McMann and Young advertisers has been hired by Broadway Bicycles to assist with promotions for a chain of bicycle stores in Vermont.The agency has agreed that a certain level of awareness and interest in Broadway Bicycles will be generated in order to gain the sales targets the company desires, and they have agreed to be paid accordingly.This is an example of a system of compensation.

Question

Quizplus · Accepted Answer

The scenario describes a pay-for-results system of compensation, where the agency will be paid based on the level of awareness and interest they generate, rather than a set markup charge or cost-plus system. Commission is also a possibility, but pay-for-results is a more specific and accurate choice in this case.

McMann and Young Advertisers Has Been Hired by Broadway Bicycles