Analysis of Franchise Influence and Pricing Strategies

Abstract

This study analyzes the influence of franchise systems and pricing strategies on business performance and consumer behavior, with a focus on how brand equity and pricing policies interact to create customer value and sustain competitiveness. The research adopts a qualitative literature review supported by secondary data from academic journals, industry reports, and statistical publications, employing comparative analysis to evaluate franchise growth trends, pricing models, and their effects on profitability and loyalty. The results indicate that franchises tend to achieve higher survival rates than independent businesses, mainly due to their strong branding, standardized operations, and managerial support. Pricing strategies are proven to be critical: national price consistency strengthens brand integrity, local price adjustments increase affordability, and promotional pricing boosts short-term sales but risks lowering perceived value if excessive. Several empirical studies indicate that pricing significantly influences satisfaction and loyalty, with R² values above 0.60. The synergy between franchise systems and pricing strategies enhances competitiveness and profitability, with a balance between consistency and local adaptation being crucial in emerging markets. Franchisors should integrate flexible yet standardized pricing policies, franchisees must adapt to local purchasing power, and policymakers should acknowledge franchise contributions to GDP, employment, and consumer market stability.