Ford uses a(n)________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

Question

BlackTom AI · Accepted Answer

Contextualize the question by identifying the franchising arrangement described. 
Option 1: 'manufacturer-sponsored retail franchise system' – This fits Ford’s model, where the manufacturer (Ford) licenses dealers in North America to sell Ford vehicles and imposes sales and service conditions as part of a controlled dealer network. The emphasis is on the manufacturer's active sponsorship and control over the retail outlets. 
Option 2: 'service-sponsored retail franchise system' – This would imply that the sponsorship comes from the service side, such as a service organization backing retailers, which is not typical for automobile manufacturers who sponsor the retail sales channel rather than only the service aspect. 
Option 3: 'manufacturer-sponsored wholesale franchise system' – A wholesale franchise would be more about distributing goods to retailers or other intermediaries for resale, rather than direct consumer sales; car manufacturers do not typically use a wholesale franchise model for retail sales to end customers. 
Option 4: 'service-sponsored producer franchise system' – This combination suggests the producer is sponsored by a service entity, and the terminology is atypical for automotive franchising; it does not capture the standard dealer-licensing arrangement used by Ford. 
Option 5: 'administered vertical marketing system' – An administered VMS involves one channel member exerting authority over others without formal franchising; while control is present, the description in the prompt points to a formal franchised dealer network rather than an administered system. 
In summary, the scenario aligns with a manufacturer-sponsored retail franchise framework, where Ford licenses and conditions its North American dealers for selling vehicles and delivering service, distinguishing it from alternative arrangements that emphasize service sponsorship, wholesale-oriented structures, or non-franchise governance models.

MKT250002.2025FA POM Chs 15 - 17- Requires Respondus LockDown Browser

Ford uses a(n)________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

View Explanation

Log in for full answers

Similar Questions

A(n)________ exists when a franchisor licenses retailers to sell its products subject to various sales and service conditions.

In which revenue model does an existing business allow another party to trade under the name of that business?

Question at position 5 Becoming a licensee or franchisee of a foreign brand does not internationalize the licensee or franchisee firm.正确错误

Franchising is a type of __________.

Which of the following is a strategic advantage for a hotel operating under a franchise model?

Which of the following best represents a potential drawback for a hotel operating under a franchise agreement?

Jessa has paid an upfront lump sum plus a royalty on all sales to a specific fast-food company in return for the right to operate a business using its name and format in a specific location. This agreement makes Jessa a

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

MKT*2500*02.2025FA POM Chs 15 - 17- Requires Respondus LockDown Browser

Ford uses a(n)________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

View Explanation

Log in for full answers

Similar Questions

A(n)________ exists when a franchisor licenses retailers to sell its products subject to various sales and service conditions.

In which revenue model does an existing business allow another party to trade under the name of that business?

Question at position 5 Becoming a licensee or franchisee of a foreign brand does not internationalize the licensee or franchisee firm.正确错误

Franchising is a type of __________.

Which of the following is a strategic advantage for a hotel operating under a franchise model?

Which of the following best represents a potential drawback for a hotel operating under a franchise agreement?

Jessa has paid an upfront lump sum plus a royalty on all sales to a specific fast-food company in return for the right to operate a business using its name and format in a specific location. This agreement makes Jessa a

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

MKT250002.2025FA POM Chs 15 - 17- Requires Respondus LockDown Browser