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The effect of a partnership franchising model on consumer satisfaction for a large German cooperative retail chain before and during the COVID-19 pandemic

Die Auswirkung eines Partnerschafts-Franchising-Modells auf die Verbraucherzufriedenheit einer großen deutschen genossenschaftlichen Einzelhandelskette vor und während der COVID-19-Pandemie

  • Severin Bachmann , Richard Reichel and Matthias Wrede

Zusammenfassung

Der vorliegende Artikel analysiert für einen der größten deutschen Einzelhändler anhand von Webrezensionen den Effekt eines Partnerschafts-Franchising-Modells auf die Verbraucherzufriedenheit und die Unterschiede dieser Effekte vor und während der COVID-19-Pandemie. Das Besondere am Franchise-Modell dieser Kette ist, dass sich der Franchisegeber finanziell an einem Partnerschaftsmodell beteiligt und die Franchisenehmer wiederrum erhebliche unternehmerische Freiheiten genießen. Das Ergebnis dieser Studie zeigt, dass Verbraucher mit Franchisenehmern wesentlich zufriedener sind als mit zentral geführten Geschäften. Die Zufriedenheit der Verbraucher ging zurück und der Vorsprung der Franchisenehmer nahm während der Pandemie ab.

Abstract

Using web reviews, we analyze the effect of a partnership franchising model on consumer satisfaction and the differences in these effects before and during the COVID-19 pandemic for one of the largest German retailers. The franchise model of this chain is special in that the franchisor participates financially in a partnership model, and on the other hand, the franchisees enjoy significant entrepreneurial freedom. This study finds that consumers are substantially more satisfied with franchisees than centrally managed stores. Consumer satisfaction declined and the lead of franchisees diminished during the pandemic.

Résumé

À l'aide de revues de web, nous analysons l'effet d'un modèle de franchise en partenariat sur la satisfaction des consommateurs et les différences dans ces effets avant et pendant la pandémie de COVID-19 pour l'un des plus grands détaillants allemands. Le modèle de franchise de cette chaîne est particulier en ce sens que le franchiseur participe financièrement à un modèle de partenariat et que, d'autre part, les franchisés jouissent d'une grande liberté d'entreprise. Cette étude montre que les consommateurs sont nettement plus satisfaits des franchisés que des magasins gérés de manière centralisée. La satisfaction des consommateurs a baissé et l'avance des franchisés a diminué pendant la pandémie.

JEL Classification: L22; L81; P13

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Appendix
Tab. A-1

Regressions on socio-demographics

average rating average rating average rating average rating
partner 0.104*** 0.104*** 0.104*** 0.104***
(0.0168) (0.0169) (0.0168) (0.0169)
distance city 0.00323 0.00352 0.00351 0.00320
centroid (0.00238) (0.00264) (0.00269) (0.00242)
purchase power -0.000000345
per hh (0.00000169)
share of 1/2 unit -0.000281
houses (0.00152)
unemployment -0.000184
rate (0.00276)
Constant 3.952*** 3.965*** 3.951*** 3.953***
(0.0289) (0.0750) (0.0292) (0.0357)

city fixed effects yes yes yes yes

N 625 625 625 625
F 7.852 7.422 7.359 7.352
R2 0.151 0.151 0.151 0.151
R2a 0.130 0.128 0.128 0.128
  1. Heteroscedasticity robust standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01

Tab. A-2

Regressions on socio-demographics

average rating average rating average rating average rating
partner 0.104*** 0.105*** 0.102*** 0.104***
(0.0168) (0.0168) (0.0171) (0.0169)
distance city 0.00323 0.00635** 0.00141 0.00286
centroid (0.00238) (0.00255) (0.00253) (0.00244)
share 65 plus -0.00538*
(0.00279)
population density -0.00000401
(0.00000342)
share foreigner -0.000641
(0.00154)
Constant 3.952*** 4.023*** 3.985*** 3.965***
(0.0289) (0.0481) (0.0377) (0.0417)

city fixed effects yes yes yes yes

N 625 625 625 625
F 7.852 7.122 7.385 7.385
R2 0.151 0.161 0.153 0.151
R2a 0.130 0.139 0.130 0.128
  1. Heteroscedasticity robust standard errors in parentheses, * p < 0.1, ** p < 0.05, *** p < 0.01

Published Online: 2023-07-01
Published in Print: 2023-06-27

© 2023 Walter de Gruyter GmbH, Berlin/Boston

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