• Journal of Global Scholars of Marketing Science
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• v.19 no.4
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• pp.1-10
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• 2009

The purpose of this study was to categorize the gap between coffee shop 'importance' (as perceived by customers before patronizing the coffee shop) and 'satisfaction' (perception of customers after patronizing the coffee shop) as positive or negative and to analyze the effect of these gaps on purchasing behavior. To do this, I used the gap between importance and satisfaction regarding the choice of a coffee shop as the explanatory variable and performed an empirical analysis of the direction and size of the effect of the gap on purchasing behavior (overall satisfaction, willingness-to-revisit) by applying the Ordered Probit Model (OPM). A previous study that used IPA to evaluate the effects of gaps estimated the direction and size of a quadrant but failed to analyze the effect of gaps on customers. In this study, I evaluated the effects of positive and negative gaps on customer satisfaction and willingness-to-revisit. Using OPM, I quantified the effect of positive and negative gaps on overall customer satisfaction and willingness-to-revisit. Per-head expenditure, frequency of visits, and coffee-purchasing place had the most positive effects on overall customer satisfaction. Frequency of visits, followed by per-head expenditure and then coffee-purchasing place, had the most positive impact on willingness-to-visit. Thus per-head expenditure and frequency of visits had the greatest positive effects on overall satisfaction and willingness-to-revisit. This finding implies that the higher the actual satisfaction (gap) of customers who spend KRW5,000 or more once or more per week at coffee shops is, the higher their overall satisfaction and willingness-to-revisit are. Despite the fact that economical efficiency had a significant effect on overall satisfaction and willingness-to-revisit, college and university students still use coffee shops and are willing to spend KRW5,000 because they do not only purchase coffee as a product itself, but use the coffee shop for other activities, such as working, meeting friends, or relaxing. College and university students also access the Internet in coffee shops via personal laptops, watch movies, and study; thus, coffee shops should provide their customers with the appropriate facilities and services. The fact that a positive gap for coffee shop brand had a positive effect on willingness-to-revisit implies that the higher the level of customer satisfaction, the greater the willingness-to-revisit. A negative gap for this factor, on the other hand, implies that the lower the level of customer satisfaction, the lower the willingness-to-revisit. Thus, the brand factor has a comparatively greater effect on satisfaction than the other factors evaluated in this study. Given that the domestic coffee culture is becoming more upscale and college/university students are sensitive to this trend, students are attentive to brands. In most upscale coffee shops in Korea, the outer wall is built out of glass that can be opened, the interiors are exotic with an open kitchen. These upscale coffee shops function as landmarks and match the taste of college/university students. Coffee shops in Korea have become a cultural brand. To make customers feel that coffee shops are upscale, good quality establishments and measures to provide better services in terms of brand factor should be instituted. The intensified competition among coffee shop brands in Korea as a result of the booming industry indicates that provision of additional services is needed to differentiate competitors. These customers can also use a scanner free of charge. Another strategy that can be used to boost brands could be to provide and operate a seminar room for seminars and group study. If coffee shops adopt these types of strategies, college/university students would be more likely to consider the expenses they incur worthwhile and, subsequently, they would be more likely to be satisfied with the brands of these coffee shops, with an associated increase in their willingness-to-revisit. Gender and study year had the most negative effects on overall satisfaction and willingness-to-revisit. Female students were more likely to be satisfied and be willing to return than male students, and third and fourth-year students were more likely to be satisfied and willing-to-return than first or second-year students. Students who drink coffee, read books, and use laptops alone at coffee shops are easily noticeable. High-grade students tend to visit coffee shops alone in order to use their time efficiently for self-development and to find jobs. The economical efficiency factor had the greatest effect on overall satisfaction and willingness-to-revisit in terms of a positive gap. The higher the actual satisfaction (gap) of students with the price of the coffee, the greater their overall satisfaction and willingness-to-revisit. Economical efficiency with a negative gap had a negative effect on willingness-to-revisit, which implies that a less negative gap will result in a greater willingness-to-revisit. Amid worsening market conditions, coffee shops located around colleges/universities are using strategies, such as a point or membership card, strategic alliances with credit-card companies, development of a set menu or seasonal menu, and free coffee-shot services to increase their competitive edge. Product power also had a negative effect in terms of a negative gap, which indicates that a higher negative gap will result in a lower willingness-to-revisit. Because there are many more customers that enjoy coffee in this decade, as compared to previous decades, the new generation of customers, namely college/university students, want various menu items in addition to coffee, and coffee shops should, therefore, add side menu items, such as waffles, rice cakes, cakes, sandwiches, and salads. For example, Starbucks Korea is making efforts to enhance product power by selling rice cakes flavored in strawberry, wormwood, and pumpkin, and providing coffee or cream free of charge. In summary, coffee shops should focus on increasing their economical efficiency, brand, and product power to enhance the satisfaction of college/university students. Because shops adjacent to colleges or universities enjoy a locational advantage, providing differentiated services in terms of economical efficiency, brand, and product power, is likely to increase customer satisfaction and return visits. Coffee shop brands should, therefore, be innovative and embrace change to meet their customers' desires. Because this study only targeted college/university students in Seoul, comparative studies targeting diverse regions and age groups are required to generalize the findings and recommendations of this study.

• Asia pacific journal of information systems
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• v.23 no.1
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• pp.21-43
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• 2013

Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers'lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer's willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers' willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

• Knowledge Management Research
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• v.15 no.4
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• pp.127-145
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• 2014

This study aims to examine the effects of message framing of restaurant menus on customers' perceptions (trust and immersion) and their willingness to pay a premium price. The contents of messages focused on a hypothetical restaurant's cause-marketing activity. Four types of message framing were created: The first two types were varied by the presence and absence of the information about the current cause-marketing outcome, and the second two types were varied by positive and negative framing. The results showed that respondents in general had trust in cause-marketing messages and immersion of cause-marketing message by negative framing lead to positive influence of willingness to pay. Furthermore it had a significant effect on willingness to pay depending on cause-marketing message type and negative message framed messages showed an intention to willingness to pay a premium price. This study compared the difference in messages by type as an extension of the studies of cause-marketing messages in the past. The results of this study will be used for establishing effective marketing strategies for today's foodservice companies and serve as objective data for setting differentiated prices under the circumstance where the importance of companies' social responsibilities is growing.

• Journal of Korean Institute of Industrial Engineers
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• v.38 no.1
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• pp.57-66
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• 2012

The paper deals with the development of a model for group decision making under multiple criteria. The Multi-criteria group decision making (MCGDM) is the process to determine the best compromise solution in a set of competing alternatives that are evaluated by decision makers having their own preferences on conflicting objectives. For MCGDM, we propose a Mixed-Integer Programming (MIP) model that implements a revised median approach by noticing that the original median approach cannot consider the willingness to reject and the indifferent preference conditions. The proposed MIP model tries to select a common best Pareto-optimal solution by maximizing the overall desirability considering the willingness to reject and the indifferent preference that represent the tolerance measure of each decision maker. To evaluate the effectiveness of the proposed model, we compared the results of the proposed model with those of the median approach. The results showed that the proposed MIP model produces more realistic and better compromised alternative by incorporating the decision maker's willingness to reject and the indifferent preferences over each criteria.

• Journal of Environmental Impact Assessment
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• v.13 no.2
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• pp.73-86
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• 2004

The objective of this research was to estimate residents' willingness-to-pay using contingent valuation method and to investigate their environmental sensibilities prior to conduct the costbenefit analysis on the watershed management program of integrated sewerage construction and operation in the catchment of Dam Chung-Ju. A set of questionnaire was prepared and asked to 1,200 residents at downstream area as well as upstream area of Dam Chung-Ju. As a result, environmental sensibility of the residents living in the catchment of upstream of Lake Chung-Ju seemed very high. However, the substantial practice in their own life for conserving their environment was inactive, although residents' efforts trying to collect and dispose garbages in separate containers and to minimize the waste discharge load were actually made. The willingness-to-pay on each month for 20 years was estimated as 4,841 wons for the openended question and 3,411 wons for the close-ended question. Factorial analysis was also performed to obtain correlation among the questions asked. Seven groups of the correlated questions were identified and their contribution to the estimated willingness-to-pay was analyzed.

• Korean Journal of Human Ecology
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• v.12 no.5
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• pp.669-685
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• 2003

This research examined the work performance by consumer counselors, evaluations of their counseling work, the level of their satisfaction, and willingness to sustain consumer counseling work among Consumer Agencies and also identified the variables influencing the evaluation scores on those. The results were summarized as follows. First, the evaluation scores on the work performance of consumer counseling were generally high and they turned out to be generally satisfied with their work. On the other hand, most counselors responded that they would continue their counseling work. Second, there were differences in evaluation scores about speed and specialized area of counseling among Consumer Agencies. Counselors who worked for the Korea Consumer Protection Board recorded high scores in those both criteria. There were differences in the willingness of counselors to continue their counseling work among Consumer Agencies, too. Third, the evaluation scores in six areas of counseling tasks were high when the degree of satisfaction of counselors were high or when agencies treated the counseling important. Fourth, when counselors earned more salaries and owned the experience of in-firm training and when the Consumer Agencies highly valued counseling as consumer tasks, the degree of satisfaction among counselors increased. Finally, when counselors were old, major in consumer science, and held regular work-schedule, they exhibited high degree of satisfaction in their counseling work and they showed greater willingness to sustain their counseling work.

• Journal of Korean Academy of Nursing Administration
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• v.9 no.1
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• pp.31-40
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• 2003

Purposes : The purpose of this study is to analyze the correlation among Expectations, Performance-Perception, Willingness of reuse of hospital. Methods : The subjects of this study were 120 patients who were admitted in the hospitals over 1 week in Pusan. The data was collected by self-reporting questionnaires from Oct. 16th, to Nov. 5th, 2001. The data were analysed by SPSS/PC package using frequency, percentage, mean, standard deviation, Pearson's correlation coefficient. Results : The results were as follows; 1) The mean score of Expectation was 3 and over. The highest item was 'equal treatment' and the lowest was 'safety in transaction'. 2) The mean score of Performance-Perception was 4 and under. The highest item was 'nurse' attractive appearance' and the lowest was 'equal treatment', 'kindness and etiquette'. 3) The mean score of Willingness of reuse was 3.11. 4) There was a statistical significance of the difference between Expectations and Performance-Perception. The highest difference item was 'equal treatment', and then the lowest difference item was 'working environment arrangement/order'. 5) There were statistically significant positive correlation among Expectations, Performance-Perception, and Willingness of reuse. The highest correlation was 0.89 between Performance-Perception and Willingness of reuse. Conclusions : Nursing managers have to develop nurse training programs for improving of patient's performance perception on nursing service.

• Journal of the Korean Home Economics Association
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• v.44 no.12
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• pp.79-91
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• 2006

The purpose of this study was to investigate the perception of problem of internet usage and the willingness to receive internet education among adolescents on Jeju Island, who are core internet users, and the related variables. The survey was administered to 566 students from elementary and middle schools on Jeju. The data were analyzed by T-test, ANOVA analysis, DMR test and logistic regression analysis. The major results of this study were as follows. First, the adolescents perceived the conflict with family due to the problem of internet usage. Taken as a whole, the perception of a problem due to internet usage was low. Second, the internet-related variables were very important to the perception level of the problem in that there was a significant difference in all sub-spheres according to the internet usage time. Also, the personal-related variables such as gender, age, and personal expenses had a meaningful difference on the perception level of problem. Third, adolescents' willingness to receive internet education was considerably high. The personal-related variables such as gender and school record had a meaningful influence on the willingness of the internet education.

• Journal of Environmental Science International
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• v.20 no.3
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• pp.395-404
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• 2011

Weather forecasting is one of the key elements to improve health through the prevention and mitigation of health problems. Health forecasting is a potential resource creating enormous added value as it is effectively used for people. The purpose of this study is to estimate 'Willingness to Pay' for health forecasting. This survey was carried out to derive willingness to pay from 400 people who lived in Busan and Kyungnam Province and over 30 years of age during the period of July 1-31, 2009. The results showed that a 47.50% of people had intention to willingness to pay for health forecasting, and the pay was 7,184.21 won per year. Willing to pay goes higher depending on 'tax burden as to benefit of weather forecasting', 'importance of the weather forecasting in the aspect of health', 'satisfaction to the weather forecasting', and 'frequency of health weather index check'. This study followed the suggestion of the Korea Meteorological Administration generally and the values derived through surveys could be reliable. It can be concluded that a number of citizens who are willing to pay for health forecasting are high enough to meet the costs needed to provide health forecasting.

• Environmental and Resource Economics Review
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• v.22 no.1
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• pp.179-214
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• 2013

This paper estimated the value of waterside landscape and ecosystem of Han River basin with a double-bound dichotomous choice type of CVM. We used the exponential willingness to pay model to represent the nonnegative willingness to pay. This model is found to be especially important in analyzing a double-bound dichotomous choice model. The total willingness to pay was estimated as 705.5 billion won per annum. This suggests that current budget size for water quality and ecosystem conservation for Han River needs to be expanded.