Question

In return for the endorsement of its products, FTD Florists gives the AARP (Association of American Retired People) a reduced rate on all flower deliveries. FTD also gives the AARP back a percentage of sales it makes as a result of using the AARP name in its ads. AARP members have provided information to FTD about the types of flowers they like to give and receive and on the types of occasions when they believe flowers should be sent. This is an example of a ______ between a buyer and a seller.

A. Market exchange
B. Strategic partnership
C. Transactional relationship
D. Functional relationship
E. Transformational relationship

Answer 1

The example provided is a strategic partnership between FTD Florists and AARP, based on a common interest in reaching senior citizens and providing them with flowers for specific occasions.

Step-by-step explanation:

The example provided, where FTD Florists gives the AARP a reduced rate on all flower deliveries and gives a percentage of sales back to AARP, is an example of a strategic partnership between a buyer and a seller. In a strategic partnership, two organizations collaborate and form a mutually beneficial relationship, often involving shared resources and goals.

FTD and AARP are working together based on a common interest in reaching senior citizens and providing them with flowers for occasions they deem appropriate. The collaboration involves exchange of benefits such as reduced rates for AARP members and sales revenue back to AARP from FTD. This partnership enhances both organizations' reach and profitability.

This example falls under the subject of Business and is suitable for High School level students studying business concepts and strategies.