Pricing Strategies and Fee Structures in Franchising Organizations
Abstract
Franchising, as a popular form of small business, continues to grow at a phenomenal rate throughout the world. Two of the most important aspects of the franchisor/ franchisee relationship are the determination of pricing and a fee structure. These elements have a profound impact on the profitability and success of a franchise business. This study examined pricing strategies and fee structures across different types of franchising organizations. It was found that a variety of method s were used to determine pricing and fee structures.
References
Balmer, Thomas A. and James N. Gardner, "Franchising and the Anti-Trust Laws," in Franchising, South-Western Publishing Co., Cincinnati, Ohio, 1989, 139-156.
Chan, Peng S. and Robert T. Justis, "Franchise Management in East Asia,"Academy of Management Executive, May 1990, 75-85.
Darden, William R., Ronald D. Hampton and Earl W. Boatwright (1987), "Investigat ing Retail Employee Turnover: An Application of Survival Analysis," Journal of Retailing, 63 (Spring) 69-88.
Eichner, Alf red S. (1987), "Prices and Pricing," Journal of Economic Issues, 21 (December) 1555-1584.
Jacoby, Jacob and jerry C. Olson (1977), "Consumer Responses to Price: An Attitudi nal, Information Processing Perspective," in Moving Ahead with Attitude Research, eds. Yoram Wind and Marshall Greensberg, Chicago, IL: American Marketing Association, 73-86.
Justis, R.T. and R.j. Judd, Franchising, South-Western Publishing Company, Cincin nati, Ohio, 1989, 1-32.
Lichtenstein, Donald R., Peter H. Bloch, and William C. Black (1988), "Correlates of Price Acceptability," Journal of Consumer Research, 15 (September) 243-252.
Monroe, Kent B. (1973), "Buyers Subjective Perceptions of Price,"Journal of Marketing Research, 10 (February), 70-80.
(1984), "Theoretical and Methodological Developments in Pricing," in Advances in Consumer Research, Vol. 22, ed. Thomas C. Kinnear, Provo, UT: Association for Consumer Research, 636-637.
and R. Krishnan (1985), "The Effects of Price on Subjective Product Evaluations," in Perceived Quality: How Consumers View Stores and M erchandise, eds. Jacob Jacoby and Jerry C. Olson, Lexington, MA: D.C. Heath, 209-232.
Peterson, Robert A. and William R. Wilson (1985), "Perceived Risk and Price-Reliance Schema as Price-Perceived-Quality Mediators," in Perceived Quality: How Consumers View Stores and Merchandise, eds. Jacob Jacoby and jerry C.Olson, Lexington, MA: D.C. Heath, 247-268.
Seidman, A.and Seidman (1987), ''Pricing Your Product-What Should You Sell ItFor?", The CPA Journal , April, 76-78.
Zeidman, Philip F. and H. Bret Lowell, Franchising, Federal Publications Inc., Wash ington D.C., 1986, 114 and 158-164.
Zeithaml, Valerie A. (1974), "Issues in Conceptualizing and Measuring Consumer Response to Price," in Ad vances in Consumer Research, Vol. 11,ed. Thomas C. Kinnear, Provo, UT: Association for Consumer Research, 612-616.
(1987), "Defining and Relating Price, Perceived Quality, and Per- ceived
Value," Working Paper No. 87-101, Marketing Science Institute, Cambridge, MA 02138.