• 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.

• Journal of Distribution Science
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• v.12 no.4
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• pp.5-9
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• 2014

Purpose - The purpose of this study was to compare and contrast the applicability and effectiveness of both teukyakmeip contracts of Korea and consignment contracts of the United State to demonstrate the effectiveness and practicability of teukyakmeip in Korea. These are popular contract agreements between large retailers and their suppliers and vendors. In recent years, teukyakmeip was critically examined and scrutinized by the politicians, the media, and the public of Korea. Consequently, this paper focusesheavily on identifying and analyzing different types of contract agreements between large retailers and their suppliers that currently exist in Korea and compares and contrasts those analyzed contract agreements with teukyakmeip. The article also comparesand contrasts teukyakmeip with the consignment agreements of the United States to identify similarities and differences. Research design, data, and methodology - This study is a descriptive study and has used personal interviews to collect and analyze the data. This study also fits the definition of the case study wherein it is entirely focused on investigating a real-life event: analyzing and examining contract agreements in the distribution industry. Both randomly selected management and vendor representatives from the three major department stores, Lotte, Hyundai, and Shinsegae, in Korea were interviewed between July and September 2013. The analysis of the consignment agreement was conducted based on existing secondary data. Results - Although the evidence of the abuse of teukyakmeip and consignment by large retailers from both countries clearly exists, the findings suggestthat both contract agreements would remain as the most relevant and effective legal contracts between large retailers and their suppliers. Based on the comparisonanalysis of teukyakmeip and consignment, both contracts indicated that suppliers are fully responsible for inventory and inventory management. If sales person is necessary for promoting special product, then suppliers are responsible for providing a sales person and their wages under both contracts. However, American department stores, those located outside urban area, tend to use their own employees to perform special product and sales promotion. The retailersare fully responsible for any interior or floor design or redesign of the retail store to accommodate the products from vendors under consignment; however, both suppliers and retailers share the cost of designing and redesigning the interior to accommodate vendors'products under teukyakmeip. Suppliers are responsible for pricing and supplying the quantity of the products under both agreements. Both contracts allow special sales commission as long as vendors agreed. Vendors use this special commissionto introduce their new products or apply market penetration strategy. Conclusions -The findings of this study showed the changing pattern of contract agreements between large retailers and their suppliers from both countries. Furthermore, this study evidently generated policy implications of teukyakmeip which recently became the major social issue in Korea and attracted many policymakers to gain political points by criticizing the teukyakmeip system and the large retailers. The findings of the study would be valuable to policy makers in making appropriate decisions and to large retailers and vendors in making beneficial agreements. The major implication of this study is that teukyakmeip and consignment agreements include very similar or almost identical characteristics, and they are popular among department stores and suppliers. The issue of abolishing teukyakmeip in Korea needs to be examined cautiously because teukyakmeip is the best one available at the moment, and the study suggests that no one benefits from abolishing this system.

• Clinical and Experimental Reproductive Medicine
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• v.35 no.4
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• pp.247-265
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• 2008

Objectives: Many types of liver diseases can damage regenerative potential of mature hepatocytes, hepatic progenitor cells or oval cells. In such cases, a stem cell-based therapy can be an alternative therapeutic option. We examined whether human amnion-derived mesenchymal stem cells (HAM) and human umbilical cord-derived stem cells (HUC) could differentiate into hepatocyte-like cells as therapeutic cells for the liver diseases. Methods: HAM and HUC were isolated from the amnion and umbilical cord of the volunteers after a caesarean section with informed consent. In order to differentiate these cells into hepatocyte-like cells, cells were cultivated in hepatogenic medium using culture plates coated with fibronectin. Effects of hepatocyte growth factor, L-ascorbic acid 2-phosphate, insulin premixture fibroblast growth gactor 4, dimethylsulfoxide, oncostatin M and/or dexamethasone were examined on the hepatic differentiation. After differentiation, the cells were analyzed by RT-PCR, immunocytochemistry, immunoblotting, albumin ELISA, urea assay and periodic acid-schiffs staining. Results: Initial fibroblast-like appearance of HAM and HUC changed to a round shape during culture in the hepatogenic medium. However, in all hepatogenic conditions examined, HUC secreted more amounts of albumin or urea into medium than HAM. Expression of some of hepatocyte-specific genes increased and expression of new genes were observed in HUC following cultivation in hepatogenic medium. Results of immunocytochemistry and immunoblotting analyses demonstrated that HUC secreted albumin into the culture medium. PAS staining further demonstrated that HUC could store glycogen inside of the cells. Conclusions: Both HUC and HAM could differentiate into albumin-secreting, hepatocyte-like cells. Under the same hepatogenic conditions examined, HUC more efficiently differentiated into hepatocyte-like cells compared with the HAM. The results suggest that HUC and HAM could be used as sources of stem cells for the cell-based therapeutics such as in liver diseases.

• Journal of Intelligence and Information Systems
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• v.17 no.4
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• pp.305-316
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• 2011

Recommender system is the system which, by using automated information filtering technology, recommends products or services to the customers who are likely to be interested in. Those systems are widely used in many different Web retailers such as Amazon.com, Netfix.com, and CDNow.com. Various recommender systems have been developed. Among them, Collaborative Filtering (CF) has been known as the most successful and commonly used approach. CF identifies customers whose tastes are similar to those of a given customer, and recommends items those customers have liked in the past. Numerous CF algorithms have been developed to increase the performance of recommender systems. However, the relative performances of CF algorithms are known to be domain and data dependent. It is very time-consuming and expensive to implement and launce a CF recommender system, and also the system unsuited for the given domain provides customers with poor quality recommendations that make them easily annoyed. Therefore, predicting in advance whether the performance of CF recommender system is acceptable or not is practically important and needed. In this study, we propose a decision making guideline which helps decide whether CF is adoptable for a given application with certain transaction data characteristics. Several previous studies reported that sparsity, gray sheep, cold-start, coverage, and serendipity could affect the performance of CF, but the theoretical and empirical justification of such factors is lacking. Recently there are many studies paying attention to Social Network Analysis (SNA) as a method to analyze social relationships among people. SNA is a method to measure and visualize the linkage structure and status focusing on interaction among objects within communication group. CF analyzes the similarity among previous ratings or purchases of each customer, finds the relationships among the customers who have similarities, and then uses the relationships for recommendations. Thus CF can be modeled as a social network in which customers are nodes and purchase relationships between customers are links. Under the assumption that SNA could facilitate an exploration of the topological properties of the network structure that are implicit in transaction data for CF recommendations, we focus on density, clustering coefficient, and centralization which are ones of the most commonly used measures to capture topological properties of the social network structure. While network density, expressed as a proportion of the maximum possible number of links, captures the density of the whole network, the clustering coefficient captures the degree to which the overall network contains localized pockets of dense connectivity. Centralization reflects the extent to which connections are concentrated in a small number of nodes rather than distributed equally among all nodes. We explore how these SNA measures affect the performance of CF performance and how they interact to each other. Our experiments used sales transaction data from H department store, one of the well?known department stores in Korea. Total 396 data set were sampled to construct various types of social networks. The dependant variable measuring process consists of three steps; analysis of customer similarities, construction of a social network, and analysis of social network patterns. We used UCINET 6.0 for SNA. The experiments conducted the 3-way ANOVA which employs three SNA measures as dependant variables, and the recommendation accuracy measured by F1-measure as an independent variable. The experiments report that 1) each of three SNA measures affects the recommendation accuracy, 2) the density's effect to the performance overrides those of clustering coefficient and centralization (i.e., CF adoption is not a good decision if the density is low), and 3) however though the density is low, the performance of CF is comparatively good when the clustering coefficient is low. We expect that these experiment results help firms decide whether CF recommender system is adoptable for their business domain with certain transaction data characteristics.

• Journal of Bio-Environment Control
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• v.23 no.2
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• pp.116-122
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• 2014

This study was conducted to find out the appropriate packaging materials to extend the storability and maintain the quality of cherry tomato for modified atmosphere (MA) storage. Tomatoes were grown by hydroponic at a plastic house in Gangwon Province. Light red maturity stage tomatoes were harvested and packed with MA condition (10,000; 20,000; 40,000; 60,000; 80,000; and $100,000cc/m^2.day.atm$ $O_2$ permeability film) and perforated film to store at $5^{\circ}C$, $11^{\circ}C$ and $24^{\circ}C$. The fresh weight loss was less than 0.6% in all non-perforated breathable films at $^5{\circ}C$, $11^{\circ}C$, and $24^{\circ}C$, but perforated film had less than 2.93% at $5^{\circ}C$, 13.29% at $11^{\circ}C$ and 27.24% at $24^{\circ}C$. The 20,000cc at $5^{\circ}C$ and $11^{\circ}C$, and the 40,000cc film at $24^{\circ}C$ balanced optimum carbon dioxide and oxygen concentration in the package to maintain quality. The 10,000cc film was appeared the significantly highest ethylene concentration at $5^{\circ}C$, $11^{\circ}C$, and $24^{\circ}C$, this film had the lowest $O_2$ permeability. Visual quality, firmness, and soluble solids were maintained in 20,000cc films both at $5^{\circ}C$ and $11^{\circ}C$, the 40,000cc film at $24^{\circ}C$. There was no any trend in titratable acidity and vitamin C content of treated packed film types and temperatures at cherry tomatoes packages. Therefore, the appropriate MA condition for $5^{\circ}C$ and $11^{\circ}C$ is $20,000cc/m^2.day.atm$ $O_2$ permeability film; for $24^{\circ}C$ it is $40,000cc/m^2.day.atm$ $O_2$ permeability film because those films extended the storability through the firmness, soluble solids as well as visual quality.

• Journal of the Society of Disaster Information
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• v.10 no.4
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• pp.583-597
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• 2014

Fire caused by heater has various causes as many as the types of heater. also, lots of damage of human life and property loss are caused, since annually continuous fire accident by heater in traditional market is frequently occurring. There are not many cases of fire due to heater in most of residential facilities such as general house, apartments, etc., because they are supplied with heating boiler, however the restaurant, store and office of the market, sports center, factory, workplace, etc. still use heater, e.g. oilstove, electric heater, etc., so that they are exposed to fire hazard. Also, when investigating the number of fire due to heater, it was analyzed to occur in order of home boiler, charcoal stove, oilstove, gas heater/stove, electric stove/heater, the number of fire per human life damage was analyzed in order of gas heater/stove, oil heater/stove, electric heater/stove, briquette/coal heater. Also, gas and oil related heater were analyzed to have low frequency, however, with high fire intensity. Therefore, this research aimed at considering more scientific fire inspection and identification approach by reenacting and reviewing fire outbreak possibility caused by combustibles' contact and conductivity under the normal condition and abnormal condition in respect of ignition hazard, i.e. minimum ignition temperature, carbonization degree and heat flux along with it, due to oilstove and electric stove, which are still frequently used in public use facility, traditional market, and, of which actual fire occurrence is the most frequent. As the result of reenact test, ignition hazard appeared very small, as long as enough heat storage condition is not made in both test objects(oilstove/electric stove), however carbonization condition was analyzed to be proceeded per each part respectively. Eventually, transition to fire is the ignition due to heat storage, so that it was analyzed to ignite when minimum heat storage temperature condition of fire place is over $500^{\circ}C$. Particularly, in case of quartz pipe, the heating element of electric stove, it is rapidly heated over the temperature of $600^{\circ}C$ within the shortest time(10sec), so that the heat flux of this appears 6.26kW/m2, which was analyzed to result in damage of thermal PVC cable and second-degree burn in human body. Also, the researcher recognized that the temperature change along with Geometric View Factor and Fire Load, which display decrease of heat, are also important variables to be considered, along with distance change besides temperature condition. Therefore, the researcher considers that a manual of careful fire inspection and identification on this is necessary, also, expects that scientific and rational efforts of this research can contribute to establish manual composition and theoretical basis on henceforth fire inspection and identification.