Which of the Following Statements About Agency Commissions Is True

question 54

Multiple Choice

Which of the following statements about agency commissions is true?

• A) Some leading agencies now receive average commissions of 8 to 10 percent.
• B) Nearly all of the leading agencies still earn a 15 percent commission.
• C) Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion.
• D) Most agencies are unwilling to negotiate their commission rates.

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Definitions:

Supply Chain Intermediaries

Supply chain intermediaries are entities or individuals involved in the process of moving a product or service from the producer to the consumer.

Channel Member

An entity that participates in the distribution channel, like manufacturers, wholesalers, and retailers, helping goods reach their final consumers.

Retailer's Responsibility

The accountability held by retail businesses to ensure the quality, safety, and ethical sourcing of their products, along with providing good customer service.

Customers' Expectations

The beliefs or standards that consumers have about the performance, value, and quality of goods or services.