Question 1

Regarding the interfaces between channel management and other marketing mix variables that exist in franchise channels,which statement is most accurate?

Accepted Answer

A)  The implementation of marketing mix variables in franchise channels is less fluid and flexible than in conventional channels. 
B)  Strategies related to marketing mix elements can be easily modified in franchise channels. 
C)  The Internet has enhanced franchise marketing. 
D)  There are no differences between managing marketing mix elements in franchise channels versus conventional channels. 
E)  In franchise channel management, the nature of the product is the main determinant of marketing mix elements. 
A)  The implementation of marketing mix variables in franchise channels is less fluid and flexible than in conventional channels. 
B)  Strategies related to marketing mix elements can be easily modified in franchise channels. 
C)  The Internet has enhanced franchise marketing. 
D)  There are no differences between managing marketing mix elements in franchise channels versus conventional channels. 
E)  In franchise channel management, the nature of the product is the main determinant of marketing mix elements. A

Question 2

Which of the following statements best describes franchise channel structure?

Accepted Answer

A)  It is generally structured between domestic and international channels. 
B)  It has a negative image in marketing 
C)  It has had a detrimental effect on customer participation 
D)  It is structured between single-unit and multi-unit franchises. 
E)  It is the basis for mass merchandising. 
A)  It is generally structured between domestic and international channels. 
B)  It has a negative image in marketing 
C)  It has had a detrimental effect on customer participation 
D)  It is structured between single-unit and multi-unit franchises. 
E)  It is the basis for mass merchandising. D

Question 3

Business format franchises are prevalent in which of the following businesses?

Accepted Answer

A)  Automotive 
B)  Business services. 
C)  Lodging. 
D)  Real estate. 
E)  All of the above. 
A)  Automotive 
B)  Business services. 
C)  Lodging. 
D)  Real estate. 
E)  All of the above. E

Question 4

In product distribution franchises:

Accepted Answer

A)  Franchisors provide significant operational assistance to franchisees. 
B)  The franchisor licenses its trademarked products to franchisees. 
C)  The greatest benefit to franchisors is the marketing assistance they receive from franchisees. 
D)  Franchisors spend billions of dollars annually to keep franchisees trained. 
E)  Franchisees provide significant operational assistance to franchisors. 
A)  Franchisors provide significant operational assistance to franchisees. 
B)  The franchisor licenses its trademarked products to franchisees. 
C)  The greatest benefit to franchisors is the marketing assistance they receive from franchisees. 
D)  Franchisors spend billions of dollars annually to keep franchisees trained. 
E)  Franchisees provide significant operational assistance to franchisors.

Question 5

Product distribution franchises:

Accepted Answer

A)  Are a new form of Internet franchise. 
B)  Mean franchisees license its trademarked product or services) to franchisors. 
C)  Suggests the franchisor provides relatively little in the way of management assistance to the franchisees. 
D)  Exist only in industries that manufacture appliances. 
E)  Are rare in automobile and soft drink channels. 
A)  Are a new form of Internet franchise. 
B)  Mean franchisees license its trademarked product or services) to franchisors. 
C)  Suggests the franchisor provides relatively little in the way of management assistance to the franchisees. 
D)  Exist only in industries that manufacture appliances. 
E)  Are rare in automobile and soft drink channels.

Question 6

Which of the following statements is true regarding,business format franchises?

Accepted Answer

A)  The franchisor provides a system for the franchisee to operate the business. 
B)  Franchisee operational efficiency is more important than working relationships between franchisors and franchisees 
C)  The franchisor provides little beyond a license to use its trademarked products. 
D)  They are most common among automobile and soft drink channels. 
E)  The details of franchise management are vague enabling franchisees to adapt to changing environmental conditions. 
A)  The franchisor provides a system for the franchisee to operate the business. 
B)  Franchisee operational efficiency is more important than working relationships between franchisors and franchisees 
C)  The franchisor provides little beyond a license to use its trademarked products. 
D)  They are most common among automobile and soft drink channels. 
E)  The details of franchise management are vague enabling franchisees to adapt to changing environmental conditions.

Question 7

Which of the following statements is true about franchising?

Accepted Answer

A)  It is a channel used exclusively for distribution of consumer durable goods. 
B)  The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. 
C)  Generally, franchise marketing channels are more closely knit i.e., closer relationships) than conventional channels. 
D)  The challenges managing a franchise channel are fundamentally the same as those encountered in conventional channels. 
E)  All of the above statements are true. 
A)  It is a channel used exclusively for distribution of consumer durable goods. 
B)  The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts. 
C)  Generally, franchise marketing channels are more closely knit i.e., closer relationships) than conventional channels. 
D)  The challenges managing a franchise channel are fundamentally the same as those encountered in conventional channels. 
E)  All of the above statements are true.

Question 8

Regarding the issue of control of franchisees by franchisors,which of the following is most accurate?

Accepted Answer

A)  Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. 
B)  The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. 
C)  Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods. 
D)  Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. 
E)  The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model. 
A)  Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution. 
B)  The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry. 
C)  Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods. 
D)  Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model. 
E)  The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model.

Question 9

As it pertains to the motivation of franchisees,which statement is generally false?

Accepted Answer

A)  Communications between franchisors and franchisees is one-way, performance data that flows from the franchisee to the franchisor. 
B)  Communications between franchisors and franchisees is two-way, performance data that flows from the franchisee to the franchisor, and information about franchisee needs and problems that flows back to the franchisor 
C)  The franchisor needs to be aware of the limits of his/her response to franchisee needs imposed by the franchise agreement. 
D)  Franchisors have limited flexibility to respond to each franchisee issue and problem owing to the nature of the franchise agreement. 
E)  The franchisor's responses are constrained by the programmed business format and the franchise agreement. 
A)  Communications between franchisors and franchisees is one-way, performance data that flows from the franchisee to the franchisor. 
B)  Communications between franchisors and franchisees is two-way, performance data that flows from the franchisee to the franchisor, and information about franchisee needs and problems that flows back to the franchisor 
C)  The franchisor needs to be aware of the limits of his/her response to franchisee needs imposed by the franchise agreement. 
D)  Franchisors have limited flexibility to respond to each franchisee issue and problem owing to the nature of the franchise agreement. 
E)  The franchisor's responses are constrained by the programmed business format and the franchise agreement.

Question 10

With regard to the evaluation of franchisee performance and degree of control:

Accepted Answer

A)  The generally low level of control that a franchisor has over the franchisee enables the franchisor to request and receive a great deal of performance data. 
B)  The generally low level of control that a franchisor has over the franchisee suggests that the franchisor to can only request performance data infrequently. 
C)  Franchisors are able to request and receive various data except data that pertains to cleanliness of facilities and employee training procedures. 
D)  Franchisor access to franchisee performance data is similar to data in conventional channels by channel members. 
E)  The high degree of control by the franchisor helps to provide a guaranteed, detailed, and regular flow of performance data that benefits both parties. 
A)  The generally low level of control that a franchisor has over the franchisee enables the franchisor to request and receive a great deal of performance data. 
B)  The generally low level of control that a franchisor has over the franchisee suggests that the franchisor to can only request performance data infrequently. 
C)  Franchisors are able to request and receive various data except data that pertains to cleanliness of facilities and employee training procedures. 
D)  Franchisor access to franchisee performance data is similar to data in conventional channels by channel members. 
E)  The high degree of control by the franchisor helps to provide a guaranteed, detailed, and regular flow of performance data that benefits both parties.

Question 11

The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs.

Accepted Answer

A)  900 
B)  9,000 
C)  90,000 
D)  900,000 
E)  9,000,000 
A)  900 
B)  9,000 
C)  90,000 
D)  900,000 
E)  9,000,000

Question 12

The difference between single-unit and multi-unit franchises is:

Accepted Answer

A)  Only franchisees operating multi-unit franchisees can own more than a single franchise.. 
B)  In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. 
C)  Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises. 
D)  There is no difference, they are different labels for the same form of franchise channel. 
E)  None of the above. 
A)  Only franchisees operating multi-unit franchisees can own more than a single franchise.. 
B)  In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit. 
C)  Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises. 
D)  There is no difference, they are different labels for the same form of franchise channel. 
E)  None of the above.

Question 13

Why does the selection of channel members pose a peculiar,paradoxical challenge for the franchisor?

Accepted Answer

A)  Because franchisors want franchisees who are highly motivated but not entrepreneurial. 
B)  Because franchisors want franchisees who are self-motivated, entrepreneurial but willing to accept direction from the franchisor. 
C)  Because franchisors want franchisees who are extremely independent and creative. 
D)  Because franchisors want franchisees who are able and willing to modify the franchise model to adapt to local consumer demand. 
E)  Because franchisors want franchisees who can conduct business without direction. 
A)  Because franchisors want franchisees who are highly motivated but not entrepreneurial. 
B)  Because franchisors want franchisees who are self-motivated, entrepreneurial but willing to accept direction from the franchisor. 
C)  Because franchisors want franchisees who are extremely independent and creative. 
D)  Because franchisors want franchisees who are able and willing to modify the franchise model to adapt to local consumer demand. 
E)  Because franchisors want franchisees who can conduct business without direction.

Question 14

How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels?

Accepted Answer

A)  Unlike conventional channel management, the motivation of franchise channel members is unnecessary. 
B)  The motivation of franchise channel members addresses support and assistance for known problems. 
C)  The motivation of franchise channel members requires leadership on a continuing basis. 
D)  The motivation of franchise channel members is the same as in conventional channels. 
E)  The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels. 
A)  Unlike conventional channel management, the motivation of franchise channel members is unnecessary. 
B)  The motivation of franchise channel members addresses support and assistance for known problems. 
C)  The motivation of franchise channel members requires leadership on a continuing basis. 
D)  The motivation of franchise channel members is the same as in conventional channels. 
E)  The motivation of franchise channel members has less to do with cooperation and partnerships than in conventional channels.

Question 15

A regular and continuous fee paid to the franchisor by the franchisee is called:

Accepted Answer

A)  Payroll tax. 
B)  Sales tax. 
C)  Franchise fee. 
D)  Usage tax. 
E)  Royalty fee 
A)  Payroll tax. 
B)  Sales tax. 
C)  Franchise fee. 
D)  Usage tax. 
E)  Royalty fee

Question 16

In business format franchises the franchisor provides the complete system for operating the business. This includes all of the following except:

Accepted Answer

A)  Marketing strategy. 
B)  Financial control procedures 
C)  Training. 
D)  System to network with competing franchises. 
E)  Quality control standards. 
A)  Marketing strategy. 
B)  Financial control procedures 
C)  Training. 
D)  System to network with competing franchises. 
E)  Quality control standards.

Question 17

The downsides for franchisees participating in franchise channels include all of the following except:

Accepted Answer

A)  The obligation to provide a percentage of their gross revenues to the franchisor as royalty payments. 
B)  If a one member of the franchise system generates negative publicity, all franchisees in the system may suffer. 
C)  Negative halo effect. 
D)  Limited independence of the franchisee. 
E)  Increased regulatory scrutiny. 
A)  The obligation to provide a percentage of their gross revenues to the franchisor as royalty payments. 
B)  If a one member of the franchise system generates negative publicity, all franchisees in the system may suffer. 
C)  Negative halo effect. 
D)  Limited independence of the franchisee. 
E)  Increased regulatory scrutiny.

Question 18

Franchise fees:

Accepted Answer

A)  Compensate the franchisee for the use of its trademark. 
B)  Pay for all physical assets e.g., equipment and building), needed to operate the franchise. 
C)  Is usually a one-time flat fee paid by franchisees to franchisors. 
D)  Is based on a percentage of the franchisee's gross sales. 
E)  Is a government tax to register the franchise. 
A)  Compensate the franchisee for the use of its trademark. 
B)  Pay for all physical assets e.g., equipment and building), needed to operate the franchise. 
C)  Is usually a one-time flat fee paid by franchisees to franchisors. 
D)  Is based on a percentage of the franchisee's gross sales. 
E)  Is a government tax to register the franchise.

Question 19

Which of the following statement most accurately describes a franchise channel?

Accepted Answer

A)  It is just a source of information for consumers. 
B)  Franchise channels only offer services to consumers. 
C)  It is a form of wholesale management. 
D)  It is a type of marketing channel. 
E)  It is a legal term for retailing. 
A)  It is just a source of information for consumers. 
B)  Franchise channels only offer services to consumers. 
C)  It is a form of wholesale management. 
D)  It is a type of marketing channel. 
E)  It is a legal term for retailing.

Question 20

Which of the following statements are relevant to the definition of,"franchise"?

Accepted Answer

A)  A franchise is a legal agreement. 
B)  In a franchise, two parties are involved, the franchisee and franchisor. 
C)  In a franchise, parties are independent. 
D)  In a franchise, one party grants a license to another party to sell a trademarked product or service. 
E)  All of the above statements are accurate. 
A)  A franchise is a legal agreement. 
B)  In a franchise, two parties are involved, the franchisee and franchisor. 
C)  In a franchise, parties are independent. 
D)  In a franchise, one party grants a license to another party to sell a trademarked product or service. 
E)  All of the above statements are accurate.

Regarding the interfaces between channel management and other marketing mix variables that exist in franchise channels,which statement is most accurate?

Which of the following statements best describes franchise channel structure?

Business format franchises are prevalent in which of the following businesses?

In product distribution franchises:

Product distribution franchises:

Which of the following statements is true regarding,business format franchises?

Which of the following statements is true about franchising?

Regarding the issue of control of franchisees by franchisors,which of the following is most accurate?

As it pertains to the motivation of franchisees,which statement is generally false?

With regard to the evaluation of franchisee performance and degree of control:

The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs.

The difference between single-unit and multi-unit franchises is:

Why does the selection of channel members pose a peculiar,paradoxical challenge for the franchisor?

How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels?

A regular and continuous fee paid to the franchisor by the franchisee is called:

In business format franchises the franchisor provides the complete system for operating the business. This includes all of the following except:

The downsides for franchisees participating in franchise channels include all of the following except:

Franchise fees:

Which of the following statement most accurately describes a franchise channel?

Which of the following statements are relevant to the definition of,"franchise"?

Marketing Channel Concepts

The Channel Participants

The Environment of Marketing Channels

Behavioral Processes in Marketing Channels

Strategy in Marketing Channels

Designing Marketing Channels

Selecting the Channel Members

Target Markets and Channel Design Strategy

Motivating the Channel Members

Product Issues in Channel Management

Pricing Issues in Channel Management

Promotion through the Marketing Channel

Logistics and Channel Management

Evaluating Channel Member Performance

Electronic Marketing Channels

Marketing Channels for Services

International Channel Perspectives

Filters

Exam 16: Franchise Marketing Channels

Regarding the interfaces between channel management and other marketing mix variables that exist in franchise channels,which statement is most accurate?

Which of the following statements best describes franchise channel structure?

Business format franchises are prevalent in which of the following businesses?

In product distribution franchises:

Product distribution franchises:

Which of the following statements is true regarding,business format franchises?

Which of the following statements is true about franchising?

Regarding the issue of control of franchisees by franchisors,which of the following is most accurate?

As it pertains to the motivation of franchisees,which statement is generally false?

With regard to the evaluation of franchisee performance and degree of control:

The franchise distribution system is composed of approximately _________ franchise business establishments that provide more than 11 million jobs.

The difference between single-unit and multi-unit franchises is:

Why does the selection of channel members pose a peculiar,paradoxical challenge for the franchisor?

How does the motivation of franchise channel members differ from the motivation of channel members in conventional channels?

A regular and continuous fee paid to the franchisor by the franchisee is called:

In business format franchises the franchisor provides the complete system for operating the business. This includes all of the following except:

The downsides for franchisees participating in franchise channels include all of the following except:

Franchise fees:

Which of the following statement most accurately describes a franchise channel?

Which of the following statements are relevant to the definition of,"franchise"?

Marketing Channel Concepts

The Channel Participants

The Environment of Marketing Channels

Behavioral Processes in Marketing Channels

Strategy in Marketing Channels

Designing Marketing Channels

Selecting the Channel Members

Target Markets and Channel Design Strategy

Motivating the Channel Members

Product Issues in Channel Management

Pricing Issues in Channel Management

Promotion through the Marketing Channel

Logistics and Channel Management

Evaluating Channel Member Performance

Electronic Marketing Channels

Marketing Channels for Services

International Channel Perspectives

Filters