554ha with total project cost of 624,860 million won including the estuary dam cost of 120,843 million won. The project costs were ex-pressed by 1994 constant price. 2. Total quantity of water was estimated 365 million tons which were consisted of 245 million tons for irrigation, 73 million tons for municipal water and 47 million tons for industrial water. 3. The rates of joint cost allocation were amounted to 34.2% for agriculture, 2.5% for sightseeing, 45.7% for transportation, 11.8% for M & I water supply and 5.8% for flood control respectively. 4. The unit financial charges by project components were estimated at 7.88 won per ton for irrigation, 16.11won for M & I water, 1,686won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The financial charges using straitline method for depreciation were estimated at 7.88won per ton for irrigation, 9.12won per ton for M & I water, 624won per vehicle one pass for transportation and 331won per Pyeong for sightseeing area. 5. The unit economic charges by project components were estimated at 21.1 won per ton for irrigation, 15.2won for M & I water, 977won per vehicle one pass, 977won per Pyeong according to the capital recovery method. The economic charges using straitline method for depreciation were estimated at 11.72won per ton for irrigation, 8.61won per ton for M & I water, 331won per vehicle one pass for transportation. Policy recommendation 1. The unit operation and maintenance costs for irrigation water in the paddy field couldn't be imposed as the water resource cost untreated. 2. The dam costs including investment cost and O & M cost, as a joint cost, had to be allocated by each benefited components as transportation, M & I water supply, flood control, irrigation and drainage, and sightseeing. But the agricultural comprehensive project have been dealt as an irrigation project without any appraisal socio-economic benefits and any allocating the joint cost of estuary dam. 3. All the associated project benefits and costs must be evaluated based on accounting principle and rent recovery rate of the project costs and O & M costs should be regulated by the laws concerned. 4. The rural development and promotion law and rural rearrangement law have to be revised comprising joint cost allocation considering free rider problems. 5. The government subsidy for the agricultural base development project has to be covered all the project costs. In case of common facilities representing joint cost allocation problems, all the allocated casts for other purposes like transportation and M & I water supply etc. should be recovered for formation in investment fund for agricultural base development and to procure O & M costs for irrigation facilities.

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Trend in Paternal Childcare Time for Preschool Children in Korea from 2004 to 2019 (아버지의 미취학자녀 돌봄시간 변화 추이 분석(2004-2019))

  • Lee, Jung-eun;Seo, Jiwon
    • Journal of Family Resource Management and Policy Review
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    • v.25 no.3
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    • pp.103-120
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    • 2021
  • Recently, the importance of the fathers role in the care of young children has been emphasized in Korea for the balance of childcare responsibilities between mothers and fathers. This study investigates the trends in paternal childcare in Korea over the last 15 years. Childcare is divided into primary and developmental care and fathers's Childcare time and participation rates are inverstigated for dual- and single-income households. Data are collected from the four waves of the five-yearly Statistics of Korea Life Time Surveys between 2004(t1) and 2019(t4) including the workday time diaries of fathers with preschool children(n1=2,264, n2=1,242, n3=959, n4=952). Three major results are identified. First, paternal childcare time and participation rates have increased with dual-income fathers spending 24 more minutes a day with their young child(ren) in 2019 than in 2004, which is nearly double. Second, in the analysis of fathers' childcare time use and participation rates comparing primary and developmental care, primary care is found to have increased more than developmental care, especially among dual income fathers: this further exhibits a reversed relation between primary and developmental care over time. Third, the determinants of paternal childcare time are fathers' age, market labor time, commuting time, gender equality consciousness, and education. In particular, market labor time was significant in all four waves, while gender equality consciousness is only significant for single-income fathers. Based on these results, a specific agenda is provided for family-friendly policies to improve the balance of childcare roles between fathers and mothers, especially encouraging increased(significant and sufficient) participation of fathers in primary care activities.

A Case Study on High and Low Performance Areas for Family Planning (가족계획 우수.부진지역 사례연구)

  • 홍성열;김태일
    • Korea journal of population studies
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    • v.4 no.1
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    • pp.105-130
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    • 1981
  • This study was conducted to compare the characteristics of high performane areas for family planning with that of low performance areas and to find factors which strongly affected contraceptive practice behavior. For the study, eight areas were selected from 274 rural family planning canvassing areas of Korean Population Policy and Program Evaluation Study, which was an action study operated in all areas of Cheju Island from July 1, 1976 until December 31,1979. As a first step of the action study, Cheju Island was devided up 318 family planning canvasser areas Each area was consisted of 200 households in rural district and 300 households in urhan one Duriog the period of project, each canvassing area had been managed by a female family planning canvasser, selected by director of health center considering several individual conditions needed for family planning activities Basic activities of canvassers were to counsell all the eligihie couples in own charged area about family planning methods and also to distribute contraceptives such as condoms and oral pills. In case couples desire to accept sterilization including vasectomy and tubal-ligation, the canvassers played a linking role connecting potential client with family planning field workers. Canvassng areas shows significant differentce in performance for family planning, nevertheless they are supposed to have almost the same conditions regarding family planning distribution channel. Because the purpose of the Cheju project was to eliminate all the problems that existed in governmental distribution system, that is to remove geographic, economic, cognitive and administrative barriers Accumulated performances of family planning methods accepted by residents in each area were calculated by eligible women aged 14-49. And then canvassing areas were ranked according to performance score. Consequently, 4 areas in extremely high and low family planning performance areas were selected respectively. Major results were obtained by comparing characteristics of high performance area with that of low performance areas, which are as follows: 1. The mean number of living children was about the same both in high and low performance areas for family planning. But respondents' mean age (38.5) in high performance areas was higher than that (37.0) in low performance areas 2. Respondents' perception in the expectant educational level of others' children in high performance areas was higher than that in low performance areas, although respondents educational level, monthly expenditure and ratio of children in high school and above was not different. 3. Ratio of ownerships of TV and newspaper in high performance areas was highen than that in low performance areas 4. The duration of canvasser' charge in high performance areas was longer than that of low performance areas, showing the fact that canvassers didn't move cut in high performance areas 5. In high performance areas, canvassers' houses were relatively located in the center part of the village. And so villagers resided in near distances from the anvasser's house 6. 4H clubs' activities in high performance areas were more active than those in low performance areas Therefore it was assumed that cohesiveness of community in high performance areas were stronger than that in low areas. 7. Canvassers' family planning practice rate was higher than that in low performance areas, and also canvassers' human relationship was more sociable than that of canvassers in low performance areas. 8. Fourteen variables which showed relatively high significance level in $X^2$ and F test were selected as independent variables for stepwise regression analysis. According to the results of regression analysis. five of 14 variables-distributors education level ($R^2$=.4439), duration of distributor's charge ($R^2$=.6166), 4H club activities ($R^2$=.6697), canvasser's contraceptive practice ($R^2$=.7377) and location of distributions house ($R^2$=.8010) explained 80.1 percent of total variance.

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Management of Naturalized Citizens from Yeozin and Its Limitation Through the Event of Guilsang(吉尙) in the Early 17th Century - Centering on 『Naturalization Registration』 (길상사건(吉尙事件)을 통해 본 17세기 초 향화호인(向化胡人) 관리 실태와 한계 - 『향화인등록(向化人謄錄)』을 중심으로 -)

  • Yi, Sun Hui
    • (The)Study of the Eastern Classic
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    • no.37
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    • pp.93-126
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    • 2009
  • This study is about a event, which happened on January of 1603 in Hamheung. It has covered from the beginning through the conclusion of the event. The event was ignited by a naturalized citizen, Guilsang's coming to the capital city without permission from the government. With this study I've wished to find the situations of specific management of naturalized citizens as well as popular attitudes towards them at the time. Concerning with the event of Guilsang, I could find more detailed situations from "Naturalization Registration". The reason why Guilsang came to Seoul was that he wanted to ask for living together with his son-in-law's family in Yang-Ju. Before his coming, Bie-Byun-Sa had sent a official letter to the governor of Hamkyung-Do so that he had had to move somewhere between Anbyun and Yung-heung. But Guilsang had wanted to live with his whole family in Seoul. The place he visited first was Sa-Yuk-Won. He presented his petition through Yeozin language translator there. Sa-Yuk-Won then informed Ye-Jo to have him investigated. After its investigation, Ye-Jo reported to the king. There were arguments about Guilsang family in the government. Guilsang had wanted to live with his whole family, including his relatives and son-in-law. Guilsang's request had more pros than cons in terms of humanism. But letting him live in Seoul was a difficult decision for the government. but his family strenuously insisted on living in Seoul, trying to kill itself. Finally Government selected Yong-In which was a compromise between the naturalized citizens' wish and difficult position of Government. Yong-In Miejo-Hyun was a poor region where naturalized citizens had lived before but now empty after the wars. In the process of the event of Guilsang, Government differentiated naturalized citizens from general citizens and regarded them foreign. A man from Yeozin was naturalized due to economic reason. But, he couldn't accept to live somewhere except Seoul, separating from his family. Government concerned with dangers of naturalized citizen becoming into foreign agents and stabilization of borders. These concerns caused the policy of residential control and decentralization of naturalized citizens failed.

Thought of ChunChu and a practical solution of Song Joon Kil (동춘당 송준길의 춘추정신과 현실 대응)

  • Kim, Moon Joon
    • The Journal of Korean Philosophical History
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    • no.50
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    • pp.37-74
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    • 2016
  • Song Joon Kil(宋浚吉, 1606-1672) intended to establish the subjectivity of people as a "Great Justice". He declared that at that time "Great Justice" was meant to respect 'Ming(明)' and reject 'Ching'(淸). He understood 'Ching' as a country which destroyed the human community and reasoned that if we put Ching's uncivilized behavior out of our mind in favor of the pursuit of present existence and merits, a temporary peace may be got but eternal peace and stability would not be achieved. 'Ming' doesn't refer only to the name of a country, but a country with the capacity to perform 'humanity and justice' with a human culture. On the other hand, he considered 'Ching' to signify the uncivilised country that destroyed or repressed the humanity and peaceful order of the world. He thought the international order can only be maintained under the organization respectful and protective of humanity. He believed a country should act to unify the whole world guaranteeing life and stability. He possessed this cultivated spirit which acted to protect the civilised world from the perils of an uncivilised world. But because of the great famine for a lot of years and the international state(Ming was regressing, and Ching was continuing to make rapid strides) was timely unsuitable to revenge and to wash the shame off. So Song propeled to stabilize the government and to strengthen the national ethics. Song focused on administering the domestic affairs. To him a high priority was a internal affairs, and a low priority was a external affairs[military aggression]. Song considered 'providing for the welfare of the people'(安民) before 'pushing ahead with military aggression'(外攘). And a high priority was 'restoring the people'(養民), a low priority was 'the military affairs'(治兵). Song regarded 'domestic affairs'(內治) as a fundamental affairs. He putted 'to nurse people'(養民) and 'to straighten King's mind'(格君心) first, than 'to buildup military'. His foreign policy was 'respecting Ming' and 'rejecting Ching'. Song was bothered about defining Chosun dynasty's moral obligations to the southern Ming government(1644~46) at Nanjing at that time.

Factors Influencing Korean International Adoptee's Search for Their Birthparents (국외입양인의 뿌리찾기에 영향을 미치는 요인)

  • Kwon, Ji-sung;Ahn, Jae-jin
    • Korean Journal of Social Welfare Studies
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    • v.41 no.4
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    • pp.369-393
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    • 2010
  • This study examines the factors influencing Korean international adoptee's search for their birthparents. Considering that the search for birthparents is general needs for adoptees, Korean government should support their searching activities and, first of all, understand their characteristics. The research model was constructed based on the results of previous studies, and the data set of conducted by ministry of health and welfare was reanalyzed for this study. The subjects of the survey were Korean-born adoptees (who are more than 16 years old) in North America, Europe, and Australia. The research questionnaire was translated to English and French, and the survey was conducted on line. A total of 290 questionnaires were included in the analysis. Since survey was conducted on line, the missing rate of the data was relatively high. So, multiply imputed five data sets were used for analysis. Among the variables included in research model, the age group of adoptees, experience of identity crisis in their life, the first time when they became actively interested in Korean roots, the age at the time of adoption, and the attitudes of adoptive parents toward their search were significantly related to their search for birthparents. Adoptees in the age group of 30~34 had more actively participated in search compared to their reference group (which is the age group of more than 35 years old). The earlier they became actively interested in Korean roots, they tended to be more active in searching activities. Also, the experience of identity crisis in life and the age at the time of adoption were positively related to their search. Although most of adoptive parents have supported their search, the adoptees who reported that they didn't know their adoptive parents' attitude toward search, or their parents deceased had more actively participated in search for their birthparents. Some implications for adoption policy and practice were discussed based on the results of the study.

A New Exploratory Research on Franchisor's Provision of Exclusive Territories (가맹본부의 배타적 영업지역보호에 대한 탐색적 연구)

  • Lim, Young-Kyun;Lee, Su-Dong;Kim, Ju-Young
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.37-63
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    • 2012
  • In franchise business, exclusive sales territory (sometimes EST in table) protection is a very important issue from an economic, social and political point of view. It affects the growth and survival of both franchisor and franchisee and often raises issues of social and political conflicts. When franchisee is not familiar with related laws and regulations, franchisor has high chance to utilize it. Exclusive sales territory protection by the manufacturer and distributors (wholesalers or retailers) means sales area restriction by which only certain distributors have right to sell products or services. The distributor, who has been granted exclusive sales territories, can protect its own territory, whereas he may be prohibited from entering in other regions. Even though exclusive sales territory is a quite critical problem in franchise business, there is not much rigorous research about the reason, results, evaluation, and future direction based on empirical data. This paper tries to address this problem not only from logical and nomological validity, but from empirical validation. While we purse an empirical analysis, we take into account the difficulties of real data collection and statistical analysis techniques. We use a set of disclosure document data collected by Korea Fair Trade Commission, instead of conventional survey method which is usually criticized for its measurement error. Existing theories about exclusive sales territory can be summarized into two groups as shown in the table below. The first one is about the effectiveness of exclusive sales territory from both franchisor and franchisee point of view. In fact, output of exclusive sales territory can be positive for franchisors but negative for franchisees. Also, it can be positive in terms of sales but negative in terms of profit. Therefore, variables and viewpoints should be set properly. The other one is about the motive or reason why exclusive sales territory is protected. The reasons can be classified into four groups - industry characteristics, franchise systems characteristics, capability to maintain exclusive sales territory, and strategic decision. Within four groups of reasons, there are more specific variables and theories as below. Based on these theories, we develop nine hypotheses which are briefly shown in the last table below with the results. In order to validate the hypothesis, data is collected from government (FTC) homepage which is open source. The sample consists of 1,896 franchisors and it contains about three year operation data, from 2006 to 2008. Within the samples, 627 have exclusive sales territory protection policy and the one with exclusive sales territory policy is not evenly distributed over 19 representative industries. Additional data are also collected from another government agency homepage, like Statistics Korea. Also, we combine data from various secondary sources to create meaningful variables as shown in the table below. All variables are dichotomized by mean or median split if they are not inherently dichotomized by its definition, since each hypothesis is composed by multiple variables and there is no solid statistical technique to incorporate all these conditions to test the hypotheses. This paper uses a simple chi-square test because hypotheses and theories are built upon quite specific conditions such as industry type, economic condition, company history and various strategic purposes. It is almost impossible to find all those samples to satisfy them and it can't be manipulated in experimental settings. However, more advanced statistical techniques are very good on clean data without exogenous variables, but not good with real complex data. The chi-square test is applied in a way that samples are grouped into four with two criteria, whether they use exclusive sales territory protection or not, and whether they satisfy conditions of each hypothesis. So the proportion of sample franchisors which satisfy conditions and protect exclusive sales territory, does significantly exceed the proportion of samples that satisfy condition and do not protect. In fact, chi-square test is equivalent with the Poisson regression which allows more flexible application. As results, only three hypotheses are accepted. When attitude toward the risk is high so loyalty fee is determined according to sales performance, EST protection makes poor results as expected. And when franchisor protects EST in order to recruit franchisee easily, EST protection makes better results. Also, when EST protection is to improve the efficiency of franchise system as a whole, it shows better performances. High efficiency is achieved as EST prohibits the free riding of franchisee who exploits other's marketing efforts, and it encourages proper investments and distributes franchisee into multiple regions evenly. Other hypotheses are not supported in the results of significance testing. Exclusive sales territory should be protected from proper motives and administered for mutual benefits. Legal restrictions driven by the government agency like FTC could be misused and cause mis-understandings. So there need more careful monitoring on real practices and more rigorous studies by both academicians and practitioners.

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