• The Korean Journal of Franchise Management
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• v.9 no.4
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• pp.45-56
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• 2018

Purpose - Consumers perceive various risks while using food service franchise stores. Food service franchise stores offer consumers not just menus, but services, physical environment, and prices, which can be perceived as risk to consumers. This means that consumer behavior in foos service franchise stores needs to be studied based on perceived risk theory. Perceived risk consists of performance risk, financial risk, social risk, psychological risk, and time risk. The purpose of this study is to investigate the effects of perceived risk on satisfaction and trust, and in turn affect loyalty. The results of this study will provide guidelines for marketers to develop strategies to reduce the perceived risk of consumers. Research design, data, methodology - In order to achieve research purposes, the authors developed several hypotheses. Data were through online survey through an online survey firm. A questionnaire survey was distributed to customers who have visited the restaurant in the past three months. The survey was conducted from March 5, 2017 to October 14, 2017. A total of 1,500 people were e-mailed and 260 were returned. A total of 245 items were used in the analysis except 15 of the questionnaire. Data was analyzed by using SPSS 21.0 and AMOS 21.0. Results - The findings of this study are as follows: First, performance risk, economic risk, and psychological risk had negative effects on satisfaction. Social and time risks did not affect on satisfaction. Performance risk and time risk had negative impact on trust. Second, economic, social, and psychological risks did not affect trust, but satisfaction had significant positive effect on trust and loyalty. Third, satisfaction had positive effect on loyalty. Conclusions - The implications of this study are as follows. First, food service franchise marketers should increase their customer loyalty by establishing a risk reduction strategy. Second, there are various risks to customers visiting the store. Therefore, marketers need to analyze the perceived risks of customers. Third, it is also necessary to eliminate the perceived risks of customers. In addition, a restaurant franchise company needs to find a reasonable way to reduce the material cost and present a reasonable menu price.

• The Research Journal of the Costume Culture
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• v.14 no.4
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• pp.647-656
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• 2006

A purpose of this research was to analyze an effect of discount stores image on brand equity of fashion brand. One hundred ninety-four women living in Seoul and its suburb were surveyed for this study. For data analysis, descriptive statistics, factor analysis, multiple regression, and ANOVA were used for this study. As the results, first, discount stores image was classified into five factors such as convenience, service, store atmosphere, familarity, and easy use. Second, brand equity was divided into three factors such as brand loyalty, perceived quality and brand recognition. Generally, discount stores images were correlated with brand equity factor. Third, results revealed that service, easy use, convenience, and familarity were 32% of the explained variance in brand loyalty. Also, store atmosphere convenience, service, and easy use were 26% of the explained variance in perceived quality. Results revealed Store Atmosphere and easy use, and familarity were 21% of the explained variance in brand recognition. Based on these results, discount stores in private brand marketing strategies would be suggested.

• Journal of Distribution Science
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• v.13 no.1
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• pp.93-103
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• 2015

Purpose - This study plans to adopt a more sophisticated approach toward service recognition by customers in general supermarkets in order to revise the service quality measurement methods that suit the context of Korean distribution channels. In particular, in general supermarkets, where much of the shopping process is in the form of self-service, there is high reliance on the service recognized by the consumers; therefore, it is highly likely that consumers would make their purchasing decisions based on their recognition of service quality or guarantees. It also utilized service quality elements of a basic level in the KD-SQS development model in order to indicate that the quality recognized by consumers impacts their loyalty to the stores with financial value and abstract value. Research design, data, and methodology - The study suggested a theoretical model comprising 13 hypotheses on relations between theoretic variables, and conducted surveys with consumers using discount stores in Seoul and Gyunggi Metropolitan area in order to verify the hypotheses, while using SPSS 20.0, AMOS 21.0 as the verification program. The survey sheets used amounted to 332, and a structural equation model was used to analyze the reliability and validity of constituent elements and to verify the suggested hypothesis. Therefore, this study analyzes the interrelations between service quality and guarantee factors in the distribution channel and their relations with the loyalty to stores as a dependent variable. Results - First, the results of the hypotheses tests helped identify the relations between service quality, service guarantees, service value, and customer loyalty, providing an opportunity to define the relations between constituent elements. In particular, service convenience in service quality has no impact on financial values. Further, stores' service policy had no impact on abstract values. Service recognition by service convenience has an impact on abstract values such as good image, comfort, and usability, while mileage systems promote financial values for consumers. In order to improve consumer values in service quality and values, general supermarkets should improve their service convenience, membership, and mileage programs using various strategies. Conclusion - In order to improve consumer values in service quality and values, general supermarkets should improve their service convenience, membership, and mileage programs using various strategies. Further, as service guarantee systems have a significant and direct impact on customer loyalty, rather than customer value recognition, service guarantees should be used to encourage customers to re-visit the stores. Finally, this study applied the findings of preceding studies in terms of service quality measurement; it had limitations in referencing preceding studies in a comprehensive manner. It also had limits in expanding upon various preceding studies because it was difficult to apply new measurement tools due to the lack of service quality measurement tools for general supermarkets. Therefore, it is necessary to conduct more studies on service quality to measure service quality and develop measurement tools by incorporating various industry characteristics.

• Journal of Distribution Research
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• v.9 no.3
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• pp.1-20
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• 2004

This paper suggests that the relationship between store images and store loyalty is moderated by store-type (online vs. offline). Data was collected from 341 online panel survey on four online stores and four offline stores. Regression analysis with interaction terms demonstrates that assortment and service among image attributes interact with store-type. Specifically, assortment is more important for offline store loyalty where as service is more important for online store loyalty. The authors discuss the implications of these findings and offer directions for future research.

• Journal of Distribution Research
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• v.3 no.1
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• pp.55-69
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• 1998

One of the urgently-needed retail strategies is to lower the labor expenses of the store. For this purpose, more stores are developing new, fancy techniques to make consumers work for the stores without paying them. Examples include self-service system, consumer suggestion system and others. These are called customer voluntary performance. Intiated by Bettencourt(1997), customer voluntary performance(CVT) becomes an important concept in modern retailing. This paper applies three dimensions of CVP (loyalty, cooperation, participation) to the setting of Consumer Complaint Intentions(CCI). Similar to CVP, CCI has three dimensions in itself (voice, private, third party). The major focus of this empirical research is on finding the possible relationships between three dimensions of CVP and three dimensions of CCI. The results show that participation is positively related to the levels of consumer complaint intentions, whereas loyalty is negatively related to the levels of them. This implies that the weak tactic of CVP(loyalty) may reduce the levels of complaint, but strong one(participation) may not be so. More conceptual and empirrical studies are urgently needed.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.3
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• pp.366-378
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• 2009

The purpose of this study was to understand fashion product consumers' relationship dissolution by considering the characteristics of customer behavior and examining the connection between the main variables. The survey was conducted on 623 women over 20 years old who had experienced relationship dissolution or problems with regular fashion stores in the areas of Seoul and Kyungki in September 2005. The SPSS 12.0 package and Amos program were used to analyze the data. The results of this study were as follows: First, service recovery justice of a fashion store, interactional justice, distributive justice, and procedural justice had effects on encounter satisfaction. Furthermore, encounter satisfaction influenced relationship dissolution behavior, voice, exit, loyalty, neglect via overall satisfaction. Second, there were differences in relationship dissolution behavior according to consumer loyalty and switching costs.

• Journal of the Korean Society of Clothing and Textiles
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• v.37 no.2
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• pp.202-212
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• 2013

Outstanding service quality is a crucial factor to increase customer revisits, to increase customer revisits, to create new customers through positive word-of-mouth marketing and increase profits; in conjunction, the physical environment of department stores have a firsthand impact on customer purchasing behavior. This study examines the physical environment dimensions of department stores in China and the causal relationship with the physical environment, service environment, internal responses and store loyalty. The subjects in this study were male and female adults who finished the shopping the Lotte and Wangfujing Department Store located in Beijing. All participants were over the age of 20 and a one-on-one survey was conducted to gather data from October to November 2011. Data from 424 respondents were analyzed: in addition, AMOS factor analysis and path analysis were used. The results were as follows. First, physical environment factors consist of exterior aesthetic attraction, convenience, cleanliness and an interior aesthetic attraction. Second, exterior aesthetic attraction, convenience and cleanliness affect the overall service environment perception. Third, the service environment exercised an influence on internal responses, and internal responses impacted store loyalty. Fourth, a comparative analysis was made over Korean and Chinese department stores in China to check the research model. In Wangfujing Department Store, exterior aesthetic attraction, cleanliness and convenience had a statistically significant impact on service environment perceptions. In Lotte Department Store, the perception of service environment was under the statistically significant influence of all physical factors (exterior aesthetic attraction, interior aesthetic attraction, convenience and cleanliness). The findings of this study are helpful for Korean Department stores that plan to make inroads into China to formulate efficient service environment strategies tailored to local consumer characteristics.

• Asia Marketing Journal
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• v.12 no.4
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• pp.137-164
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• 2011

In the past, retailers secured customer loyalty by offering convenient locations, unique assortments of goods, better services than competitors, and good credit policy. All this has changed. Goods assortments among stores have become more alike as national-brand manufacturers place their goods in more and more retail stores. Service differentiation also has eroded. Many department stores have trimmed services, and many discount stores have increased theirs. Customers have become smarter shoppers. They don't pay more for identical brands, especially when service differences have diminished. In the face of increased competition from discount storess and specialty stores, department stores are waging a comeback war. Growth of intertype competition, competition between store-based and non-store-based retailing and growing investment in technology are changing the way consumers shop and retailers sell. Different types of stores-discount stores, catalog showrooms, department stores-all compete for the same consumers by carrying the same type of merchandise. The biggest winners are retailers that have helped shoppers to be economically cautious, simplified their increasingly busy and complicated lives, and provided an emotional connection. The growth of e-retailers has forced traditional brick-and-mortar retailers to respond. Basically brick-and-mortar retailers utilize their natural advantages, such as products that shoppers can actually see, touch, and test, real-life customer service, and no delivery lag time for small-sized purchases. They also provide a shopping experience as a strong differentiator. They are adopting practices as calling each shopper a "guest". The store atmosphere should match the basic motivations of the shopper. If target consumers are more likely to be in a task-oriented and functional mindset, then a simpler, more restrained in-store environment may be better. Consistent with this reasoning, some retailers of experiential products are creating in-store entertainment to attract customers who want fun and excitement. The retail experience must deliver value to turn a one-time visitor into a loyal customer. Retailers need a tool that measures the full range of components that define experience-based value. This study uses an experiential value scale(EVS) developed by Mathwick, Malhotra and Rigdon(2001) which reflects the benefits derived from perceptions of playfulness, aesthetics, customer "return on investment" and service excellence. EVS is useful to predict differences in shopping preferences and patronage behavior of customers. EVS consists of items measuring efficiency, economic value, visual appeal, entertainment value, service excellence, escapism, and intrinsic enjoyment, which are subscales of experiencial value. Efficiency, economic value, service excellence are linked to the utilitarian shopping value. And visual appeal, entertainment value, escapism and intrinsic enjoyment are linked to hedonic shopping value. It has been found that consumers value hedonic experiences activated from escapism and attractiveness of shopping environment as much as the product quality, price, and the convenient location. As a result, many department stores, discount stores, and other retailers are introducing differential marketing strategy based on emotional/hedonic values. Many researches suggest that consumers go shopping not only for buying products but also for various shopping experiences. In other words, they seek the practical, rational value as well as social, recreational values in the shopping process(Babin et al, 1994; Bloch et al, 1994). Retailers may enhance buyer's loyalty to store by providing excellent emotional/hedonic value such as the excitement from shopping, not just the practical value of buying good products efficiently. We investigate the effect of perceived shopping values on the emotional experience and store loyalty based on the EVS(Experiential Value Scales) developed by Holbrook(1994), Mathwick, Malhotra and Rigdon(2001). This study assumes that the relative effect of shopping value dimensions on the responses of shoppers will differ according to types of stores and analyzes the moderating effect of store type(department store VS. discount store) on the causal relationship between shopping value dimensions and store loyalty. Emprical results show that utilitarian values of shopping experience and hedonic value of shipping experience give the positive effect on the emotional response of consumers and store loyalty. We also found the moderating effect of store types. The effect of utilitarian shopping values on the attitude toward discount store is higher than the effect of utilitarian shopping values on the attitude toword department store. And the effect of hedonic shopping value on the emotional response to discount store is higher than on the emotional response to department store. The empirical results reflect on the recent trend that discount stores try to fulfill the hedonic needs of consumers as well as utilitarian needs(i.e, low price) that discount stores traditionally have focused on

• Journal of Distribution Science
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• v.12 no.5
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• pp.5-13
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• 2014

Purpose - We seek feasible strategies to draw customers into a state of attitudinal/behavioral loyalty through perceived quality and perceived risk in the experienced food industry. Research design, data, and methodology - We utilize the LISREL model to examine the cause and effect relationships between customer loyalty, perceived quality, perceived risk, and three marketing proposals (brand image, store image, and promotion). We employed the quota sampling method to conduct the survey questionnaires, collecting365 effective customer samples in coffee shops/stores in Taipei City. Results - We find that store image substantially benefits consumer loyalty through perceived quality. Marketing managers can enhance store environment and atmosphere to elicit both attitudinal and behavioral aspects of customer-perceived quality and loyalty. Conclusions - This is the first paper to investigate simultaneously customer loyalty across brand image, store image, and promotion/marketing proposals in the food industry. Managers can promote brand image and store image at the same time to enhance customer-perceived quality.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.195-206
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• 2022

The purpose of this paper is to examine how loyalty programs designed by retail stores affect customer retention. The present study is one of the few empirical studies finding the role of different loyalty programs that help to build customer retention. The study also seeks to explore the moderation role of customer perceived value between intrinsic motivation - customer retention and extrinsic motivation - customer retention. The researchers employed a quantitative research design to collect data from the 350 respondents who purchased goods from the retail chain/departmental stores in Bangladesh. The collected data are then analyzed using structural equation modeling. The result of their findings indicated that the size of the organizational reward has a positive effect on intrinsic and extrinsic motivation; further extrinsic motivation has a significant relation to customer retention. Surprisingly, no support was found for the positive impact of intrinsic motivation on customer retention. Customer perceived value (CPV) is critical as a moderator in building client retention, which improves the positive association between extrinsic motivation and customer retention. CPV, on the other hand, was found to mitigate the negative link between intrinsic motivation and client retention.