Claire Gauzente

How France's Potential Franchisees Reach Their Decisions: A Comparison with Franchisers’ Perceptions

Journal of Small Business Management 2004 42(2), pp. 218-224 Hing (1997) takes up the subject of franchise publications, already raised by Elango and Fried (1997): The literature of franchising contained a plethora of repetitive and journalistic material, which contained conflicting and unsubstantiated claims (p. 157). Many publications point to the important role of the franchisee in the success of a franchise network (Jambulingam and Nevin 1999). Paradoxically, few empirical researchers have tried to understand their motivation, although several researchers stressed the importance of it. For instance, although Stanworth and Kaufmann (1996); Bradach and Kaufmann (1988); and Anderson, Clarence, and Dunkelberg (1992) emphasized the area of past experience that would indicate which individuals likely were to be interested in becoming franchisees, this topic has not been studied in detail. Peterson and Dant (1990) also suggest that it is important to observe franchisees motivations and decision-making processes prior to their actually joining a system. The present study attempts to reach a better understanding of how the potential franchisees come to their decisions and attempts to compare this process with franchisers perceptions. It initially focuses on the identification and on the decision-making process of French potential franchisees; subsequently, applicants answers are compared with those of the franchisers. Data were gathered at the annual franchise show, the Salon de la Franchise, held in Paris. Gap theory explains how differences from expectations between the service provider (the franchiser) and the customer (the potential franchisee) can affect the perceived quality of the franchise package. Managerial implications and future research needs are discussed. Methodology Sample Kaufmann and Stanworth (1995) note that the aim is to find a sample large enough to permit generalizations about the population of prospective franchisees. One possibility is to interview those attending a franchise exhibition. The research team for this study in fact did use this methodology, which had been tested previously by Bradach and Kaufmann (1988). Over a period of four days (March 19-22, 1999), data were gathered at the annual franchise show in Paris. Questionnaires were given to 315 potential franchisees and to 88 franchisers, selected on the basis of convenience. Questionnaire The different parts of the questionnaire are linked to Engel, Kollat, and Blackwells (1978) first four stages: (1) profile (identification and psychological variables); (2) information search (type of information and its influence on the likelihood of opening a franchise); (3) selection criteria (the order of precedence among the sector, the legal format, the brand name, the factors explaining the choice of the franchise format, and the factors explaining the choice of the specific franchise network); and (4) the intention to purchase (likelihood and deadline). Potential Franchisees: Who Are They? The past experience of the potential franchisee is described with the typical items: age, experience, and educational qualifications. Of those interviewed, 79 percent were male. The average age was 37, with none being under 20 or over 64. Two socioprofessional groups were in the majority: executives (35 percent) and company managers and shopkeepers (31 percent). It was observed that 13 percent were unemployed. Looking at the future entrepreneurs educational qualifications, it can be noted that more than 50 percent have reached A-level (allowing one to attend university), and 29 percent have a masters degree. The proportion of self-employed men or women was low. The rise in applicants educational level may be attributed to franchisers recruitment policy and network operation. Applicants are subjected to very specific requirements. Franchisers need to have the organizational resources to satisfy the prospective franchisees. …

Measuring franchisees’ satisfaction: theoretical considerations and empirical testing

Franchisees’ satisfaction is key to a franchise network’s continuance over the years. However, at the moment, no robust scale exists in order to assess franchisees’ satisfaction. The aim of the present study is to fill this gap by providing a reflection on the nature of franchisee satisfaction. In particular, we favor a managerial approach to satisfaction which should provide franchisers with an appropriate tool for assessing the satisfaction of their franchisees and provide a basis for guaranteeing long‐term survival of their network. The study was conducted in France over a representative sample of 401 franchises representing 32 franchise networks and covering all sectors. After a pre‐test phase, exploratory and confirmatory factor analyses were performed. The results led to a short, robust and predictive scale of franchisee job satisfaction.

“To legislate or not to legislate”: a comparative exploratory study of privacy/personalisation factors affecting French, UK and US Web sites

The trade off between customer privacy and Web site personalisation is currently moving to the forefront of academic and practical debate in marketing. The new Internet applications allow marketers to develop detailed customer databases where personal information is connected with buying patterns, providing a detailed behavioural profile. The collection and use of the data is regulated differently in the European Union and the USA. While Europe considers it important to implement formal legislation for the protection of customers’ privacy rights, the US authorities consider privacy policy to be determined through voluntary regulation by industry. Considering these different approaches, the present study explores and compares the privacy/personalisation dimensions of French, British and US Web sites.

Information search and paid results—proposition and test of a hierarchy-of-effect model

Search engines stand as the first entry point to internet resources for 70% of users. The results page is therefore an appealing place for advertising in the form of sponsored links also called paid results. Yet little academic knowledge has been developed to understand users’ perceptions and behaviors toward sponsored links. In particular it is of foremost importance to delineate factors that influence click intention and behavior. This paper proposes a hierarchy-of-effects model in order to understand surfers’ click on sponsored links. An empirical study is conducted over 349 participants confronted to three different Search Engine Result Pages (SERP) representing three search situations. Results indicate a significant relationship between attitude toward sponsored links and behavioral intention. In addition, past satisfaction is found to significantly predict click behavior. The contribution of this study for both researchers and practitioners is discussed.

SMS-marketing: a study of consumer saturation using an extended TAM approach

This papers aim is to explore consumers attitudes towards SMS marketing messages. An exploratory study has been conducted with 136 phone users. Specifically, the study tries to assess whether a saturation point is reached above which SMS marketing would be non-efficient and even counter-productive. The results indicate that the gender of respondents, the frequency of use and the length of use significantly influence the sender-specific saturation level, creating potential segmentation variables for mobile phone users.

The dynamics of market-oriented change: An empirical exploration

The paper examines the role of time in the relationship between market orientation and economic performance. Several authors have suggested potential delayed effects of market orientation due to its intangible nature; none has empirically assessed such a phenomenon. Based on a French sample of food companies, this study brings new insights for understanding the temporal nature of market-oriented change. The results show that absolute time spent on being market oriented is not as important as the manner with which market-oriented change has been implemented. Coordinating the adoption of market-oriented values and market-oriented behaviours appears to be pivotal for the success of change.

Attitude toward M-Advertising, Perceived Intrusiveness, Perceived Ad-Clutter and Behavioral Consequences: A Preliminary Study

Mobile-marketing raises a great from practitioners. It represents a new, concise, effective and direct way to contact consumers in order to make commercial offers or simply to enhance relational quality. Although a vast majority of consumers in modern societies possess and use mobile, concrete practices can be observed that can impede the development of m-advertisement. In particular, deletion of advertising sms constitutes significant pitfalls for advertisers. The present study examines consumers attitude toward m-advertising, perceived intrusiveness and ad-clutter and their behavioural consequences. The results indicate a clear impact of attitude and perceived ad-clutter on the rejection or acceptation of mobile ads.

Does psychological profile have something to do with satisfaction? A French retailing franchisees study

The main purpose of this study is to analyse the relationship between franchisees personality and franchisees satisfaction. A sample of 400 French franchisees concerning different sectors is analysed in detail. In the first part of the article, the methodology is presented. Then, theoretical framework concerning satisfaction and personality is developed. Different hypotheses are justified crossing the MSQ scale and the big four model. Conscientiousness seems to be the most predictive factor for satisfaction and results show that the other Big-Five traits are specific in several sectors.