Scenario 2-5
In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago 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, only two years later, the business continues to grow, and the service is being offered in several more 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 for CEO Andrew Mason and his team because they 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 through an incentive based program that will measure increased brand awareness and brand identification. This type of compensation program is called a
A) fee system.
B) commission system.
C) pay-for-results system.
D) mark-up charge system.
Correct Answer:
Verified
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