Question

QUESTION 3

1. What is a competitive advantage of franchising?

   	a.	separating channel functions
   	b.	developing multiple products
   	c.	forming long-term contracts
   	d.	focusing on a branded concept
   	e.	attracting new customers

3 points   

QUESTION 4

1. How does franchising most likely benefit a franchisor?

   	a.	provides financial capital for growth
   	b.	identifies the needs of niche markets
   	c.	provides knowledge to shareholders
   	d.	protects the franchisor against economic risk
   	e.	protects the brand name and logo

3 points   

QUESTION 5

1. Why do most franchisors offer the same contract to all franchisees?

   	a.	avoid appearing discriminatory
   	b.	ensure cooperation
   	c.	encourage longer contracts
   	d.	minimize start-up costs
   	e.	provide negotiation flexibility

3 points   

QUESTION 6

1. What type of channel conflict typically exists at a very low level in most marketing channels?

   	a.	functional
   	b.	manifest
   	c.	latent
   	d.	perceived
   	e.	affective

Answer 1

3. d. Focusing on a branded concept is a competitive advantage of franchising. Another competitive advantage is focusing on one product line and develop benefits from this specialization.

4. a. Provides financial capital for growth is the way through which franchising most likely benefits a franchisor.

5. a. Avoid appearing discriminatory is the reason why most franchisors offer the same contract to all franchisees.

6. b. Manifest is the type of which channel in which conflict typically exists at a very low level in most marketing channels.