According to the equity principle,the compensation of each channel member should be based on the ________.
A) power of the channel captain
B) equal division of channel profits
C) external competitive environment
D) value created by the channel member
E) promotional efforts of the channel member

Question

Quizplus · Accepted Answer

The equity principle suggests that the compensation of each channel member should be based on the value created by that particular member. This means that the channel member's contributions, such as their efforts in marketing, promotion, and logistics, should be acknowledged and rewarded accordingly. It is not based on the power of the captain, equal division of profits, or the external competitive environment.

According to the Equity Principle,the Compensation of Each Channel Member