Service profit chain initiatives in an entrepreneurial franchise system

Despite recognition of the merits and advantages of service profit chain initiatives of retention, related sales and referrals, little research as empirically addressed the perceptions of franchisees regarding these initiatives. This paper evaluates the implementation of the service profit chain as an entrepreneurial marketing initiative within a defined franchise system. Methodology includes the empirical analysis of evaluating the effectiveness of service profit chain implementation; primarily based on initiatives of retention, related sales and referrals. Research methodology comprises the survey approach, using electronic media and Surveypro analysis. This is facilitated by descriptive and inferential statistical techniques using SPSS version 11.0 data analysis. Hypothesis tests highlight the significance of a positive association between service profit chain initiatives and service quality. Findings are indicative of implementation opportunites, including measurement of loyalty within the system, developing customer feedback and complaint systems, and communicating the value of service profit chain enhancement within the franchise system. Concurrent research opportunities include the implementation of other entrepreneurial marketing initiatives, including relationship marketing and benchmarking for best practice.