The Effect of Franchise SERVQUAL on the Pre & Post Opening Satisfaction and the Business Performance

Abstract

This study is designed to examine the effect of franchise SERVQUAL on business satisfaction and business performance, and examined previous studies, herewith designed research model based on it. In order to select a brand before starting a business, business owners who run a franchise restaurant were investigated the factors that were important to them and the satisfaction level after the business proceeds. By analyzing how satisfaction with the business affects business performance, it aims to provide implications for the criteria for efficient brand selection to prospective entrepreneurs who wish to start a business as a franchise in the future. The questionnaire survey was conducted on business owners running chicken franchises in all areas of Seoul. A frequency analysis was conducted to analyze the demographic characteristics of the survey subjects. Factor analysis and reliability analysis were performed to verify the validity and reliability of the measurement tool, and the hypothesis was verified through multiple regression analysis. The detailed research results are as follows. First, franchise SERVQUAL was found to have a significant effect on satisfaction before and after opening. Second, it was found that satisfaction before and after franchise opening had a significant effect on market performance and contract renewal performance. If the franchise outlet operators are satisfied with the SERVQUAL components such as responsiveness, assurance, empathy, convenience, reliability, quality of materials and information system before or after opening, it is possible to predict that sales will increase and opportunities for renewal will increase. This is meaningful in presenting comprehensive business performance improvement plans to prospective entrepreneurs and headquarter business associates who choose a franchise business in the future.