Which of the following statements about changes in the way advertising agencies are being compensated is true?
A. Most clients do not pay full commissions to their agencies because they prefer to use some type of fee or incentive-based system as they seem more equitable than the commission system.
B. With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation.
C. From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions.
D. Since most clients want their agencies to be in total charge of the integrated marketing communications process, they are willing to compensate them based on media commissions.
E. In a negotiated commission system, commission is usually greater than 15 percent.
Answer: A