Projects-MR(Special Topics in Marketing Research)-Group10 Check Fun-Group10_Check Fun Final Report
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Transcript of Projects-MR(Special Topics in Marketing Research)-Group10 Check Fun-Group10_Check Fun Final Report
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Check Fun, is it fun?
The customers’ satisfaction of Check Fun
by
洪雅涵 9631512
李侃紋 9631523
危芷燕 9631531
王培凌 9631533
Professor Charlie Trappey
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Table of Content
I. Abstract....................................................................................................................5
1. Introduction.............................................................................................................6
1.1 Research Background...................................................................................6
1.2 Research Motivation.....................................................................................8
2. Literature Review....................................................................................................9
2.1 Research Question......................................................................................10
3. Method Section......................................................................................................11
3.1Research Framework...................................................................................11
3.2 Hypothesis..................................................................................................11
3.3 Operational Definition of Variables............................................................13
3.4 Data Collection...........................................................................................13
3.5 Analysis Method.........................................................................................14
4. Results...................................................................................................................15
4.1 Background of the Sample Data.................................................................15
4.2 Analysis and Research Findings.................................................................17
5. Discussion and Conclusion...................................................................................21
6. Appendix...............................................................................................................23
6.1 The rental of MRT station...........................................................................23
6.2 Check fun customer’s satisfaction questionnaire........................................24
7. References.............................................................................................................26
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Table of Tables
Figure1. The nucleonic role of satisfaction 10..........................................................................4
Table1 Definition of variables.................................................................................................12
Table2 ANOVA of model 1 ....................................................................................................18
Table3 ANOVA of model 2.....................................................................................................19
Table4 regression result..........................................................................................................19
Table5 Coefficient of Determination.......................................................................................20
Table of Figures
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Figure1. The nucleonic role of satisfaction..................................................................10
Figure2. The research structure....................................................................................11
Figure3. The distribution of sex...................................................................................16
Figure4. The age of samples.........................................................................................16
Figure5. The age of male samples................................................................................16
Figure6. The age of female samples.............................................................................16
Figure7. The occupation of samples.............................................................................16
Figure8. The income of samples..................................................................................16
Figure9. Samples spend at Check Fun per month........................................................17
Figure10. The area that samples visit mostly...............................................................17
Figure11. Times of shopping per month.......................................................................17
I. Abstract
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We want to observe the emerging stores called “Check Fun” in Taiwan. To see
how it works? What kind of benefit it brings and how people accept it and build
loyalty to Check Fun. In the research we find out the relationship of perceived
performance and satisfaction is not significant; perceived performance is positive
related to loyalty and also satisfaction has positive relationship to loyalty. After
analysis our questionnaires we found several way. Check Fun can improve to better
serve customers.
Key word: Check Fun; Perceived Performance; Satisfaction; Loyalty
1. Introduction
1.1 Research Background
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The idea of Check Fun is originally from Japan and Hong Kong, where the rent
in business district is extremely high. Some stores rent additional space to other
people to cover some rent expense. People expand this concept then it became
Gezaipu /Checker Depot in Hong Kong, and Box Shop in Japan .In Taiwan, there
comes Check Fun.
The concept of Check Fun is “sharing the rent”. We all know that location is
everything. The most important thing about opening a store is location, second
important thing – location, third – location. But for the start-ups good location means
a lot of money. And then there comes “Check Fun”. Check Funs are all located near
the MRT stations, where a lot of people come and go around and the rent is very
expensive.
Check Fun provide space for people to display their products but with not much
money. The emerging of Check Fun makes it not a dream for many startups to own a
mini store at golden business district. And they don’ t even need to spend their time
and energy operating it. There are about 300 boxes in a store and the rent is from $688
to $2088 per month. It depends on which place you choose to take. Because the rent is
affordable for almost everyone, many new designers expand their territory from
Internet to Check Fun in order to attract more people. Designers display part of their
work at their own little box where they can decorate by their wish. We can say that
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Check Fun is like a miniature department store or a window display.
Check Fun also solves a big problem for many on line sellers to see is to believe.
E-commerce stores are so popular because of the low entry barrels-- Zero fix-cost,
they can always sell products that are cheaper than physical stores. But there is one
drawback: buyers can’t see the products by themselves nor can they touch, buyers can
not be sure about the quality of the products (Jen-Her& Yu-Min, 2006). While in
physical stores, buyer can make transaction right away, also they can test the products
see if it’s alright and it’s always better to know where you can find the sellers. Check
Fun kind of make it possible for on-line sellers find a way to solve the problem. Many
on line sellers complain that even though they had provided enough detail information
to customers, it seems they always have doubt. Now, on line sellers can finally let the
customers see the real products, in that way people reduce their feeling of uncertainty
about the products. It’s a funny phenomenon that from physical stores we transfer to
virtual stores and then again physical.
Not only people having goods to sell rent the box, people who want to advertise
also do. Some brands, even they have their own stores, they still rent a place here
because it’s a way to increase the opportunity to seen by potential consumers. For
those who only want to do advertisement, Check Fun also provide cool card window,
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where you can put your DM there, even some churches put their DM there hoping to
drag more people to the church and wash their sin.
Though Check Fun have only established for only one year, but they have to face
their competitors now, named Art-collec. Art-collec claimed they can provide more
service: cash flow management, using ERP to do inventory management, give renters
marketing analysis information. Not only Art-collec, there are a lot of this kind of
stores continually opening one another.
1.2 Research Motivation
Some people doubt that Check Fun can survive, because it doesn’t have a theme,
too many genres of products and lack of product quality control. The store seems
disorganized. And because any one can rent a box selling whatever he or she wants,
consumers never know what they can find here. Basically the shopping pattern here is
impulsive shopping, consumers don’t exactly know what they want to buy or find
here. And another problem is with so many products in crowded store, how can
consumers make choice? And how can each box drags consumers attention? And for
the shoppers, does Check Fun give them what they want? They should really think
more.
There are more than 50 stores are similar to Check Fun in Taipei area. Lots of
copy cats are waiting to make a share of this business. The idea of Check Fun sounds
great and definitely feasible but can it survive when surrounded by so many
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competitors? Will people build loyalty to Check Fun?
2. Literature Review
We know that the loyalty comes from customer’s satisfaction, and satisfaction is
derived from excellent performance outcome. We define perceived performance as
beliefs regarding the products attributes, levels of attributes, or outcomes ( Calotte,
Woodruff, and Jenkins 1987). Performance as a direct antecedent of satisfaction (e.g,
Oliver 1980; Oliver and DeSarbo 1988). Customer satisfaction is widely recognized
as a key influence in the formation of consumers' future purchase intentions (Taylor
and Baker, 1994). Satisfied customers are also likely to tell others of their favourable
experiences and thus engage in positive word of mouth advertising (File and Prince,
1992). Dissatisfied customers, on the other hand, are likely to switch brands and
engage in negative word of mouth advertising. Generally, loyalty as been and
continues to be defined in some circles as repeat purchasing frequency or relative
volume of same-brand purchasing (Tellis, 1988). In Oliver (1997), satisfaction is
defined as pleasurable fulfillment. That is, the consumer senses that consumption
fulfills some need, desire, goal, or so forth and that this fulfillment is pleasurable.
Thus, satisfaction is the consumer’s sense that consumption provides outcomes
against a standard of pleasure versus displeasure. In Oliver’s six representations of
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satisfaction and loyalty (Figure1) suggests that satisfaction is an ingredient of loyalty
but only one of its components
2.1 Research Question
In this program, we want to use empirical data to test the relationship with
performance outcome, customer satisfaction and customer loyalty. We are interested
in this phenomenon and want to figure out whether this way can augment the business
or not. In customer’s perception section, we measure in 3 parts: staff service,
environment, and product. Then sum up these 3 parts to get the average perceived
performance.
We use overall satisfaction to measure customer satisfaction, Day (1977) took
satisfaction as an overall, broad concept, it’s ok to use one satisfaction measurement.
According to Jones and Sasser (1995), pointed out that customer’s loyalty means
customer repurchase intention for specific product or service, customer’s loyalty can
divide into short term and long term. Long term loyalty means consistently
purchasing behavior and not easily changed choice; short term loyalty means
Satisfaction
Loyalty
Figure1. The nucleonic role of satisfaction
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customers will leave whenever there comes better providers or products.
3. Method Section
3.1Research Framework
In this research, we try to understand that whether perceived performance has
positive effect to customer’s satisfaction and loyalty. The research structure is showed
as figure2:
Figure2 The research structure
3.2 Hypothesis
When perceived performance has been included in the model, a strong direct
relationship between perceived performance and satisfaction often has been found.
(Anderson, fornell, and lehmann 1994; Anderson and Sullivan 1993).So we assume
that perceived performance an antecedent and is positive related to customer
satisfaction.
H1: Perceived performance is positive related to customer satisfaction
OverallSatisfaction
Customer Loyalty
Perceived performance
Staff ServiceEnvironment
Product
H1
(+) H2
(+)
H3
(+)
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the consumer senses thatconsumption fulfills some need,desire, goal, or so forth and thatthis fulfillment is pleasurable.(Oliver, 1997)
Customer loyalty Loyalty as been and continues to be defined in some circles asrepeat purchasing frequency or relative volume of same-brand
purchasing (Tellis, 1988). InOliver(1997)
Short term
Long term
3.4 Data Collection
The participants are random selected on the internet and interviewers with
shopping experience at Check Fun. We collected totally 97 samples, only 44 samples
are valid.We delete the questionnaires that participants have never been to Check Fun.
Also, we regard the questionnaires that been filled incompletely as invalid samples
and delete them all. After that, we obtain the proportion of valid questionnaire about
45%.
3.5 Analysis Method
The primary research method of our study is software tools, like SPSS 12.0, and
measurement tools, that is, questionnaires, and we explained how we apply these tools
below:
Software tools: we use it to analysis the data collected by evaluating the
descriptive statistics and running the simple and multiple regression.
Measurement tools: we use the internet questionnaires and interviewing the
participants as our measurement tools. In our questionnaire, there are 25 close
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questions and 2 open questions.
There are five parts in our questionnaire. In the first part, we ask the participants
about the shopping experiences at Check Fun; then, we focus on obtaining the
information about the customer perceived quality as our second part. In this section,
we separate the questions into 3 aspects to measure the perceived performance, that is,
staff services, environment and products. The third part of the questionnaire consists
of the questions about the degree of satisfaction, and we have the questions about
customer loyalty in the fourth part of the questionnaire. Finally, we leave the basic
information about our respondents.
4. Results
4.1 Background of the Sample Data
According to our questionnaire, from our sample we found that most people who
have been to Check Fun are female (77%)(Figure3), age between 21 to 25(Figure 4).
There are 10 males in our sample (23%), the distribution of the males age(Figure5) is
as well as females (Figure6). Those simple are mostly students(Figure7) with
disposable income from NT5,001 to NT10,000(Figure8). The frequency to visit
Check Fun is about one time per month. Most people only did window shopping not
purchasing anything. In open questions, There are two samples spent NT3000 at
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Check Fun per month. In sum, per people
spent around NT.302.27 per month
averagely(Figure9). Most people visited
Check Fun in northern area because most
shops open in northern are, the total Check
fun franchise stores are 28, 23stores in northern of Taiwan(82%), 3 in Taichung(11%)
and 2 in Kaohsiung(7%).We can notice that the location number is relative to the area
where people patronize Check fun (Figure10). Over 50% samples only visit Check
Fun once a month( Figure11).
Figure3 The distribution of sex Figure4 The age of samples
Sex
male
female
23%
7%
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Figure5 The age of male samples Figure6 The age of female samples
Figure7 The occupation of samples Figure8 The income of samples
Figure9 Samples spend at Figure10 The area that samples visit mostly
Check Fun per month
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Figure11 Times of shopping per month
4.2 Analysis and Research Findings
To get representative research conclusion, we separate our questions in the
questionnaire into three segments, and evaluate the respondents with Likert Scale
from one point to five points. While one point represents the participant highly
disagree with our statement, five points represent the participant highly agree with our
statement.
In our research, we average the points in every segment. Through the calculation
for every participant, we use the figures to run the regressions about the hypotheses in
our study.
H1: Perceived performance is positive related to customer satisfaction
In the first hypothesis, we will examine whether the perceived performance is
positive related to customer satisfaction. To test the hypothesis, we use customer
satisfaction as a dependent variable and perceived performance as an independent
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variable in our model. Thus, our model 1 is:
S=a1P+c1, where S represents Customer Satisfaction, and P represents Perceived
Performance.
The following demonstrates our results.
Table2 ANOVA of model 1
Model 1 SS d.f. MS F test P-valueRegression .104 1 .104 1.245 .271Error 3.518 42 .08375Total 3.622 43
In the ANOVA Table2, we find that the p-value of our model is .271, which is
larger than the level of significance .05. Apparently, we do not reject our null
hypothesis, that is, perceived performance is not positive correlated to customer
satisfaction. The following table also shows that perceived performance is not a
probable variable to explain customer satisfaction.
However, lots of the papers we have read mention about the strong relation
between perceived performance and customer satisfaction. Instinctively, the service
quality, environment and the products quality that will affect the perceived
performance having been defined will affect customer satisfaction. There is no doubt
that customer will have higher satisfaction if the quality been perceived by customers
are higher.
It seems that our result does not accord with what have been found in other papers
and with what people will act actually. The probable reason is that we do not evaluate
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the perceived performance properly in our questionnaire. Perceived performance is
evaluated by customers with the combination of several aspects, however, only the
staff service, environment and product level variables have been involved into our
model. Since we do not cover some of the significant aspects of perceived
performance, this questionnaire perhaps is not representative enough to measure the
relationship between perceived performance and customer satisfaction.
H2: Customer satisfaction is positive related to customer loyalty
H3: Perceived performance is positive related to customer loyalty
In H2 and H3, we want to know if there is a positive relationship between perceived
performance and customer loyalty, so we use perceived performance and customer
satisfaction as independent variable and customer loyalty as dependent variable to fit
in the regression analysis. The regression model 2 as follow:
L=a2P2+b2S2+c2 (L: Loyalty, P: Pierced performance, S: Satisfaction, a2, b2, c2:
Constants)
Table3 ANOVA of model 2
Model 2 SS d.f. MS F test P-valueRegression 7.486 2 3.743 17.367 .000Error 8.836 41 .216Total 16.322 43
According to the table3, we can see the model is significant because the P-value is .
000 < α=.05.
Table4 regression result
Model 2 Estimator of Standard t P-value
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coefficient error Constant -1.619 .867 -1.866 .069Performance .658 .146 4.495 .000Satisfaction .741 .248 2.994 .005
From table 4, p-value for perceived performance and customer satisfaction are 0
and .005, respectively. Both of them are less than .05, which means these two
independent variables have effect to customer loyalty. Constant is not significant, the
sample regression line is L=.658P+.741S. Coefficient of performance is .658, which
means when perceived performance increases for 1 unit customer loyalty will increase
.658 unit, we can find out that there is a positive relationship between these two
variables, HX is supported. Coefficient S is .741, which means when customer
satisfaction increases for 1 unit customer loyalty will increase .658 unit, these two
variables are also positive related.
Table5 Coefficient of Determination
Mode 2 R square Adjusted R square.459 .432
From table 5, R 2 in this model is .459, it is not good. Maybe it is because there
are some criteria which affect customer loyalty did not put in this model. Adjusted R 2
is .432, less than original R 2. This result may be due to the colinearity between
Perceived performance and Customer satisfaction.
5. Discussion and Conclusion
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According to the questionnaire, the frequency of purchase and spend at Check
Fun per month both are lower. Consumers repurchase intension is not high, the
reasons they won’t want to visit again are (1) disorganized store, too many products
without well planned to display. (2) no theme, no intention to shop there in purpose.
(3) consumers can always find cheaper products on line.
First, the items are placed in disorganized way, because products are all pins or
pretty-pretty goods, there is no standard pattern to place. Customers may pick up
goods and take a look then put them back at wrong places, which makes them look
more disorder. Then, the stores are sellers-oriented, sellers can choose sell candy this
week, teddy bears next week, it is lack of clear positioning.
Second, without specific theme. Customers said unless they happened to pass by
the store or they won’t shop there in purpose. People don’t know the value proposition
of Check Fun, it’s not a 10 dollar shop, nor a gift shop, not even a boutique. The
positioning is pretty unclear.
Third, it is not as cheap as on line shop. Sellers still need to share out the rental
expenses to the price of the products. For customers who want to buy in low price, it’s
better for them to shop on line.
Finally, we have some comments for Check Fun, Check Fun should improve
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their quality control and select more interesting goods and do more classification.
They should mark the price more clearly, and make a clearer positioning.
6. Appendix
6.1 The rental of MRT station
MRT Station 2004-2006 store rental
(NT10,000/ square meters)
2007-2008 store rental
(NT10,000/ square meters)
Change
ratio(%)
Zhongxiao Fuxing 1.6-2.0 2.5-3.2 30Ximen 1.8-2.4 2.0-3.0 19Taipei Main Station 1.5-2.0 2.0-2.5 28.5Shiin 1.4-1.8 1.8-2.3 28.1Gongguan 1.5-1.8 1.8-2.2 21.2Jingei 0.35-0.45 0.5-0.6 22.2Xinpu 0.4-0.6 0.7-1.1 80
Nanshijiao 0.4-0.6 0.6-0.9 50Fuzhong 0.5-0.7 0.8-1.2 66
Resource:Hsin Yuan Busiess Rehouse
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6.2 Check fun customer’s satisfaction questionnaire
Questionnaire description: in order to understand your opinion about service of
check fun, please answer the following questions according to your personal
perception and experience. Thank you for your cooperation.
Part 1: Experience Survey
1. Have you ever been to check fun
□Yes, please continue answer.
□No, the questionnaire ends here, thank you very much.
Part 2: Perceived Performance
2. Is service employee’s attitude kind
3. The speed of checking is fast
4. Service employees’ looks are neat
5. The atmosphere in the shopping environment lets me feel relax
6. The store location transportation is convenient
7. I like the design of the shop display window very much
1 2 3 4 5□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
Agreement meter: 1(Disagree) →5(Agree)
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
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8. In the shop commodity combination lets me feel interested
9. The commodity price indication is clear
10. There are many types of commodity arrangement
Part 3: Customer’s Satisfaction
11. I feel satisfied after shopping at Check Fun
12. After shopping at Check Fun, I like this store
13. During the process of shopping at Check Fun, I feel disappointed
14. After shopping at Check Fun, I don’t feel good about this store
15. Over all I feel satisfied about Check Fun
Part 4: Customer Loyalty
16. I will recommend check fun to my relatives and friends
17. I will talk about Check Fun in positive side of opinion.
18. I would want to come back to check fun and shop again
19. I will only shop at Check Fun when I need to purchase items
Part 5: Basic Information
20.gender: □male □female
21. Ages:
□Below 15 □16~20 □21~25 □26~30 □ove31
22. Income:
□below 5000 □5000~10000 □10000~15000 □15000~20000 □over20000
23. Occupation:
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
□ □ □ □ □
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□office holder or military □business man or service □information industry
□manufacturer □freelance □student □housekeeper □none(include retiree)
□other
24. Which area do you visit mostly?
□North area □middle area □south area
25. Frequency of shopping in check fun
□0 □1 □2 □3 □over 4 times per month
26. How much do you spend at Check Fun per month?
27. What kind of products do you want to buy here in the future, and do you have any
comment to check fun:
This questionnaire ends here, thank you very much.
7. References
Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction,
market share, and profitability: Findings from sweden. Journal of Marketing,
58(3), 53-66.
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Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of
customer satisfaction for firms. Marketing Science, 12(2), 125-143.
Cadotte, E. R., Woodruff, R. B., & Jenkins, R. L. (1987). Expectations and norms in
models of consumer satisfaction. Journal of Marketing Research, 24(3), 305-
314.
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