• Journal of Distribution Research
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• v.17 no.5
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• pp.1-23
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• 2012

The conflict between major corporations and small and medium-sized businesses is being aggravated, the trickle down effect is not working properly, and, as the controversy surrounding the effectiveness of the business limiting system continues to swirl, the plan proposed to protect the business domain of small and medium-sized businesses, resolve polarization between these businesses and large corporations, and protect small family run stores is the suitable business type designation system for small and medium-sized businesses. The current status of carrying out this system of selecting suitable business types among small and medium-sized businesses involves receiving applications for 234 items among the suitable business types and items from small and medium-sized businesses in manufacturing, and then selecting the items of the consultative group by analyzing and investigating the actual conditions. Suitable business type designation in the service industry will involve designation with priority on business types that are experiencing social conflict. Three major classifications of the service industry, related to the livelihood of small and medium-sized businesses, will be first designated, and subsequently this will be expanded sequentially. However, there is the concern that when designated as a suitable business type or item, this will hinder the growth motive for small to medium-sized businesses, and designation all cause decrease in consumer welfare. Also it is highly likely that it will operate as a prior regulation, cause side-effects by limiting competition systematically, and also be in violation against the main regulations of the FTA system. Moreover, it is pointed out that the system does not sufficiently reflect reverse discrimination factor against large corporations. Because conflict between small to medium sized businesses and large corporations results from the expansion of corporations to the service industry, which is unrelated to their key industry, it is necessary to introduce an advanced contract method like a master franchise or local franchise system and to develop local small to medium sized businesses through a franchise system to protect these businesses and dealers. However, this method may have an effect that contributes to stronger competitiveness of small to medium sized franchise businesses by advancing their competitiveness and operational methods a step further, but also has many negative aspects. First, as revealed by the Ministry of Knowledge Economy, the franchise industry is contributing to the strengthening of competitiveness through the economy of scale by organizing existing individual proprietors and increasing the success rate of new businesses. It is also revealed to be a response measure by the government to stabilize the economy of ordinary people and is emphasized as a 'useful way' to revitalize the service industry and improve the competitiveness of individual proprietors, and has been involved in contributions to creating jobs and expanding the domestic market by providing various services to consumers. From this viewpoint, franchises fit the purpose of the suitable business type system and is not something that is against it. Second, designation as a suitable business type may decrease investment for overseas expansion, R&D, and food safety, as well negatively affect the expansion of overseas corporations that have entered the domestic market, due to the contraction and low morale of large domestic franchise corporations that have competitiveness internationally. Also because domestic franchise businesses are hard pressed to secure competitiveness with multinational overseas franchise corporations that are operating in Korea, the system may cause difficulty for domestic franchise businesses in securing international competitiveness and also may result in reverse discrimination against these overseas franchise corporations. Third, the designation of suitable business type and item can limit the opportunity of selection for consumers who have up to now used those products and can cause a negative effect that reduces consumer welfare. Also, because there is the possibility that the range of consumer selection may be reduced when a few small to medium size businesses monopolize the market, by causing reverse discrimination between these businesses, the role of determining the utility of products must be left ot the consumer not the government. Lastly, it is desirable that this is carried out with the supplementation of deficient parts in the future, because fair trade is already secured with the enforcement of the franchise trade law and the best trade standard of the Fair Trade Commission. Overlapping regulations by the suitable business type designation is an excessive restriction in the franchise industry. Now, it is necessary to establish in the domestic franchise industry an environment where a global franchise corporation, which spreads Korean culture around the world, is capable of growing, and the active support by the government is needed. Therefore, systems that do not consider the process or background of the growth of franchise businesses and harm these businesses for the sole reason of them being large corporations must be removed. The inhibition of growth to franchise enterprises may decrease the sales of franchise stores, in some cases even bankrupt them, as well as cause other problems. Therefore the suitable business type system should not hinder large corporations, and as both small dealers and small to medium size businesses both aim at improving competitiveness and combined growth, large corporations, small dealers and small to medium sized businesses, based on their mutual cooperation, should not include franchise corporations that continue business relations with them in this system.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.1
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• pp.161-168
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• 2012

Recently, Social Commerce that provides customer with cheap deals is under the spotlight. The purpose of this study is to propose how to use social commerce on small restaurant business, which encompass almost a half of entire deals. We analyzed each element from the last transaction data of three social commerce company and survey obtained from the restaurant business. As a result, we can find that the purpose of promoting, the location of restaurant, whether is franchise or not, price and menu composition have an effect on sales of coupon. Based on these results, we proposed two step approaches to use the social commerce company. The first step is to decide whether social commerce is used or not and the second step is to define the detail content of deal including the social commerce company. We convinced that our proposed strategy is very helpful to the small restaurant which considers utilization of social commerce company.

• The Korean Journal of Franchise Management
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• v.8 no.4
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• pp.43-54
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• 2017

Purpose - Recently, the meaning and importance of entrepreneurship has been emphasized in order to achieve innovation-led economic growth through entrepreneurship. Various forms of entrepreneurship education have been established centering on universities, and the scale of the entrepreneurship support programs of the government and the private sector has been increasing. Entrepreneurial education can enhance entrepreneurship and promote entrepreneurial intention. The purpose of this study is to examine the effect of experience of entrepreneuship education and social awareness of entrepreneurship on entrepreneurial intention through entrepreneurship, focusing on women who were relatively alienated from entrepreneurial activities. This study will provide suggestions for women's entrepreneurship in the future. Research design, data, and methodology - Recently, the meaning and importance of entrepreneurship has been emphasized in order to achieve innovation-led economic growth through entrepreneurship. Various forms of entrepreneurship education have been established centering on universities, and the scale of the entrepreneurship support programs of the government and the private sector has been increasing. Entrepreneurial education can enhance entrepreneurship and promote entrepreneurial intention. The purpose of this study is to examine the effect of experience of entrepreneuship education and social awareness of entrepreneurship on entrepreneurial intention through entrepreneurship, focusing on women who were relatively alienated from entrepreneurial activities. This study will provide suggestions for women's entrepreneurship in the future. Result - Recently, the meaning and importance of entrepreneurship has been emphasized in order to achieve innovation-led economic growth through entrepreneurship. Various forms of entrepreneurship education have been established centering on universities, and the scale of the entrepreneurship support programs of the government and the private sector has been increasing. Entrepreneurial education can enhance entrepreneurship and promote entrepreneurial intention. The purpose of this study is to examine the effect of experience of entrepreneuship education and social awareness of entrepreneurship on entrepreneurial intention through entrepreneurship, focusing on women who were relatively alienated from entrepreneurial activities. This study will provide suggestions for women's entrepreneurship in the future. Conclusions - Although women's economic activity is increasing, women's activities in the field of business start-up are still passive. The purpose of this study is to examine the effect of entrepreneurship on entrepreneuship education and the social perception of entrepreneurship. As a result, we found that social awareness, entrepreneurship education, and entrepreneurship all had a significant influence on the intention of entrepreneurship. Positive social atmosphere for entrepreneurship induces interest in entrepreneurship education and forms a virtuous cycle structure that fosters entrepreneurship through entrepreneuship education. In addition, the introduction of diverse programs that encourage entrepreneurship should enhance the attractiveness of promising talent to enter the entrepreneurial market.

• The Korean Journal of Franchise Management
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• v.11 no.3
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• pp.19-26
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• 2020

Purpose: The old axion to put the customers first (e.g., customers are king, customers are always right) has been taken for granted in the service sector. In addition, many companies in South Korea are providing customer-first education for employees at their contact points to strengthen their competitiveness. However, excessive increase in the psychological power of the customer can lead to a problem of abuse of power, called 'Gap-jil.' Despite these concerns, most companies hardly discard policies to give high priority to customers because of the assumption that it enhances customer satisfaction leading to organizational performance. However, in recent years, some franchise catering companies have posted warnings about the abuse of power by customers, and a movement to pursue a power-balancing between service providers and their customers is spreading. Research design, data, and methodology: This research is conducted to reconsider the principle of the customer-first perspective and to create a basis for arguments that can solve the problem of abuse of power, which is recognized as a serious social problem. In this research, we test and analyze the effect of customers' psychological power in the context of a restaurant on expectation for service and response to service failure. Result: The result of an experimental study shows that the effect of psychological power on customer satisfaction can be somewhat negative. Also, customers with high psychological power are more likely to have high service expectations. Especially high psychological power of customers causes a difference in the expectation level of human factors such as employee attitude, while the difference in expectations of non-human factors such as restaurant atmosphere was not statistically significant. In addition, when customers with high psychological power encounter service failure situation, they are more likely to feel disappointment and regret with a service provider. Meanwhile, the effect of psychological power on complaining behaviors are not significant. Conclusions: The findings of this research provide meaningful implications that the service providers should reconsider their existing corporate culture and management policies that put customers first. In addition, the result of this research is provided meaningful opportunities to review the management philosophy for the company's customers and the education philosophy for the employee education.

• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.33-43
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• 2018

Purpose - In hotel industry, quality of leader-member exchange(LMX) relationship is very critical, because it impacts on the employee's work attitude and behaviors. Thus, this research examines the effect of LMX on employee loyalty in the context of hotel business and identifies mediating roles of work stressors, work role performance in the relationship between LMX and employee loyalty. This research suggests the guidelines for how hotel leaders should manage their employees and build employee loyalty that improve management and business performance. Research design, data, and methodology - This study tests the structural relationship between LMX, work stressors, work role performance, and employee loyalty. Work role performance divide into three sub-dimensions such as individual task proficiency, individual task adaptivity, and individual task proactivity. In order to examine the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 113 franchise hotel employees and were analyzed using SPSS 22.0 and SmartPLS 3 program. Result - The findings of this research are as follows. First, leader-member exchange(LMX) have significant positive impacts on work stressors, work role performance, and employee loyalty. Second, work stressors have significant negative impacts on work role performance and employee loyalty. Third, work role performance has significant positive impact on employee loyalty. Conclusions - The outcomes of this research indicate that hotel leaders should focus on the dyadic relationship with their employees how to improve employee productivity through LMX relationship. In turn, the quality of this relationship influences employees's work attitudes and behaviors. As a result of increasing job demands in hotel business which relies heavily on human resources, the hotel leader must find ways to prevent or reduce stressors and associated strains. If hotel employees perceive the high quality of LMX relationship, they improve their work role performance which influences loyalty. Therefore, the hotel leaders should develop monetary or non-monetary reward system for the employees and, make an efforts to have unique social exchange relationships with employees.

• The Journal of Bigdata
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• v.2 no.2
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• pp.57-66
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• 2017

Companies has been investing enormous resources in promotion as the market keeps changing rapidly. Therefore, there are growing needs to measure the impact of a promotion on revenue growth. To investigate the effect of promotion in franchise food service industry, this study empirically analyzed text data from Twitter, one of the dominant social network services. Our findings show that a gap between promotions, promotion duration, and season have a significant influence on a volume of twitter buzz, which represents a promotion effect in our study. Next, we tried to analyze the reason why those factors were related to the promotion effect. Finally, we suggested promotion strategies related to each influential factor depending on types of business in food service industry.

• Journal of Distribution Science
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• v.10 no.9
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• pp.13-21
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• 2012

Purpose - Korean traditional markets are falling behind the times, because they have not met the demands of social changes including: an overall improvement in standards of living, shift in purchasing form and propagation of cars. It is one of the most indigenous and conventional foods of Korea, taking a seat far in the corner of Korean traditional culture. Research design / data / methodology - Korean traditional rice cakes however have their limits. They are produced and sold by independent shop owners who cannot compete with the brand power of franchise organizations. The leadership of adminstration is needed for these shop owners particularly in visual merchandising related to interior design and display. Results - Additionally, the advent of major company-run rice cake cafe adds fresh fuel to the problem in addition to small but luxurious packaging. Small business owners need packaging technology for overall quality improvement of sales of rice cakes. Additional help is needed with the mode of packing to promote sales and win consumer confidence. Conclusions - Further assistance with marketing for seasonal displays is needed as well as teaching business owners how to read graphic data. Regular specialized education for visual merchandising of rice cakes could help independent market owners win the competition against franchise-based organizations.

• The Korean Journal of Franchise Management
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• v.14 no.3
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• pp.53-67
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• 2023

Purpose: This study aims to explore the shopping motivations of consumers at South Korean convenience stores and create distinct consumer segments based on these motivations. Additionally, the research seeks to propose tailored marketing strategies for convenience stores by analyzing consumer demographics and satisfaction levels within each segment. Research design, data and methodology: Using factor analysis, we identify three primary shopping motivation factors: "social/leisure," "functional," and "convenience." Subsequently, we use cluster analysis to group convenience store consumers into three categories: the "convenience-seeking group," the "function/convenience-seeking group," and the "multipurpose-seeking group." To gain a deeper understanding of each consumer segment, we investigate how demographic factors relate to their levels of satisfaction. Results: These findings offer valuable insights for adapting to shifting consumer preferences and the increasingly competitive landscape of South Korean convenience stores, especially in the expanding services offered by online businesses. Conclusions: This research emphasizes the significance of developing marketing strategies tailored to address the distinctive needs and preferences of individual consumer segments. These strategies empower convenience stores to establish a competitive advantage in the market.

• The Journal of the Korea Contents Association
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• v.17 no.3
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• pp.556-570
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• 2017

The purpose of this study is to examine the structural relationships among relational benefits of the franchise coffee shop, customer satisfaction, switching cost and relationship retention intention. The results of this study are as follows: First, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on customer satisfaction. Second, among relational benefits, social benefits, psychological benefits, customization benefits and economic benefits had a significant influence on switching cost. Third, customer satisfaction had a significant influence on relationship retention intention. Fourth, switching cost had a significant influence on relationship retention intention. Finally, the conclusion section suggested strategic implications to induce relational benefits, customer satisfaction, switching cost and relationship retention intention based on the findings.

• The Research Journal of the Costume Culture
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• v.27 no.6
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• pp.645-653
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• 2019

Laundry services are becoming more specialized and diversified. Therefore, this study investigated consumers' perceptions of professional laundry shops by analyzing social media data. For this purpose, text data from blogs, cafés, and Q&A sections ('Ji-Sik-In') on the portal site, naver.com, was collected. Sixty-four keywords were extracted from 2,213 social texts and transformed into a one-mode matrix using KrKwic, a program for the analysis of Korean text. Semantic network analysis was conducted to understand the network structure and the results were visualized using NodeXL. Keywords included fashion items and materials that require specialized professional laundry services, words related to the establishment of laundry shops, and laundry shop brands. Essential keywords of professional laundry shops included 'luxury,' 'footwear,' 'removal,' 'bag,' 'leather,' 'sneakers,' 'padding,' 'premium,' 'dyeing,' and 'franchise.' These results could be used to deduce that consumers perceive a professional laundry shop as a franchise shop offering specialized professional laundry services. A cluster analysis was conducted to identify the types of consumer perceptions of professional laundry shops. The network was divided into three groups: 'specialized professional laundry service,' 'laundry and repair of winter coats and jackets,' and 'the establishment of a professional laundry shop.' According to the results, consumers perceive professional laundry shops as franchises that offer specialized professional laundry services rather than general laundry services. Therefore, professional laundry shops need a strategy to develop special laundry services that differentiate them from other companies and communicate with consumers about these services.