search query: @indexterm Franchising / total: 231
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| Author: | Desai, P. Srinivasan, K. |
| Title: | Aggregate versus product-specific pricing: implications for franchise and traditional channels |
| Journal: | Journal of Retailing
1996 : FALL, VOL. 72:4, p. 357-382 |
| Index terms: | RETAILING FRANCHISING PRICING |
| Language: | eng |
| Abstract: | Franchisors often charge a common franchise fee and royalty on all the products sold or serviced by their franchisees. Since the potential demand for each product may be different, a product-specific pricing scheme may be optimal. Hence, the common strategy of aggregate pricing appears to be a puzzling practice. However, the authors show that under certain conditions the aggregate pricing scheme improves channel coordination of retail prices and local services, and improves the total channel profit and the franchisor's profit. |
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