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The Influence Of Franchisor’s Brand Image On Franchisee Trust And Its Impact On Franchisee Intention To Remain In Franchise System
[Full Text]
AUTHOR(S)
Erlinda, Yuyus Suryana, Faisal Afiff, Arief Helmi
KEYWORDS
Franchisee, Franchisee Intention to Remain in Franchise System, Franchisor’s Brand Image, Franchisee Trust
ABSTRACT
Franchisee is the party that play important role in the franchising, because most of franchise outlets managed and operated by franchisees. Nevertheless in the process of business operating there would be the conflict of interests between franchisor as the owner of brand with the franchisee as the buyer of franchisor’s brand to operating retail outlet.and bound with futures contract. Therefore franchisee trust is needed in order to maintain franchisee intention to remain in franchise system. One of the most important elements in franchising is franchisor’s brand image because basically franchise is selling the brand. Therefore this study aims to examine franchisee intention to remain in franchise system through franchisee trust that influenced by franchisor’s brand image. This study is conducted in Aceh province, Indonesia. Using causality-explanatory approach, with primary data in the form of perception, opinions and attitude of 134 franchisees as individual research object. The method of data collection is survey using questionnaire. Regarding time dimension is one shot study. Partial Least Square is used to analyze the data. The result shows that franchisor’s brand image have a positive significant influence greater through franchisee trust than a direct influence of franchisor’s brand image to franchisee intention to remain in franchise system.
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