When Zappos Inc., an online marketer of shoes, accessories, and clothing, contracts out the physical distribution task to third parties such as UPS, this arrangement is known as . This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

Question

Quizplus · Accepted Answer

This arrangement is known as outsourcing because Zappos is contracting out the physical distribution task to a third party, UPS, which does not have managerial authority within Zappos' marketing channel.