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 called ____. This is due to the fact that UPS does not have managerial authority within the Zappos marketing channel.

Question

Quizplus · Accepted Answer

The arrangement described here is known as outsourcing, which involves contracting out certain tasks or functions to third-party providers. In this case, Zappos has outsourced its physical distribution task to UPS. This allows Zappos to focus on its core business of marketing shoes, accessories, and clothing, while UPS handles the logistics of delivering these products to customers. It is important to note that this does not give UPS managerial authority within the Zappos marketing channel.