Retail outlet location decision maker – franchisor or franchisee?

Retail outlet location decision maker – franchisor or franchisee? This study focuses on a unique retail outlet location decision‐making problem found in business format franchising industries. The problem is derived from the latent conflict in the relationship between franchisor and franchisees. An empirical study was carried out to compare benefits of two different outlet allocation decision modes: centralised planning mode (locations allocated by the franchisor) and decentralised planning mode (franchisees given autonomy to select the location of their own outlets). Research findings revealed that the decentralised location decision mode is more beneficial to the franchise system with a lower level of customer loyalty. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

Retail outlet location decision maker – franchisor or franchisee?

Marketing Intelligence & Planning, Volume 19 (3): 9 – Jun 1, 2001

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Publisher
Emerald Publishing
Copyright
Copyright © 2001 MCB UP Ltd. All rights reserved.
ISSN
0263-4503
DOI
10.1108/02634500110391717
Publisher site
See Article on Publisher Site

Abstract

This study focuses on a unique retail outlet location decision‐making problem found in business format franchising industries. The problem is derived from the latent conflict in the relationship between franchisor and franchisees. An empirical study was carried out to compare benefits of two different outlet allocation decision modes: centralised planning mode (locations allocated by the franchisor) and decentralised planning mode (franchisees given autonomy to select the location of their own outlets). Research findings revealed that the decentralised location decision mode is more beneficial to the franchise system with a lower level of customer loyalty.

Journal

Marketing Intelligence & PlanningEmerald Publishing

Published: Jun 1, 2001

Keywords: Franchising; Retailing; Location; Channel relationships; Hong Kong

References

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