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| Author: | Polo-Redondo, Y. Bordonaba-Juste, V. Palacios, L. L. |
| Title: | Determinants of firm size in the franchise distribution system: empirical evidence from the Spanish market |
| Journal: | European Journal of Marketing
2011 : VOL 45:1/2, p. 170-171 |
| Index terms: | franchising price policy distribution Spain |
| Language: | eng |
| Abstract: | This article aims to study the determinants of firm size in a franchise distribution system. These strategic decisions are price policy, timing decision and network ownership. A panel data methodology is applied in a study of 384 catering and fashion franchise chains in Spain, a country where the franchise system is still developing. The results suggest that pricing policy and ownership structure are effective strategies in attracting new franchisees. Early followers may also have an impact in the process. Furthermore, it is found that mature and young firms use different strategies. The paper provides important knowledge for franchisors on the management of their franchise network. |
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