• The Korean Journal of Franchise Management
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• v.3 no.1
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• pp.46-72
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• 2012

Currently, the service industry share in domestic industry is increasing. Especially the size and marketability of the food service industry, which satisfies with basic human desire, is growing significantly. In this food industry, the coffee industry is recognized as a different area from the traditional food industry. The age of instant coffee at low price has gone. Today, more and more customers want to drink more delicious coffee and coffee that is good to their bodies. Especially as individualism has been rambling, more and more people enjoy individualism and want their personal space. This is why coffee speciality stores have been universalized. Also, as coffee speciality stores have been generalized, their own service quality is necessary and they should satisfy and affirm their loyalty to the customers in line with the enhancement of service quality. The purpose of this research is understanding of the impact of coffee specialty shop's service quality on affective commitment and repurchase intentions. The results of an empirical study in this research are as follows: First, compassion among the execution factors of coffee specialty shop's quality has a positive effect on both of affective commitment. But typicality and reactivity don't. Second, affective commitment have a positive effect on repurchase intentions. With a base of the above research result, we should comprehend that another service quality factor exists compared to other dining-out industry and establish marketing strategies in order to contribute to enhance repurchase intentions for the customers.

• Journal of Distribution Science
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• v.16 no.11
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• pp.65-72
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• 2018

Purpose - The purpose of this research is to investigate the effect of ex ante governance mechanisms that can be exercised by franchisers on franchise contract compliance and various relationship outcomes. There are many previous studies on control mechanisms in inter-firm relationship, however, most studies focus on ex post governance mechanisms and identify the effects of behavior control and outcome control on performances. Based on transaction cost theory and agency theory, this study defines the ex ante governance mechanisms of franchisers as contractual completeness and extra contractual incentives. The author have examined the two ex ante control mechanisms on contract compliance, recontract intention, multi-shop running intention and opportunistic behaviors of franchisee. Research design, data, and methodology - In this study, 137 questionnaires of food and beverage franchise stores were collected through a specialized research company. The reliability and validity of the variables were analyzed using SPSS 18.0 and AMOS 18.0 programs and hypotheses were verified through the structural equation modeling. Results - As a result of hypothesis testing, contractual completeness and extra contractual incentives have a positive effect on the contract compliance of the franchisee. It is shown that franchisee's contract compliance has a positive effect on recontract intention and multi-shop running intention and has a negative effect on opportunistic behaviors. Conclusions - This study examines the ex ante governance mechanisms such as contractual completeness and extra contractual incentives, which is relatively rare compared to ex post governance mechanism in B2B relationship. According to the results of this research, these two tools can be used as ex ante control mechanisms for franchise headquarters to use their franchisees. In addition, franchisee's contract compliance affects various relationship outcomes between franchisor and franchisees.

• The Korean Journal of Franchise Management
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• v.11 no.2
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• pp.17-22
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• 2020

Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

• The Korean Journal of Franchise Management
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• v.12 no.3
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• pp.21-34
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• 2021

Purpose: As the visual expression cue that can easily reveal and imprint the brand image to consumers becomes more important, franchise coffee shops are making various efforts to establish design elements and brand identity. Therefore, the purpose of this study is to examine the structural model between design elements, brand identity, brand association, brand personality, and brand image of franchise coffee shops from various angles, and to suggest a plan for using visual elements makes a brand image on the franchise in the future. Research design, data, and methodology: This study tests the structural relationship between design elements, brand identity, brand association, brand personality, and brand image of franchise coffee shops. design elements are divided into three attributes (interior design, product design). And brand identity is divided into two attributes (brand name, brand symbol/logo). In order to achieve the purposes of this research, research model and hypotheses were developed based on previous researches. All constructs were measured with multiple items developed and tested in the previous studies. The data were collected from 380 customers who visited franchise coffee shops and were analyzed through SPSS 26.0 and SmartPLS 3.0 statistical package program. Result: As a result of this study, first, it is confirmed that product design has a positive effect on brand association toward coffee shops. Second, interior design and product design have a positive effect on brand personality. Third, all brand identity have a significant positive impact on brand association and brand personality. Finally, brand association and brand personality of coffee specialty shops have a positive effect on brand image. Conclusions: The following implications of this study are as follows. This study is confirmed that there is an effect of design elements attributes and brand identity attributes on brand association and brand personality. And, the brand image was found to be influenced by brand association and brand personality. This suggests that it can be used to establish visible marketing strategies for franchise coffee shops. Therefore, it is necessary to further improve efforts to raise the level of the brand image through visual factors such as unusual interior design, product packages.

• 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.

• The Korean Journal of Franchise Management
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• v.11 no.1
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• pp.19-29
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• 2020

Purpose - To understand the assessment basis of customers' coffee shop experience and give more practical advices to the franchised coffee shops which are poorly managed in the competitive market, this study identified factors to measure the quality of customer experience and explored the relationship between these factors and customer satisfaction and loyalty. Further, this study analyzed which role self-efficacy played in the structural relationship between the quality assessment factors, satisfaction and loyalty of franchised coffee shops. Research design, data, methodology - The data were collected from respondents who had visited franchised coffee shops within the previous month through online survey. The questionnaires were surveyed from February 11 to February 14, 2019. A total of 318 responses were collected after excluding four of incomplete or uncandid responses. A structural equation modeling approach was used to examine the proposed hypothesis and a confirmatory factor analysis was employed to verify the four dimensions of quality assessment. Results - The findings of this study are as follows. First, the three of quality assessment variables significantly influenced on satisfaction except environmental quality. Second, economic and service quality significantly influenced on self-efficacy but environmental and menu quality didn't. Third, satisfaction significantly influenced on loyalty but not on self-efficacy. Fourth, self-efficacy significantly influenced on Loyalty. Conclusions - This study identified the four dimensions to assess the franchised coffee shop service - menu, environment, service and economic quality and verified these four dimensions are valid as indicators to measure the quality of customers' coffee shop experience. Further, by empirically testing the structural relationships among these quality assessment dimensions, satisfaction, self-efficacy and loyalty, this study provided theoretical foundations to explore the relationship between customer and the franchised stores in restaurant businesses. For the industry, the study findings showed that customers highly appreciated menu and economic quality of the service rather than the stores' interior. This indicate that the franchised coffee shops need to focus more on the basics of coffee such as taste and menu variety and economic value than the decoration of the store, which are often over-invested nowadays.

• Journal of Distribution Science
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• v.15 no.2
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• pp.37-46
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• 2017

Purpose - This research investigates whether e-service quality has the influence on long-term orientation, consumer commitment, and satisfaction. Research design, data, and methodology - Data collection took place for 30 days from October 1, 2015 to October 31, 2015. 315 copies had been analyzed. Covariance structure analysis with credibility and factor analysis was conducted to verify this research hypotheses. Results - First, the lower dimension concepts of e-service quality, reliability, and tangibility had a significant influence on customer commitment, and responsiveness had a significant negative influence. However, aesthetics did not have a significant influence on that. Secondly, aesthetics had a significant influence on long-term orientation, but reliability, tangibility, and responsiveness did not have a significant influence. Thirdly, reliability, tangibility, and aesthetics had a positive influence on customer satisfaction. However, responsiveness had a negative influence. Fourthly, customer commitment had a significant and positive influence on customer satisfaction, but customer commitment and customer satisfaction had a negative influence on long-term orientation. Conclusions - This research verifies the influencing relationship between e-service quality of a franchise coffee shop application with customer commitment, customer satisfaction, and long term orientation. By the results of this research, possibility of application and expansion of theory has been proven.

• The Korean Journal of Franchise Management
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• v.9 no.2
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• pp.39-52
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• 2018

Purpose - This study investigates the effect of service quality of coffee shop on store attitude and store loyalty. It demonstrates that the individual's behavior identification level plays a moderating role when the service quality of coffee shop affects store attitude. Conceptually drawing on Brady & Cronin's three-dimensional model of service quality, this study examines the effect of service quality of coffee specialty store on customer's attitudes and loyalty. Also, according to construal level theory, it examines the individual's propensity difference whether the individual's behavior identification level on service quality and store attitude has a moderating effect Research design, data, and methodology - This study used Brady & Cronin's three-dimensional service quality model, and 183 valid cases collected through the questionnaire survey were used for data analyses. For hypothesis testing, regression analysis, multiple regression analysis, and covariance analysis were conducted. Result- As a result of this study, first, it is confirmed that service quality has a positive effect on store attitude toward coffee shop. Second, the difference of an individual's construal level did not have a moderating effect on the influential relationship of service quality on the store attitude of coffee shop. This is because the influence of the service quality is greater than the difference between groups at the construal level. Therefore, there was no moderating influence according to construal level. Third, the store attitude of coffee specialty store has a positive effect on store loyalty. Conclusions - It is confirmed that there is a difference in the effect of service quality and store attitude on general and college students. This suggests that it can be used to establish marketing strategies by segment. And, the college students were found to be more influenced by physical environment quality factor among three dimensions of service quality. Therefore, it is necessary to further improve efforts to raise the level of service quality perception through physical environmental factors such as clean and pleasant environment including the interior of a coffee shop, and internal table arrangement. The empirical study on the moderating effects of customer's tendency of difference is meaningful in the absence of empirical studies.

• The Korean Journal of Franchise Management
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• v.3 no.1
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• pp.111-129
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• 2012

Domestic franchise industry is a promising business to more than 10% per year growth rate and emerging as core of retail. In addition, due to the socio-cultural phenomena, including the retirement of the baby-boom generation, the growth of the franchise industry for some time expected to continue. But Domestic franchise reveals that limits to ensure for new franchisees because that few industries are concentrated to advance for franchisor and franchisees. Franchisors that within the industry came to a saturated, are for the growth and expansion of business into new industries to deploy as second, third brand. But reality is that the more success rather than failure. Therefore, in this study is a new brand development approach and case study results it focus on the BEERBARKET's successful story of INTO FRANCHISE SYSTEMS, INC. Case analysis results of this study, are reveled that franchise headquarters derived through research methods and research information, environmental survey and analysis should be continuously and objectively. Thus, based on the derived contents, the new brand Biz-Model should be established for recognition from the industry and customers. Ability to respond sensitively to changes in the environment and business activities can be associated with linking franchise headquarters belonging to the saturated competitive environment more is needed. Through proactively respond Franchise New business launching instance that BEERBARKET's successful story of INTO FRANCHISE SYSTEMS, INC. suggests the need to study about how to respond to environmental changes.

• Journal of Distribution Science
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• v.15 no.6
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• pp.47-56
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• 2017

Purpose - The purpose of this study is to examine the viability of imitation strategy. Imitation strategy is one of the strategic options that a late mover can choose, and by selecting the strategy, the company imitates key elements of the business model of first movers, and modifies them to suit its conditions. The author attempted to explain how the elements of first mover's business models were creatively adapted to suit the conditions of late movers so that they can secure market position face-to-face market leaders. Research design, data, and methodology - For the purpose of the study, Korean coffee franchise industry was selected to compare the strategies of first and late movers and to discuss imitation strategy in detail. The author conducted in-depth case study of first mover and business model innovator Starbucks and Ediya Coffee, one of their imitators. The paper examines how Ediya has imitated and modified the business model of Starbucks to secure its unique competitive position in domestic market by using value chain and generic strategy analysis. Results - Starbucks and Ediya were compared in terms of their interior design, the price level of beverages, the variety of side dishes, and shop locations. Starbucks have invested interior design heavily to shops, offered diverse beverages and side dishes with relatively high price, the shops are located in central areas, whereas Ediya has concentrated on achieving cost leadership in all value activities as maintaining the quality of key products. Ediya succeeded in achieving best-provider strategy, in which it enjoys both cost leadership and differentiation advantages, largely by the strategic alliance with the biggest coffee manufacturer, Dongsuh Foods in Korea. Conclusions - Though Ediya is the imitator of Starbucks, it has modified Starbucks business models and succeeded in providing the 'third place' experience for budget-minded customers. Ediya has also succeeded in benefiting its franchisees by lowering costs and simplifying the various tasks of coffee shop management. Due to these factors, Ediya could become one of the largest number shops as the coffee franchise in Korea.