Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.10 No.2 pp.39-49

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:
** 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:
December 18, 2018. January 06, 2019. February 05, 2019.


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







    1. Aaker, J., Fournier, S., & Brasel, S. A. (2004). When good brands do bad. Journal of Consumer Research, 31(1), 1-16.
    2. Akerlof, G. A. (1982). Labor contracts as partial gift exchange. The Quarterly Journal of Economics, 97(4), 543-569.
    3. Akiyama, H., Antonucci, T. C., & Campbell, R. (1997). Exchange and reciprocity among two generations of Japanese and American women. The Cultural Context of Aging: Worldwide Perspectives, 163-178.
    4. Anderson, E., & Jap, S. D. (2005). The dark side of close relationships. MIT Sloan Management Review, 46(3), 75.
    5. Aldrich, H. E., & Fiol, C. M. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645-670.
    6. Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.
    7. Balmer, J. M. T. (1997). Corporate Identity and the Advent of Corporate Marketing. Forthcoming.
    8. Ben-Porath, Y. (1980). The F-connection: Families, friends, and firms and the organization of exchange. Population and Development Review, 6(1), 1-30.
    9. Berry, L. L. (1995). Relationship Marketing of Services-Growing Interest, emerging Perspectives. Journal of the Academy of Marketing Science, 23(4), 236-245.
    10. Blau, P. (1964). Exchange and Power in Social Life. New York, NY: Wiley.
    11. Bolton, R. N., & Drew, J. H. (1991). A longitudinal analysis of the impact of services changes on customer attitudes. Journal of Marketing, 55(1), 1–9.
    12. Bowen, J. T., & Chen, S. L. (2001). The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 13(5), 213-217.
    13. Boyd, B. K., Bergh, D. D., & Ketchen, D. J. Jr. (2010). Reconsidering the reputation—performance relationship: A resource-based view. Journal of Management, 36(3), 588-609.
    14. Caruana, A., Money, A. H., & Berthon, P. R. (2000). Service quality and satisfaction – the moderating role of value. European Journal of Marketing, 34(11/12), 1338-1352.
    15. Chang, T. Z., & Wildt, A. R. (1994). Price, product information, and purchase intention : An empirical study. Journal of the Academy of Marketing Science, 22(1), 16–27.
    16. Chang, W. S., Roh, S. S., & Gye, S. J. (2009). Brand Reputation factor effect on Attitudinal Loyalty and Behavioral Loyalty in Cosmetic Brand : Based on Mediation Effect of Attitudinal Loyalty. The Korean Journal of Advertising, 20(5), 131-153.
    17. Chen, X., Chen, Y., & Guo, S. (2018). Relationship between organizational legitimacy and customer citizenship behavior: A social network perspective. Social Behavior and Personality: an international journal, 47(1), 1-14.
    18. Chen, P. T., & Hu, H. H. (2010). The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry. International Journal of Hospitality Management, 29(3), 405-412.
    19. Choi, S. (2018). Effects of customer relationship quality, customer perceived power, and brand reputation on compliant behaviors. Journal of Distribution Science, 14(9), 111-120.
    20. Choi, S. (2018). A study on salesperson brand relationships, customer orientation, and customer store loyalty, Journal of Distribution Science, 16(11), 57-64.
    21. Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, 95-120.
    22. Cronin, J. J. Jr., Brady, M. K., & Hult, G. T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76(2), 193-218.
    23. Dellarocas, C., Dini, F., & Spagnolo, G. (2006). Designing Reputation (Feedback) Mechanisms.
    24. Echchakoui, S. (2016). Relationship between sales force reputation and customer behavior: Role of experiential value added by sales force. Journal of Retailing and Consumer Services, 28, 54-66.
    25. Erdem, T., Swait, J., & Louviere, J. (2002). The impact of brand credibility on consumer price sensitivity. International Journal of Research in Marketing, 19(1), 1-19.
    26. Erevelles, S., & Nobuyuki, F. (2013). The Role of Affect in Personal Selling and Sales Management. Journal of Personal Selling and Sales Management, 33(1), 7-24.
    27. Evanschitzky, H., Ramaseshan, B., Woisetschläger, D. M., Richelsen, V., Blut, M., & Backhaus, C. (2012). Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science, 40(5), 625-638.
    28. Fincham, F. D., & Bradbury, T. N. (1987). Cognitive processes and conflict in close relationships: An attribution-efficacy model. Journal of Personality and Social Psychology, 53(6), 1106.
    29. Flint, D. J., & Woodruff, R. B. (2001). The initiators of changes in customers’ desired value. Industrial Marketing Management, 30(4), 321-337.
    30. Fombrun, C. J., & Rindova, V. (1996). Who’s tops and who decides? The social construction of corporate reputations. New York University, Stern School of Business, Working Paper, 5-13.
    31. Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382-388.
    32. Frenzen, J. K., & Davis, H. L. (1990). Purchasing behavior in embedded markets. Journal of Consumer Research, 17(1), 1-12.
    33. Garcia-Fernandez, J., Galvez-Ruiz, P., Fernandez-Gavira, J., Velez-Colon, L., Pitts, B., & Bernal-Garcia, A. (2018). The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers. Sport Management Review, 21(3), 250-262.
    34. Gitomer, J. H. (1998). Customer Satisfaction is Worthless, Customer Loyalty is Priceless: How to Make Customers Love you, Keep Them Coming Back and Tell Everyone They Know. Austin, TX: Bard Press.
    35. Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481-510.
    36. Groth, M. (2005). Customers as good soldiers: Examining citizenship behaviors in internet service deliveries. Journal of Management, 31(1), 7-27.
    37. Gummesson, E. (2002). Relationship marketing and a new economy: it’s time for de-programming. Journal of Services Marketing, 16(7), 585-589.
    38. Herbig, P., & Milewicz, J. (1993). The relationship of reputation and credibility to brand success. Journal of Consumer Marketing, 10(3), 18-24.
    39. Hwang, Y. H., Kang, Y. Y., & Yoon, S. J. (2014). The impacts of corporation reputation on the perceived store attribution, loyalty and store equity. Proceedings of the Korean Academic Association of Business Administration Conference, 11, 257-280.
    40. Jack, S. L., & Anderson, A. R. (2002). The effects of embeddedness on the entrepreneurial process. Journal of Business Venturing, 17(5), 467-487.
    41. Jacobs, R. S., Evans, K. R., Kleine, R. E. III., & Landry, T. D. (2001). Disclosure and its reciprocity as predictors of key outcomes of an initial sales encounter. Journal of Personal Selling & Sales Management, 21(1), 51-61.
    42. Jung, S. H., Goo, H. K., Kim, J. H., & Kim, S. Y. (2014). The Effect of Attitude and loyalty on Consumption Values by the Firm types. Journal of the Korea Service Management Society, 15(5), 255-276.
    43. Katrine, D., & Harini, C. (2018). The analysis of effect of sense, feel, think, act, and relate as the experiential marketing variables to customer loyalty of Andelir hotel Samarang. Journal of Management, 4(4), 1-19.
    44. Kim, K. E., & Cho, S. D. (2011). Antecedents and Roles of Relational Embeddedness in the relationship between Service Employees and Customers. Korea Marketing Review, 26(3), 15-41.
    45. Krishnamurthi, L., & Raj, S. P. (1991). An empirical analysis of the relationship between brand loyalty and consumer price elasticity. Marketing Science, 10(2), 172-183.
    46. Kuo, Y. F., Wu, C. M., & Deng, W. J. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25(4), 887-896.
    47. Leblanc, G., & Nguyen, N. (1999). Listening to the customer’s voice: examining perceived service value among business college students. International Journal of Educational Management, 13(4), 187-198.
    48. Lee, B. C., Ang, L., & Dubelaar, C. (2005). Lemons on the Web: A signalling approach to the problem of trust in Internet commerce. Journal of Economic Psychology, 26(5), 607-623.
    49. Levy, M. (2018). State incentives to promote organ donation: honoring the principles of reciprocity and solidarity inherent in the gift relationship. Journal of Law and the Biosciences.
    50. Levy, M., & Sharma, A. (1994). Adaptive selling: the role of gender, age, sales experience, and education. Journal of Business Research, 31(1), 39-47.
    51. Liljander, V., & Strandvik, T. (1993). Estimating zones of tolerance in perceived service quality and perceived service value. International Journal of Service Industry Management, 4(2), 6-28.
    52. Lin, N. (2017). Building a network theory of social capital, In Social capital (pp. 3-28). Abingdon-on-Thames, England: Routledge.
    53. McKeever, E., Anderson, A., & Jack, S. (2014). Entrepreneurship and mutuality: social capital in processes and practices. Entrepreneurship & Regional Development, 26(5-6), 453-477.
    54. Moon, Y. H., & Choi, J. H. (2012). Felt Obligation as a Mediator of Customer Contact-Loyalty Relationships. Journal of Product Research, 30(3), 91-99.
    55. Morris, R. D. (1987). Signalling, agency theory and accounting policy choice. Accounting and Business Research, 18(69), 47-56.
    56. Nguyen, H., Groth, M., Walsh, G., & Hennig‐Thurau, T. (2014). The impact of service scripts on customer citizenship behavior and the moderating role of employee customer orientation. Psychology & Marketing, 31(12), 1096-1109.
    57. Nothwehr, D. M. (2005). Mutuality: A Formal Norm for Christian Social Ethics. Eugene, OR: Wipf and Stock Publishers.
    58. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (McGraw-Hill Series in Psychology) (Vol. 3). New York, NY: McGraw-Hill.
    59. Oliver, R. L. (1999). Whence consumer loyalty?. Journal of Marketing, 63, 33-44.
    60. Organ, D. W. (1997). Organizational citizenship behavior: It's construct clean-up time. Human Performance, 10(2), 85-97.
    61. O'Reilly, C. A., & Chatman, J. (1986). Organizational commitment and psychological attachment: The effects of compliance, identification, and internalization on prosocial behavior. Journal of Applied Psychology, 71(3), 492.
    62. Ou, W. M., Shih, C. M., Chen, C. Y., & Tseng, C. W. (2012). Effects of ethical sales behaviour, expertise, corporate reputation, and performance on relationship quality and loyalty. The Service Industries Journal, 32(5), 773-787.
    63. Park-Poaps, H., & Kang, J. (2018). An experiment on non-luxury fashion counterfeit purchase: the effects of brand reputation, fashion attributes, and attitudes toward counterfeiting. Journal of Brand Management, 25(2), 185-196.
    64. Park, J. H., Kim, D. Y., & Kim, S. H. (2006). The Effect of Cheong on Behavior Intention in the Service Industry. Asia Marketing Journal, 8(1), 77-104.
    65. Park, H. H., & Jung, G. O. (2010). Study on the Impact of the Congruence of Store Personality and Self-Image toward Relationship Strength and Store Loyalty. Journal of Marketing Studies, 18(2), 45-68.
    66. Park, S., Lee, Y., & Yoo, D. (2015). Effect of Perceived Value on Memories, Attitudes, and Loyalty. Journal of Distribution Science, 13(12), 73-84.
    67. Portes, A., & Sensenbrenner, J. (1993). Embeddedness and immigration: Notes on the social determinants of economic action. American journal of sociology, 98(6), 1320-1350.
    68. Raghubir, P. (1998). Coupon value: a signal for price?. Journal of Marketing Research, 35(3), 316-24.
    69. Rassega, V., Troisi, O., Torre, C., Cucino, V., Santoro, A., & Prudents, N. (2015). Social Networks and the Buying Behavior of the Consumer. Journal of Global Eonomics, 3(4), 163-168.
    70. Reichheld, F. F., & Sasser, J. W. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105-111.
    71. Reynolds, K. E., & Arnold, M. J. (2000). Customer loyalty to the salesperson and the store: examining relationship customers in an upscale retail context. Journal of Personal Selling & Sales Management, 20(2), 89-98.
    72. Rosenberg, L. J., & Czepiel, J. A. (1984). A marketing approach for customer retention. Journal of Consumer Marketing, 1(2), 45-51.
    73. Seay, T., Seaman, S., & Cohen, D. (1996). Measuring and Improving the Quality of Public Services: A Hybrid Approach.
    74. Selnes, F. (1993). An examination of the effect of product performance on brand reputation, satisfaction and loyalty. European Journal of Marketing, 27(9), 19-35.
    75. Shi, G., Shi, Y. Z., Chan, A. K., & Wang, Y. (2009). Relationship strength in service industries: a measurement model. International Journal of Market Research, 51(5), 1-20.
    76. Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66(1), 15–37.
    77. Snoj, B., Korda, A. P., & Mumel, D. (2004). The Relationships among Perceived Quality, Perceived Risk and Perceived Product Value. Journal of Product and Brand Management, 13(3), 156-167.
    78. Slater, S. F., & Narver, J. C. (2000). The positive effect of a market orientation on business profitability: A balanced replication. Journal of Business Research, 48(1), 69-73.
    79. Suh, M. S., Kang, M. J., & Ahn, J. W. (2010). The Roles of Customer Participation Behavior and Citizenship Behavior in the Relationship Development. Korea Marketing Review, 25(1), 159-193.
    80. Tadajewski, M. (2009). Eventalizing the marketing concept. Journal of Marketing Management, 25(1-2), 191-217.
    81. Ulaga, W., & Chacour, S. (2001). Measuring customer-perceived value in business markets: a prerequisite for marketing strategy development and implementation. Industrial Marketing Management, 30(6), 525-540.
    82. Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35-67.
    83. Wilensky, H. L., & Lawrence, A. T. (1979). Job assignment in modern societies: A re-examination of the ascription-achievement hypothesis. Societal Growth: Processes and Implications, 202-248.
    84. Woolcock, M., & Narayan, D. (2000). Social capital: Implications for development theory, research, and policy. the World bank Research Observer, 15(2), 225-249.
    85. Woo, M. N. (2018). Antecedents of Customer Citizenship Behavior in Airline Service: Focusing on Customer Satisfaction and Loyalty. Journal of Aviation Managment Society of Korea, 16(3), 3-22.
    86. Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology & Marketing, 21(10), 799-822.
    87. Yi, Y., & Gong, T. (2008). The effects of customer justice perception and affect on customer citizenship behavior and customer dysfunctional behavior. Industrial Marketing Management, 37(7), 767-783.
    88. Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.