Franchising Represents a Popular Version of a Contractual Vertical Marketing

question 17

Multiple Choice

Franchising represents a popular version of a contractual vertical marketing system where:

• A) the franchisee operates a retail outlet using the name and format of the franchisor,for which the franchisee pays a fee plus royalty.
• B) a franchisor provides assistance with locating the business,developing products,advertising and management.
• C) the franchisee can combine entrepreneurship with the advantages of a coordinated marketing channel.
• D) the franchisor has incentives through the royalties to continue to innovate and improve operations.
• E) All of these.

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Definitions:

Confirmation Bias

The tendency to process information by looking for, or interpreting, information that is consistent with one’s existing beliefs.

Sounding Board

An individual or group used to test ideas or concepts to gauge their validity or effectiveness before public release.

Middle Ages

A historical period in Europe stretching from the 5th to the late 15th century, characterized by feudalism, the spread of Christianity, and the emergence of the Renaissance in Italy.

European History

The study of past events and developments on the European continent, including its cultures, nations, and political establishments.