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6 March, 19:28

Which of the following is a disadvantage of franchising for a franchisee? The Dunning-Kruger effect The endowment effect The false-consensus effect The negative halo effect

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  1. 6 March, 19:46
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    Option D

    The negative halo effect is a disadvantage of franchising for a franchisee

    Explanation:

    The halo effect is a kind of cognitive racism in which our overall hypothesis of a person impacts how we think and speculate about his or her personality. Thoughts of a particular characteristic can transfer over to how personas look at other features of that personality.

    If a franchisee does not exist up to the excellence criteria of the franchisor this can have a contrary reputational impact not simply on the franchisee, but the wider credit of the franchisor as well. Thus, there is a peril in empowering others not undeviatingly related to the business to practice the business name and logo.
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