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Why Would a Licensor Offer a License to a Firm

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Essay

Why would a licensor offer a license to a firm while insisting that it not use the brand name of the licensor?


Definitions:

Performance Risk

The risk that a product or service will not perform to satisfactory standards, potentially leading to customer dissatisfaction or financial loss.

Reference Group

refers to a group that individuals compare themselves to for self-evaluation, which influences their beliefs, behaviors, and attitudes.

Determinant Attributes

Key features or characteristics of a product or service that influence the buyer's decision to purchase.

Financial Risk

The possibility of losing money on investments or business activities, encompassing a wide range of risks including market, credit, operational, and liquidity risks.

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