Owen Wright

Trust and commitment within franchise systems: an Australian and New Zealand perspective

Purpose – Although research in franchising is currently experiencing an advancement in the investigation of behavioural attributes, the motivators and perceptions of participants within this partnership, the key variables of trust and commitment, a key to successful business relations, requires further insight. The purpose of this paper is to extend the idiosyncratic dynamics of the franchisor‐franchisee relationship and the influence of such constructs from a distance perspective. Seminal work on relationship marketing (Morgan and Hunt) forms the foundation in the development of the franchising relational dynamics model posed within this paper.Design/methodology/approach – This paper adopts a qualitative, case‐based approach of four Australian retail franchises with holdings in New Zealand. In‐depth interviews were conducted with 20 franchisees to derive perceptions on trust and commitment currently experienced within the franchise relationship to inform the resultant findings.Findings – Key findings sug...

Power and control in the franchise network: an investigation of ex-franchisees and brand piracy

This research considers the issue of franchisees who exit the franchise system in order to continue operating independently. The literature regarding incentives for entering franchising is reviewed in an attempt to reveal why franchisees become dissatisfied and leave. The use of power by the franchisor and its relationship to brand piracy by franchisees is explored. Franchisors and their current and former franchisees are interviewed to uncover insights into this phenomenon. Explanations concerning the effectiveness of contractual remedies, dissatisfaction with the franchise, level of dependence and expectations in the relationship, and franchisor-franchisee goal incongruence are proposed.

A Multiple Case Analysis of Franchised Co-branding

Abstract Retail co-branding is an increasingly popular form of growth in a maturing Australian franchising sector. This paper presents an exploratory study of franchised retail co-branding arrangements utilising a case study approach. The existing literature, which has previously focused on product-specific co-branding, is extended. Traditional co-branding, agent theoretic and resource constraint arguments are analysed and found to be inadequate when applied to this new phenomenon. The research reveals that the motivations for introducing co-brands into existing franchises include alignment of a suitable brand with existing retail formats, risk aversion by the franchisor to the use of externally owned brands, reinvigorating the brands, and stimulating sales growth for specific outlets. In addition the research shows that co-brands can be successfully created internally franchisors are willing to sacrifice the culture and concept of the original franchise brand in order to achieve system growth.

Franchise system investment disclosure: signaling value to prospective franchisees

Purpose – The divergent interests of franchisor and franchisee give rise to significant ex-post conflict following the purchase of a franchise. Australian regulators have sought to assist transparency in franchising decision making by legislating for disclosure documents that expose key variables that theoretically determine choice on the part of prospective franchisees. The purpose of this paper is to explore the value proposition of the disclosure document and tests its normative effectiveness using a signal-theoretic perspective. Design/methodology/approach – Potential investors were asked to consider selected attributes through a choice-based survey, consistent with consumer theory, and focussing on an attribute-based determination of value. However, complex decision making in general and choice modeling can place severe cognitive burdens on respondents and induce satisficing rather than maximizing behavioral patterns. Best-worst scaling (BWS) provided a means for potential purchasers to respond coher...

Using best-worst scaling to reveal perceived relative importance of website attributes

Purpose The purpose of this paper is to review and extend previous work involving branding and website performance and aesthetics by applying a best-worst scaling (BWS) approach. Respondents were tasked with choosing the best and worst from 16-brand attribute statements representing website communications and aesthetics, a more effective understanding of consumer segmentation is revealed between the offline facility to the online retail experience. Design/methodology/approach A research design utilising BWS was deployed to provide an alternate perspective of consumer choice in an omni-channel retail environment. Findings Findings indicate a bifurcated audience with one-half reliant on communication and the other half on aesthetics is most important in the online environment when generating a positive relationship towards the retail brand. Research limitations/implications This study was conducted within a single retail format category (sportswear and apparel) so future studies need to estimate cross-category implications. The authors also suggest online experimental designs for consumers to compare traditional retail brand images. Finally as this study utilised Australian responses only the authors suggest cross-cultural comparisons to better understand the universal nature of website functionality and its link with traditional retail formats. Practical implications Retail executives will find the results from this study useful in two ways. To ensure consistency of brand image across channels managers must communicate efficiently and effectively. Brand managers must mediate between customer segments with some preferring clear concise website communications and others well established aesthetics. Originality/value This study adopts a BWS approach to better understand consumer choices in an online/offline branding environment.

Retail Food Group Co-Brand Strategy – A Case Study Analysis in the Australian Franchising Sector

This paper describes a case study of the Retail Food Group (RFG) and its co-branding arrangements. Co-branding is becoming increasingly popular in franchised retailing as a means of stimulating growth in the mature Australian sector. Current franchising theories and the Australian regulatory regime are briefly examined and found to be inadequate when positioned to explain the phenomenon of co-branding in this context. This case study provides an organisational perspective of co-branding extending existing literature away from product specific co-branding to a retail format. Data were collected from company documents and an interview with senior company executive. A case study protocol was then used to analyse the data. The study reveals that incentives for introducing other franchised retail brands into the Retail Food Group brand portfolio include search for a suitable retail brand; attracting new customers; and resilience from internal and external competition. This preliminary investigation provides a starting point for a broader research study into co-branded franchising arrangements.

The Routledge Companion to Marketing History: D. G. Brian Jones and Mark Tadajewski. New York, NY: Routledge (2016) pp. 464

The Routledge Companion to Marketing History is a trove of valuable knowledge, beautifully written, accurately researched, and a must read for any aspiring marketing academic or manager and those interested in the history of the discipline.Much of the book focuses onmacromarketing: the extent to which marketing principles are influenced and, in turn, influence political, economic, technological, ethical, and cultural changes. An interesting subtheme is that certain marketing principles transcend the passage of time in the histories of the great civilizations and modern nations. This book takes us on a journey through ancient Egyptian and Mesopotamian civilizations; China’s Qin Dynasty; the fall of Rome; and the establishment of Moscow as a political, mercantile, and economic hub of Russia during the rule of Tsar Ivan the Terrible. Further investigation reveals the East India Company’s agreement with the Mughal Empire, 18th century English trade leading into the Industrial Revolution, and the Boston Tea Party. Description of the Japanese Meiji period provides some Asian focus on marketing practices. The book highlights significant events affecting modern economies such as the passing of the Sherman Act in the United States (U.S.), the Canadian Confederation, the Scandinavian market, World War I, World War II (see Köhler and Logemann’s account of Markentechnik [branding techniques] within the “Nazi marketplace”), propaganda within Soviet retailing, and finally, the discovery of the “Americanized consumer.” These historical accounts name but a few of the many fascinating anecdotes found within this tome of marketing knowledge. Although the “genesis of trade is long lost in the mists of time” (p. 23), a central factor in the evolution of marketing exchange is bartering—the exchange of goods for goods—aprocess streamlinedwith the creation of money: this unit, at the centre of commerce, has long served as a critical medium of exchange. The challenge came in standardizing coinage with each city deploying different weights, measures, and coinage (further complicated because not all coins were accepted from city-to-city). If the economy is the wheel of trade, then money is the oil that renders the process of transactional exchange smooth and easy.1 However, money also served another purpose: the discovery of the use of coinage as a medium of exchange also influenced the art of moneymaking. Thus although the genesis of trade is ambiguous, the genesis of marketing is the individual’s path to wealth. If marketing helped create wealth, then wars, plagues, and famine contributed to its destruction. The Bubonic Plague (1347–1400 CE) and the Hundred Years War (1337–1450 CE) are considered to be the major causes of the demise of trade across Europe, hence the creation of an innovative instrument: credit. Promissory notes or bills of exchange were a more convenient means of payment. And thus, the first theme of the book is developed in light of the discussion in Chapter 2: “a cornerstone of ancient trade practice was establishing trust and maintaining stable trading relationships” (p. 38). Although tactics, processes, technology, and mediums have changed over the centuries, the fundamental purpose of marketing remains the same: “sellers and buyers creating stable market relationships” (p. 39). The second theme developed in this book is a discussion of consumption, the history of which is framed within consumer culture theory. Consumption not only involves acquisition, use, and disposal activities—that is, what consumers do—but it is also about what people think and feel about consumption. One might ask should consumers be “protected” from themselves when it comes to the consumption of alcohol, drugs, gambling, prostitution, and other perceived vices?

Entrepreneurial Orientation Rhetoric in Franchise Organizations: The Impact of National Culture:

This study examines the role of national culture on the entrepreneurial orientation (EO) rhetoric contained within franchisee recruitment promotional materials, where EO rhetoric is defined as the strategic use of words in organizational narratives to convey the risk taking, innovativeness, proactiveness, autonomy, and competitive aggressiveness of the firm. The sample comprised 378 franchise organizations, in five different countries (Australia, France, India, South Africa, and the UK). The results indicate that franchise systems operating in high uncertainty avoidance and feminine cultures use less entrepreneurially oriented rhetoric, suggesting that EO rhetoric in franchise organizations varies according to different national cultural contexts.

Analysing Peer Pedagogic Practices as a Positive Contribution to Academic Professional Development

Over the past two decades, the landscape of higher education teaching has been changing from the historical paradigm of a teacher-centric to a more student-centric experience. Calkins and Light (2008) reported a number of critical issues and debates that have been the impetus behind the evolving nature of higher education.