Advertising strategies in a franchise system

Sigué, Simon Pierre; Chintagunta, Pradeep K.

doi:10.1016/j.ejor.2008.09.027

Cited by 78 publications

(56 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Instead, we study the general scenario where, depending on the content of this type of advertising, retailer advertising can have no, negative, and positive carryover effects. Previous works do not simultaneously investigate these three possible effects (He et al, 2014;Jørgensen et al, 2000Jørgensen et al, , 2001Jørgensen et al, , 2003Sigué and Chintagunta, 2009). In this paper we show that these effects play a critical role in how channel members schedule their advertising decisions.…”

Section: Introductionmentioning

confidence: 77%

“…This assumption is somehow simplistic as, in many cases, manufacturers do not relinquish all advertising responsibilities to retailers (Sigué and Chintagunta, 2009). However, it allows us to focus on retailer advertising and its short-term and long-term effects on the design of cooperative advertising programs over time, which are the focal points of this study.…”

Section: The Modelmentioning

confidence: 99%

See 1 more Smart Citation

An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?

Martín‐Herrán

Sigué

2017

Journal of Business Research

View full text Add to dashboard Cite

show abstract

Section: Introductionmentioning

confidence: 77%

Section: The Modelmentioning

confidence: 99%

An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?

Martín‐Herrán

Sigué

2017

Journal of Business Research

View full text Add to dashboard Cite

show abstract

“…Franchisors terminate fewer contracts when they allow franchisees to decide on local advertising. Therefore, we interpret that franchisors can capitalize on franchisees' knowledge of local markets for local advertising (Sigué and Chintagunta 2009) without incurring significant moral hazard. However, the delegation of such decision rights does not have a significant impact on franchisees' terminations.…”

Section: Discussionmentioning

confidence: 99%

“…Moreover, economies of scale for national image advertising usually justify such centralization (Sigué and Chintagunta 2009). At the same time, franchisors can take advantage of franchisees' local knowledge by delegating some local advertising, thus promoting the brand locally and increasing sales at the franchisee store.…”

Section: Local Advertisingmentioning

confidence: 99%

Antecedents of early terminations in franchising: franchisor versus franchisee cancelations

López-Fernández

López‐Bayón

2017

Small Bus Econ

View full text Add to dashboard Cite

Franchisors capitalize on franchisee entrepreneurial capacity to grow. However, enabling franchisees to develop their ventures may damage system consistency. This dilemma makes conflict particularly prevalent in the field of franchising. Nevertheless, prior research has reported an incomplete picture of factors leading to serious disagreement and premature termination in franchise partnerships. We address this gap, first, by adding the entrepreneurial autonomy of franchisees as a relevant but underexplored source of conflict and, second, by providing a more fine-grained analysis of franchisors' versus franchisees' drivers of termination. Specifically, we focus on the controversial issues of pricing and local advertising policies and analyze how expanding franchisees' entrepreneurial autonomy in these decision areas is related to contract terminations depending on who ended the relationship (the franchisor or a franchisee). The study also highlights less controversial requirements and conditions (e.g., upfront investments, franchisor experience …) that may reduce early terminations. Our empirical objectives are met by using survey data from a sample of franchisor companies. The results show how the performance outcomes of entrepreneurial autonomy differ depending on the decision area in which it is exercised. Results also throw light on the consequences of various critical franchise policies that may be masked if both types of termination (franchisors vs. franchisees) are considered together.

show abstract

“…For example, the theory of resources and capabilities (Fladmoe-Lindquist 1996;Juste et al 2006;Alon et al 2012;Michael 2014), scarcity resource theory (Combs et al 2011a;2011b;Hua and Dalbor 2013), transaction costs theory and the theory of the firm (Rubin 1973 and1978;Michael and Moore 1995;Baena 2010), social exchange theory (Altinay et al 2014), structural inertia theory (Winter et al 2012), and game theory (Desai 1997;Sigué and Chintagunta 2009).…”

Section: The Entrepreneur As Franchisee From An Agency Theory Perspecmentioning

confidence: 99%

New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective

Sanfelix¹,

Puig²

2018

cuadernosgestion

View full text Add to dashboard Cite

Agency theory has been widely used in the franchising literature. This theory analyzes the contract relationships between the principal and agent and has been mostly applied to franchising in traditional sectors (e.g., restaurants, retailing, or travel agencies) where the processes and procedures can be easily standardized. Recently, there has been a spectacular development of high-intensity knowledge sectors, especially in the health sector (dentists, opticians, physiotherapists etc.), where many companies choose franchising to expand the network and improve the survival rates of franchisees, although this strategy goes against the traditional view of the agency theory. In this work, we propose to study this “new agency problem”, using the franchising business model as our research field. The know-how in high-knowledge-intensive sectors is difficult to codify and transfer, and it opens new possibilities for resource-based and intellectual capital perspectives to explain how knowledge assets are built into contracts in franchisor-franchisee relationships. Using resource-based theory and an intellectual capital perspective, we develop propositions on how to handle the knowledge transfer more efficiently. From this point of view, we propose an interorganizational dynamic contract to provide a more efficient knowledge transfer, thereby contributing to the success of the franchise networks as well as reducing the failure rates of franchisees’ outlets.

show abstract

Advertising strategies in a franchise system

Cited by 78 publications

References 27 publications

An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?

An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?

Antecedents of early terminations in franchising: franchisor versus franchisee cancelations

New challenges in franchisor-franchisee relationship. An analysis from agency theory perspective

Contact Info

Product

Resources

About