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"Can a Franchise Chain Coordinate?"

Steven C. Michael

 

First Author :

Steven C. Michael
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

smichael@uiuc.edu

http://www.business.uiuc.edu/facultyprofile/faculty_profile.aspx?ID=130

 
 
Abstract :
 
In today’s business landscape, the familiar traditional corporation has been augmented by new species such as joint ventures, strategic alliances, and franchise chains. The properties of these new species, termed hybrid forms, are distinctly different from the traditional corporation. In this paper we examine whether one hybrid form, the franchise chain, can coordinate elements of the marketing mix (price, quality, and advertising) in the pattern suggested by theory and achieved by the traditional corporation. Results suggest they cannot. Therefore, franchise chains appear to be unable to coordinate the elements of the marketing mix. Implications for the theory and practice are discussed.
 
 
Manuscript Received : 2000
Manuscript Published : 2000
 
 
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