Which term refers to the idea that compensation should reflect the normative profit shares of each channel member?
A) equity principle
B) speculative selling
C) productive activity
D) channel gap
E) postponement

Question

Quizplus · Accepted Answer

The term that refers to the idea that compensation should reflect the normative profit shares of each channel member is the equity principle. This principle suggests that each member of the distribution channel should receive a fair share of the profits based on their contribution to the overall value chain. Therefore, the compensation of each channel member should be aligned with their respective roles and responsibilities in the channel.

Which Term Refers to the Idea That Compensation Should Reflect