Asked by Kamalpreet Singh on May 19, 2024

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​Mechanisms that manufacturers can use to deal with misaligned retailer incentives include

A) ​setting a minimum retail price
B) providing an exclusive contract to a single retailed in a market
C) compensating retailers' sales staff for demonstrating,as well as selling,the product
D) ​All of the above

Retailer Incentives

Benefits or motivations provided to retailers for achieving specific goals, such as sales targets, often aimed at enhancing performance or fostering loyalty.

Exclusive Contract

An agreement that restricts a party from buying, selling, or engaging in business with any other parties aside from the one specified in the contract.

Minimum Retail Price

The lowest price at which a retailer is allowed to sell a product, often set by manufacturers or by law, to maintain fair competition or preserve product value.

  • Recognize the mechanisms to address misaligned incentives between manufacturers and retailers.
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JV
Joaquin VistanMay 20, 2024
Final Answer :
D
Explanation :
The best choice is D because setting a minimum retail price can prevent retailers from lowering the price too much, providing an exclusive contract to a single retailer can ensure that the retailer is fully committed to selling the product and not promoting competitors, and compensating retailers' sales staff for demonstrating the product can incentivize them to educate customers about the product, leading to increased sales. Therefore, using all three of these mechanisms can help manufacturers deal with misaligned retailer incentives.