Business Format Franchising Often Is Used in the Marketing of Services

question 20

Multiple Choice

Business format franchising often is used in the marketing of services for all of the following reasons except:

• A) Provide scale economies.
• B) Harness entrepreneurial spirit.
• C) Help solve standardization problems.
• D) A close business relationship between franchisee and franchisor is unnecessary.
• E) Takes advantage of the drive and motivation associated with independently owned businesses.

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Definitions:

In-Group

A social group to which an individual feels they belong, often characterized by a sense of identity and loyalty.

Out-Group

A social group with which an individual does not identify and may feel competition or hostility towards.

Social Psychology

The scientific study of how a person’s thoughts, feelings, and behavior influence and are influenced by social groups; area of psychology in which psychologists focus on how human behavior is affected by the presence of other people.

Conformity

Conformity is the act of matching attitudes, beliefs, and behaviors to group norms, expectations, or pressures.