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Franchise Affiliation and Brokerage Firm Selection: A Perceptual Investigation



This study uses direct consumer perceptual information to investigate the broker selection process and the role that national franchise affiliation plays in this process. Multidimensional scaling is used to generate the housing consumers' perceptual space that represents their firm ranking process. The two major dimensions of this perceptual space are labeled the high touch and high tech dimensions based on a factor analysis of brokerage firm selection criteria. Of these, the latter is directly related to preference, although the former is generally rated as slightly more important by consumers. Even though the specific criterion "affiliation with a nationally known firm" is not rated as highly important, four of the five top ranked brokerage firms are franchise affiliates.

Suggested Citation

  • Theron R. Nelson & Susan Logan Nelson, 1988. "Franchise Affiliation and Brokerage Firm Selection: A Perceptual Investigation," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 87-107.
  • Handle: RePEc:jre:issued:v:3:n:2:1988:p:87-107

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    References listed on IDEAS

    1. James R. Frew & G. Donald Jud, 1986. "The Value of a Real Estate Franchise," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 374-383.
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    Cited by:

    1. Leon G. Shilton & Janet K. Tandy, 1993. "The Information Precision of CBD Office Vacancy Rates," Journal of Real Estate Research, American Real Estate Society, vol. 8(3), pages 421-444.
    2. Susan Logan Nelson & Theron R. Nelson, 1995. "RESERV: An Instrument for Measuring Real Estate Brokerage Service Quality," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 99-114.
    3. Vicky L. Seiler & James R. Webb & Thomas W. Whipple, 2000. "Assessment of Real Estate Brokerage Service Quality with a Practicing Professional's Instrument," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 105-117.
    4. Vicky L. Seiler & Michael J. Seiler & James R. Webb, 2006. "Impact of Homebuyer Characteristics on Service Quality in Real Estate Brokerage," International Real Estate Review, Asian Real Estate Society, vol. 9(1), pages 44-61.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services


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