In recent years real estate brokerage is facing a great difficulty. Internationally as real estate service industry opens up its doors abiding by open trade policy and moreover real estate brokerage becomes an open market, external environments are r...
In recent years real estate brokerage is facing a great difficulty. Internationally as real estate service industry opens up its doors abiding by open trade policy and moreover real estate brokerage becomes an open market, external environments are rapidly changing. Also domestically real estate agency's behavior pattern tends to be of higher quality, more diversified, individualized and more convenient as national income grows.
It is natural to keep interest in the performance of franchise real estate agencies as they are fast growing in real estate brokerage and scientific and organized research on their performance determinants are highly recommended.
Therefore, this paper intends to overcome the difficulties by developing a new model based on the research to define the performance determinants of franchise real estate agencies.
The details of this paper's purposes are stated as the following :
First, theories on real estate brokerage are reexamined and development process and managerial, legal and economical aspects are theoretically investigated.
Second, through the survey of the franchise systems in general distribution industry and real estate brokerage, performance determinants of franchise agencies are comprehensively investigated from the perspectives of the franchise agent's individual characteristics, the headquarters' characteristics, competition and relationships.
Third, performance determinants of franchise agencies and their relative importance are empirically analyzed.
Lastly, the paper seeks for an effective managerial solution for franchise real estate agencies with evidences from the literature survey of the performance of franchise real estate agencies and empirical data and thus aims to contribute to the development of national real estate brokerage and its franchise agencies.
This paper intends to achieve such purposes stated above and thus contribute to the development and advancement of real estate brokerage and ultimately to suggest the appropriate direction of national franchise real estate agencies and provide advices leading to more effective management and administration. This kind of research is not only academically necessitated, but practically significant from the standpoint of real estate brokerage.
Data collected in this research has undergone statistical analyses to verify their genuineness and objectivity and SPSS/PC has been used in statistical process. Statistical analysis used frequency distribution, mean difference distribution and x2 verification. Additionally multiple regression analysis has been performed. Through these processes, hypotheses regarding dependent variables as average monthly revenue, average monthly clients, average monthly contracts and etc. are examined and a phasic multiple regression analysis is interpreted.
This research paper consists of six chapters, main subjects of which are as following :
Chapter 1. The introduction states the research's backgrounds, purposes, its range and methods and the outline.
Chapter 2. The survey of existing researches on general characteristics of real estate brokerage and franchise systems has been studied and real estate brokerage, franchise agencies, their present conditions and their contracts are organized.
Chapter 3. Existing theories on the performance determinants of franchise real estate agencies are categorized into research on general distribution industry and that on real estate brokerage. Based on the investigation of these studies, the thesis of this research has been hypothesized and the performance determinants have been defined. Finally the research model is provided.
Chapter 4. The structure of investigation means for analytical methods, that of surveys as tools of investigation and measurements of variables and their analytical processes are described.
Chapter 5. General characteristics of investigation objects, the analysis of group average in terms of the performance of franchise real estate agencies, hypothesis and cross analysis on the performance determinants of franchise real estate agencies, and regression and analytical comprehension to analyze the factors affecting the performance of franchise real estate agencies have been applied.
Chapter 6. Lastly, the conclusion summarizes the results of the research, provides its significance and applications and reflects its limits.
This study is to examine variables influencing on the performance of franchise brokerage, and analyze how variables influence on sales performance. And an actual survey was performed to develop an integrated model that can use the variables for the efficient management of franchise brokerage.
A theoretical study based on reference data proceeded as following sequences : select variables that are most importantly regarded among various factors influencing on the performance of franchise brokerage, classify independent variables of selected variables into four characteristics such as franchises, headquarter, competition, and relationship, establish a model based on dependent variables, and analyze how factors of determination of the performance of franchise brokerage influence on monthly sales revenue.
The analysis results show that competition characteristics and headquarter characteristics were the most important variables, and followed by relationship characteristics and franchise characteristics according to corresponding variables.
This study's results can be summarized as follows : franchise"s financial abilities and locations, business support by the headquarter, inter-franchise competition and inter-brokers competition, and partnership mainly influence on the performance of franchise brokerage. Accordingly, to improve the management performance of franchise brokerage, first of all the franchise"s headquarter in good partnership with franchises should be selected, therefore the commission will be increased. And the sufficient fund will need to be invested where there is no competition and are good geographical conditions.
Therefore through the theoretical examination and empirical research, the following significance and applications of this research can be drawn.
First, this research has undergone the literature survey of mostly advanced countries and ultimately provides a model for the performance of franchise real estate agencies. It defines independent variables to be the characteristics of each franchise agency (its financial capability, the manager's experiences, its location), the characteristics of the headquarters representing all franchise agencies, the specifics of competition (internal competition between franchise agencies and external competition with other real estate agencies), the characteristics of relationships (cooperation, contracts). The dependent variables then are the performances.
Second, the variables affecting the fluctuation of the total revenue the most are the price of the transaction, the size, the duration of business and the total investment and those affecting the total number of clients are the duration of business, the agent's experiences and the total investment. The variables affecting the number of transactions are the membership system, the price of the transaction, the size, the duration of business and the total investment. These can guide to a more effective management of franchise real estate agencies.
Third, to improve the performance of franchise real estate agencies, the newly introduced measurement methods of managerial support such as 1) the system administration of the headquarters, 2) the decorations of the office, 3) financial support, 4) development of new products, 5)the quality of the products, 6) the duration of the supply of products, 7) information supply, 8) advertisement of the headquarters, 9) management of each franchise agency, 10) training of employees, must be more effectively fortified.
Fourth, the spacious franchise office would provide safety, pleasantness and convenience to agents and therefore would help improve the performance.
Fifth, the research shows the location of agencies to be crucial factors to improve the performance of franchise real estate agencies. Therefore it is important to carefully consider and classify the regional characteristics such as 1) geographical location of the office, 2) population around the office, 3) public transportation, and build appropriate strategies for the specific area.
Sixth, the increase of cooperation between the headquarters and the franchise agencies, which shows a significant relationship with the performance determinant, the total revenue, is necessary especially in the perspectives of 1) the franchise agency's contribution to the performance of the headquarters, 2) the franchise agency's successful performance aided by cooperation of the headquarters, 3) cooperation between the franchise agency and the headquarters regarding the profits, 4) the future transactional relationship between the headquarters and the franchise agency, 5) the headquarters' support for the franchise agency's activities, 6) the headquarters' competitiveness vs. the franchise agency's competitiveness, 7) the united efforts of the headquarters and the franchise agency.
Seventh, since the headquarters adopt the best strategies to increase number of franchise agencies, the competition among them are expected to be more severe. Therefore, differentiated strategies from the internal competitors, advertisement to improve the recognition of the brand name and development of its own trademark and service would help fighting the competition in franchise real estate brokerage.
Eighth, at presence when the distributional system of real estate brokerage is changing as franchise real estate brokerage emerges domestically, the competition among similar industries is heated. Therefore, franchise real estate brokerage should adopt differentiated strategies from the competitors in terms of the improvement of services, development of managerial strategies and supply of developed information.
Finally, the domestic franchise brokerage needs to adjust the security deposit set by the real estate law to the transaction cost of the actual estate to protect the client's property rights. More epochal institutions such as requirement of the documentation of contracts, reinforcement of responsibilities for physical damages of estates and One-Stop services would also improve the real estate services.