Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
A) setting a minimum retail price
B) allowing many retailers to sell the product in each market
C) preventing retailers from compensating sales staff for demonstrating the product
D) eliminate manufacturer staff that was demonstrating the product in stores

Question

Quizplus · Accepted Answer

Setting a minimum retail price helps align retailer incentives by ensuring that retailers maintain a certain price level, which can prevent price wars and ensure that retailers have sufficient margins to promote and sell the product effectively.

Mechanisms That Manufacturers Can Use to Deal with Misaligned Retailer