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ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.10 No.2 pp.39-49
DOI : http://dx.doi.org/10.13106/ijidb.2019.vol10.no2.39

The Effects of Franchise Customers’ Acquisition Utility and Exchange Utility on Customer Loyalty and Customer Citizenship Behavior

Sang-Duck Kim*,Hyang-Mi Im**,Ki-Hong Seo***,Ok-Sook Yoon****,Jong-Hun Kim*****
* First Author, Professor, Department of Business Administration, Kyungnam University, Korea. E-mail: sdkim@kyungnam.ac.kr
** Doctoral Candidate, Department of Business Administration, Kyungnam University, Korea.
*** Doctoral Candidate, Department of Business Administration, Kyungnam University, Korea.
**** Doctoral Candidate, Department of Business Administration, Kyungnam University, Korea.
***** Corresponding Author, Doctoral Candidate, Department of Business Administration, Kyungnam University, Korea. Tel:+82-55-243-2329. E-mail: nudge23@naver.com
December 18, 2018. January 06, 2019. February 05, 2019.

Abstract

Purpose - Customer loyalty and citizenship behavior are key success factors of franchise system. They make the management of franchisee more effective and efficient. Prior studies, however, mainly dealt with only acquisition utility of customer, such as perceived product/service quality and brand reputation to explain customer loyalty and citizenship behavior, which explains only on one side. We tried to investigate the effect of exchange utility of customer, such as relationship strength and psychological obligation together with the acquisition utility. In addition, we tried to investigate the relationship between customer loyalty and citizenship behavior in franchise context.
Research design, data, and methodology - This study used data collected from the dining franchisee managers of 342 franchisors in South Korea. The franchisors consist of more than ten franchisees, the majority of which participated directly in the transaction with franchisor and have worked for more than six months. To test the hypotheses, the study used structural equation model analysis.
Results - H1-1, 1-2, 1-3 predicted that acquisition utility would increase customer loyalty to franchisee. In support of H1-1, 1-2, 1-3, the results indicated that acquisition utilities such as perceived product value, perceived service value, and franchise brand reputation had positive effects on customer loyalty. H2-1, 2-2 predicted that exchange utility would increase customer loyalty to franchisee. In support of H2-2, the result indicated that psychological obligation had positive effects on customer loyalty like other acquisition utilities. However, H2-1 was not supported. Relationship strength had no significant effect on customer loyalty. H3 predicted that customer loyalty would increase customer citizenship behavior. In support of H3, the results indicated that customer loyalty had positive effect on customer citizenship behavior. Overall, the evidences generally supported the hypotheses.
Conclusion - The results of the study show that not only acquisition utility but also exchange utility increases customer loyalty to franchisee and also show that customer loyalty increases customer citizenship behavior. Interestingly, however, relationship strength has no significant effect on customer loyalty. These results have two implications. The one is that increasing exchange utility can improve customer loyalty as acquisition utility can. The other one is that both of customer utilities can improve customer citizenship via customer loyalty.

JEL Classifications: L81, M12, M30

외식 프랜차이즈 고객의 획득효용과 교환효용이 고객충성도와 고객시민행동에 미치는 영향

김상덕*,임향미**,서기홍***,윤옥숙****,김종헌*****

초록


     

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