Franchise affiliations by real estate brokers have increased greatly in the last decade, yet little research has been directed toward the impact of presumed franchise advantages on broker competition or comparative performance. This paper, using data from a 1979 Survey of North Carolina Homebuyers, studies the effectiveness of franchise mass media advertising in creating a professional image, enhancing consumer recognition, attracting distant clients, and obtaining listings. Results indicate that franchise affiliation achieves all of the above, and that clients of fran-chised brokers are satisfied with broker services rendered. Data from a Multiple Listing Service was used to examine performance differences between national and regional affiliations. It was determined that national franchises which utilize mass media promotion tend to assist purchasers of lower priced homes, and that other franchises tend to sell significantly higher priced homes.
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- Franchise Affiliation and Promotional Techniques: Competition and Comparative Performance Among North Carolina Real Estate Brokers
James R. Frew