Victor is considering replacing his company's independent sales representatives. He is frustrated because the reps spend little time on the many potential small accounts and provide almost no post-sale service to customers. Victor is struggling with what is called:
A) Core dependency
B) Transaction cost analysis
C) Division of labor specialization
D) Co-marketing alliances
E) Logistical support supervision

Question

Quizplus · Accepted Answer

Victor is struggling with the cost associated with managing the current independent sales representative model. Transaction cost analysis is a framework that helps businesses examine and compare the costs and benefits of different transaction arrangements. This includes analyzing the costs associated with coordinating, monitoring, and enforcing contracts with independent sales representatives. Victor's frustration with the lack of attention to small accounts and post-sale service implies high coordination costs and potentially low benefits. Thus, he is considering an alternative transaction arrangement.

Victor Is Considering Replacing His Company's Independent Sales Representatives