Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Question

Quizplus · Accepted Answer

In a commission system, the agency earns a percentage of the amount spent by the client on advertising. Therefore, the agency has an incentive to choose more expensive media as they will earn a higher commission. Network television and national magazines are generally more expensive than other media options, so under this type of compensation system, the agency may be more inclined to recommend them to their clients.

Under Which Type of Compensation System Might an Agency Be