Scenario 2-5
In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago-based consumers various "deals of the day." At the time, Groupon had a unique business model-each day, one "Groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, years later, the business continues to grow, and the service is being offered in many U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in December of 2010. Continuing the company's rapid rise to success will be a challenging task, because the company will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.
-(Scenario 2-5)Groupon decides to hire a full-service advertising agency to create a new campaign for the company.The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site.This is an example of a(n) system of compensation.

Question

Scenario 2-5
In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago-based consumers various "deals of the day." At the time, Groupon had a unique business model-each day, one "Groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, years later, the business continues to grow, and the service is being offered in many U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in December of 2010. Continuing the company's rapid rise to success will be a challenging task, because the company will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.
-(Scenario 2-5)Groupon decides to hire a full-service advertising agency to create a new campaign for the company.The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site.This is an example of a(n)         system of compensation.

Quizplus · Accepted Answer

The scenario describes a compensation system based on incentives, where the ad agency will be compensated if Groupon sees positive changes in sales and the number of customers on its site. Option A is incorrect because a fixed fee is a set amount paid regardless of the outcome. Option B is incorrect because commission is a percentage of sales paid to a salesperson or agent. Option D is incorrect because a markup charge is an additional fee added to the cost of goods or services.

Scenario 2-5 In 2008, Chicago Native Andrew Mason Launched Groupon, a Website