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Franchise Affiliation and Brokerage Firm Selection: A Perceptual Investigation

Authors: Theron R. Nelson and Susan Logan Nelson

Start Page: 87
End Page: 107
Volume: 3
Issue Number: 2
Year: 1988
Publication: Journal of Real Estate Research

Abstract: 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.

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