Using discriminant analysis to classify satisfaction data to facilitate planning in a franchise context

Abstract

Using service-dominant logic as a framework, a process for classification and analysis of satisfaction data is developed with the objective of enabling a franchisor (management) to clearly differentiate between service preferences of franchisees (customers) with the same level of tenure with the organization, yet at substantially different revenue levels. The marketer can subsequently design service offerings that effectively meet the needs of the segment. Using discriminant analysis with satisfaction data, collected with an online survey of US franchisees of a multi-national firm, offers an opportunity to isolate the service preferences that most differentiate performance segments. Franchise marketers can more effectively design programs to meet franchisee needs based on tenure/revenue segments, and create an environment which encourages growth based on the experiences and preferences of higher performers. The contribution is the development of a process for effectively designing service offerings using discriminant analysis with satisfaction data.

Keywords:

• satisfaction
• discriminant analysis
• franchise marketing
• service-dominant logic
• value co-creation
• service design