Pricing-based practices, conflicts and performance in franchising

Brinja Meiseberg and Rozenn Perrigot ()
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Brinja Meiseberg: Campana & Schott
Rozenn Perrigot: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: Pricing management is complex in hybrid organizations like franchising, as much of the raison d'être of franchising is built upon maintaining chain uniformity. However, franchisees and franchisors may have very different views on what the optimal prices are at a given unit. The aim of our research is thus to assess how resale pricing decisions are made and implemented in franchised chains and what the business consequences are. Our research question is then "Which pricing-based practices reduce conflicts between franchisors and franchisees and so enhance performance?" Based on a questionnaire-based survey of 406 franchisees in the largest European franchise market, France, the results of our analyses show that resale pricing in franchised chains is of crucial importance not only vis-à-vis customers, but also vis-à-vis franchisees, particularly concerning their satisfaction, store performance, and intention to acquire additional stores. On the franchisor part, pricing is essential in terms of brand performance and brand name value. Regarding the franchisor-franchisee relationship, pricing is crucial in terms of the occurrence of conflicts.

Keywords: Cooperation; Franchising; Market performance; Pricing; Relational governance; Resale price management (search for similar items in EconPapers)
Date: 2020-12
Note: View the original document on HAL open archive server: https://univ-rennes.hal.science/hal-02638435
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Published in European Management Journal, 2020, 38 (6), pp.939-955. ⟨10.1016/j.emj.2020.04.004⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02638435

DOI: 10.1016/j.emj.2020.04.004

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