Alternative Profitability Measures and Marketing Channel Structure

Kaufmann, Patrick J.; Gordon, Richard; Owers, James E.

doi:10.1016/s0148-2963(99)00035-1

Cited by 35 publications

(7 citation statements)

References 14 publications

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“…They tend to be global models of store network study. The second category of channel management models has been initiated by Kaufmann, Gordon, and Owers (2000) and relies on the notions of accounting and economic value analysis. The third type of modeling the plurality of forms uses the study of ruptures in the franchise process (Frazer 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Channel Management Model Based on Accounting Data Kaufmann, Gordon, and Owers (2000) developed a model based on the hypothesis that certain operators seek for maximizing the long-term economic value of their firm, whereas others prefer maximizing the accounting value and thus the net revenue. The "maximizers" of accounting value, solely interested in the efficiency of capital, will be more likely to opt for company-owned management, whereas the "maximizers" of economic value, conscious of the impact of the agency costs, will tend to lean toward franchised units.…”

Section: Econometric Modelsmentioning

confidence: 99%

“…The third type of modeling the plurality of forms uses the study of ruptures in the franchise process (Frazer 2001). The recent nature of these two last categories of models does not allow in-depth development as only one reported investigation has hitherto occurred for each (i.e., Frazer 2001;Kaufmann, Gordon, and Owers 2000). Finally, the fourth category of model studies particular aspects of the management of store networks (e.g., innovation [cf.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

Dant

Perrigot

Cliquet

2008

J Small Business Management

117

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This paper explores the phenomenon of plural forms (i.e., the simultaneous coexistence of franchised and company-owned outlets, operationally, the proportion of company-owned units in franchise systems based on literature, in franchising across three countries from three continents, namely the United States, France, and Brazil in what is ostensibly the first cross-cultural comparison of its kind. Based on 2003 secondary data, we carry out a series of inferentially grounded analyses involving the plural forms phenomenon from an exploratory perspective. Though subsequently, comparative regression models are also evaluated using eight purported determinants of the use of the plural forms, the essential character of the paper remains essentially exploratory. The results show that the proportion of company-owned outlets is almost three times greater in France and Brazil as compared to the United States. We also found that in the U.S. sample, three of the eight predictors significantly predict the occurrence of plural forms (namely, average total required investment and cash liquidity requirement have a negative impact, and company age has a positive impact); the French model was not statistically significant, whereas in the Brazilian

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Section: Literature Reviewmentioning

confidence: 99%

Section: Econometric Modelsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

Dant

Perrigot

Cliquet

2008

J Small Business Management

117

View full text Add to dashboard Cite

show abstract

“…Oxenfeldt & Kelly, 1968), there must be agency or other benefits. Kaufmann, Gordon, and Owers (2000) considered the economic rationality of franchising decisions and found that financial performance considerations influenced franchising propensity.…”

Section: Rational Choice Theorymentioning

confidence: 99%

Does franchising pay? Evidence from the restaurant industry

Madanoglu¹,

Lee²,

Castrogiovanni³

2013

The Service Industries Journal

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Franchising has taken a prominent position in service industries for several decades, but little is known about how franchising affects financial performance. Thus, we addressed the question of whether chains that franchise to some extent outperform those that are wholly owned. Then, among chains that franchise, we also addressed the question of whether more franchising is better -that is, whether the proportion of a chain's units that are franchised is associated with superior financial performance. To answer these questions, our study first compares the risk-adjusted performance of franchising vs. non-franchising restaurant firms. Second, it investigates the relationship between franchising propensity and firm financial performance. We considered five different measures of firm financial performance: the Sharpe ratio, the Treynor ratio, the Jensen index, the Sortino ratio, and the upside potential ratio. On comparison of franchising and wholly owned firms, all five measures indicated that franchising firms outperformed their non-franchising counterparts. When we focussed on just the franchising firms, however, the results were less clear. Among firms that franchise, the franchising-performance relationship was positive and significant only with respect to the Jensen index. Thus, we provide very robust evidence that franchising pays -that is, that some franchising is good -but among firms that franchise, it is unclear whether more franchising is better.

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“…The marketing mix conventionally consists of four dimensions: product, price, place (distribution), and promotion. In spite of its roots in marketing, franchising decisions are primarily addressed in an economic/financial framework concerned with long-term profits and wealth (Kaufmann et al, 2000). However, there could be short-term changes in the marketplace that could also influence a company's marketing decisions.…”

Section: Applications For Tourism and Hospitality Managementmentioning

confidence: 99%

Research Note: The Marketing—Finance Interface — A New Direction for Tourism and Hospitality Management

et al. 2013

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For the last several decades, marketing research and finance research have developed with little interconnection. Traditionally, marketing research has emphasized the product market and finance research has focused on firm profitability and shareholder value. However, contemporary management strategies increasingly seek to enhance profitability and shareholder value via marketing strategies, which suggests the need for further exploration of the connections between marketing efforts and financial performance. Despite this increased attention, little research in the academic fields of tourism and hospitality has focused on bridging marketing and finance. Thus, the main purpose of this study is to introduce the concept of the marketing–finance interface and to explain possible applications of the concept in tourism and hospitality management.

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Alternative Profitability Measures and Marketing Channel Structure

Cited by 35 publications

References 14 publications

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

A Cross-Cultural Comparison of the Plural Forms in Franchise Networks: United States, France, and Brazil

Does franchising pay? Evidence from the restaurant industry

Research Note: The Marketing—Finance Interface — A New Direction for Tourism and Hospitality Management

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