Question 1

The reasons given in the text to explain why franchisees participate in franchising include all of the following except:

Accepted Answer

A)  Capital advantages 
B)  Obtain needed training and assistance from franchisors 
C)  Franchisor trademarked product has high recognition among consumers 
D)  Reduced uncertainty 
E)  Prospects for making adequate returns often higher than is the case for independent businesses 
A)  Capital advantages 
B)  Obtain needed training and assistance from franchisors 
C)  Franchisor trademarked product has high recognition among consumers 
D)  Reduced uncertainty 
E)  Prospects for making adequate returns often higher than is the case for independent businesses

Question 2

As it pertains to the scope and importance of franchising,which of the following statements is most accurate?

Accepted Answer

A)  The number of jobs provided by franchised businesses is slightly less than those provided by durable goods manufacturing. 
B)  Franchising and franchise channels continue to grow dramatically 
C)  While the number of franchises has grown, the number of kinds of franchises has remained constant 
D)  Franchising is an American business model that does not work well outside the U.S. 
E)  Franchising and franchising channels are not growing in other developed countries. 
A)  The number of jobs provided by franchised businesses is slightly less than those provided by durable goods manufacturing. 
B)  Franchising and franchise channels continue to grow dramatically 
C)  While the number of franchises has grown, the number of kinds of franchises has remained constant 
D)  Franchising is an American business model that does not work well outside the U.S. 
E)  Franchising and franchising channels are not growing in other developed countries.

Question 3

According to the text,the most important reason why franchisors adopt franchise channels is:

Accepted Answer

A)  Capital advantages 
B)  Obtain needed training from franchisees 
C)  Potential to reduce distribution costs 
D)  Reduce uncertainty 
E)  Possible high level of managerial motivation fostered by franchising 
A)  Capital advantages 
B)  Obtain needed training from franchisees 
C)  Potential to reduce distribution costs 
D)  Reduce uncertainty 
E)  Possible high level of managerial motivation fostered by franchising

Question 4

As it pertains to the scope and frequency of franchisee evaluations,which statement about the importance of channel members is true?

Accepted Answer

A)  Because the franchisees are the sole source of franchisor's revenues, and franchisees represent the contact points with customers, each franchisee is important. 
B)  All franchisees should be considered important to the franchisor regardless of their size. 
C)  Each franchisee "carries the banner" of the franchisor. 
D)  The performance of any franchisee can affect the brand equity of the franchise. 
E)  All of the above statements are true. 
A)  Because the franchisees are the sole source of franchisor's revenues, and franchisees represent the contact points with customers, each franchisee is important. 
B)  All franchisees should be considered important to the franchisor regardless of their size. 
C)  Each franchisee "carries the banner" of the franchisor. 
D)  The performance of any franchisee can affect the brand equity of the franchise. 
E)  All of the above statements are true.

Question 5

Which of the following is a true statement pertaining to single-unit franchises?

Accepted Answer

A)  This is the most common form of franchise channel structure. 
B)  All franchisees operating under single-unit franchises own and operate one unit. 
C)  These franchises operate in environments with little competition. 
D)  Single-unit franchises enjoy a favorable image among consumers. 
E)  Single-unit franchises are a very low-cost method of selling. 
A)  This is the most common form of franchise channel structure. 
B)  All franchisees operating under single-unit franchises own and operate one unit. 
C)  These franchises operate in environments with little competition. 
D)  Single-unit franchises enjoy a favorable image among consumers. 
E)  Single-unit franchises are a very low-cost method of selling.

Question 6

Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors?

Accepted Answer

A)  Degree of control and importance of channel members 
B)  Importance of channel members and nature of product 
C)  Nature of product and number of channel members 
D)  Number of channel members and degree of control. 
E)  Number of manufacturers in the industry. 
A)  Degree of control and importance of channel members 
B)  Importance of channel members and nature of product 
C)  Nature of product and number of channel members 
D)  Number of channel members and degree of control. 
E)  Number of manufacturers in the industry.

Question 7

Three major reasons that explain why franchisors distribute via franchise channels are:

Accepted Answer

A)  (1) reduce uncertainty; 2) obtain training; and 3) obtain assistance from franchisee. 
B)  (1) capital advantages, 2) potential to reduce distribution costs, and 3) possible high level of managerial motivation fostered by franchising. 
C)  (1) capital advantages, 2) obtain training; and 3) obtain assistance from franchisee 
D)  (1) capital advantages, 2) potential to reduce distribution costs, and 3) obtain assistance from franchisee. 
E)  (1) reduce uncertainty; 2) obtain training; and 3) possible high level of managerial motivation fostered by franchising. 
A)  (1) reduce uncertainty; 2) obtain training; and 3) obtain assistance from franchisee. 
B)  (1) capital advantages, 2) potential to reduce distribution costs, and 3) possible high level of managerial motivation fostered by franchising. 
C)  (1) capital advantages, 2) obtain training; and 3) obtain assistance from franchisee 
D)  (1) capital advantages, 2) potential to reduce distribution costs, and 3) obtain assistance from franchisee. 
E)  (1) reduce uncertainty; 2) obtain training; and 3) possible high level of managerial motivation fostered by franchising.

Question 8

The ___________ is a contract linking all franchisees to the franchisor.

Accepted Answer

A)  Uniform Franchise Offering Circular UFO
C)  
B)  Royalty agreement 
C)  Franchise agreement 
D)  Uniform Code of Justice UCJ) 
E)  None of the above 
A)  Uniform Franchise Offering Circular UFO
C)  
B)  Royalty agreement 
C)  Franchise agreement 
D)  Uniform Code of Justice UCJ) 
E)  None of the above

Question 9

One downside for franchisors participating in franchise channels is:

Accepted Answer

A)  Increased management flexibility 
B)  Low expectations among franchisees 
C)  Increased regulatory scrutiny. 
D)  Limited independence of the franchisee. 
E)  All of the above are about equal. 
A)  Increased management flexibility 
B)  Low expectations among franchisees 
C)  Increased regulatory scrutiny. 
D)  Limited independence of the franchisee. 
E)  All of the above are about equal.

The reasons given in the text to explain why franchisees participate in franchising include all of the following except:

As it pertains to the scope and importance of franchising,which of the following statements is most accurate?

According to the text,the most important reason why franchisors adopt franchise channels is:

As it pertains to the scope and frequency of franchisee evaluations,which statement about the importance of channel members is true?

Which of the following is a true statement pertaining to single-unit franchises?

Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors?

Three major reasons that explain why franchisors distribute via franchise channels are:

The ___________ is a contract linking all franchisees to the franchisor.

One downside for franchisors participating in franchise channels is:

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

The reasons given in the text to explain why franchisees participate in franchising include all of the following except:

As it pertains to the scope and importance of franchising,which of the following statements is most accurate?

According to the text,the most important reason why franchisors adopt franchise channels is:

As it pertains to the scope and frequency of franchisee evaluations,which statement about the importance of channel members is true?

Which of the following is a true statement pertaining to single-unit franchises?

Which two factors are especially relevant in the scope and frequency of franchisee evaluations by franchisors?

Three major reasons that explain why franchisors distribute via franchise channels are:

The ___________ is a contract linking all franchisees to the franchisor.

One downside for franchisors participating in franchise channels is:

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