Question

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?

A. Commission system
B. Fee arrangement system
C. Cost-plus system
D. Incentive-based compensation system
E. Objective-and-task compensation system

Answer 1

In an incentive-based compensation system, an agency may be more inclined to recommend expensive media such as network television and national magazines to its clients.

Step-by-step explanation:

In an incentive-based compensation system, an agency may be more inclined to recommend expensive media such as network television and national magazines to its clients. This is because in an incentive-based system, the agency's compensation is tied to the success or performance of the media campaign. By recommending more expensive media, the agency has the potential to earn higher commissions or incentives.