Projects-MR(Special Topics in Marketing Research)-Group10 Check Fun-Group10_Check Fun Final Report

8/6/2019 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

http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=boutique

http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=boutique



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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.

Day, R. L. (1977). Extending the concept of consumer satisfaction. Advances in

Consumer Research, 4(1), 149-154.

File, K. M., Cermak, D. S. P., & Prince, R. A. (1994). Word-of-mouth effects in

professional services buyer behaviour. The Service Industries Journal, 14(3),

301-314.

Jones, TO and Sasser,WE. (1995). WhySatisfiedCustomersDefect. Harvard Business

Review, 73(6), 88-99.

Jen-Her Wu and Yu-Min Wang.(2006). Development of a tool for selecting mobile

shopping site: A customer perspective. Electronic Commerce Research and

Applications, 5 (2006) 193-194.

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of

satisfaction decisions. Journal of Marketing Research, 17 (4), 460-469.



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Oliver, R. L., & DeSarbo, W. S. (1988). Response determinants in satisfaction

judgments. Journal of Consumer Research, 14(4), 495.

Taylor, S. A., & Baker, T. L. (1994). An assessment of the relationship between

service quality and customer satisfaction in the formation of consumers’

purchase intentions. Journal of Retailing, 70(2), 163-178.

Tellis, G. J. (1988). Advertising exposure, loyalty, and brand purchase: A two-stage

model of choice. Journal of Marketing Research, 25(2), 134-144.

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Projects-MR(Special Topics in Marketing Research)-Group10 Check Fun-Group10_Check Fun Final Report

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