A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor's site, and make a purchase, then the vendor pays a commission to the partner. This scenario illustrates which business model?
A)Find-the-best-price
B)Electronic tendering system
C)Name-your-own-price
D)Online direct marketing
E)Affiliate marketing

Question

Quizplus · Accepted Answer

This scenario describes the affiliate marketing business model, where a vendor incentivizes its partners to promote its products or services on their websites by paying them a commission on any resulting sales. The partners (also known as affiliates) place logos or banners on their websites that direct customers to the vendor's website through a unique referral link. If the customer makes a purchase on the vendor's website after clicking through the affiliate's link, the affiliate earns a commission on the sale.

A Vendor Asks Its Business Partners to Place Logos or Banners