Human Relations in Organizations: Applications and Skill Building 8th Edition by Robert Lussier

Exercise 39

John Stanton: Amway Charley Roys wanted to get more consulting jobs, so he went to a Rotary International meeting to make more contacts that could lead to consulting jobs. During the meeting he was talking to different people and giving out his business card.
This one guy, John Stanton, said to Charley, "Hi, my name is John Stanton, and I have an interesting part-time business. I'm looking for people to share this business opportunity with. Would you be interested in making an additional $50,000 a year part-time?" Charley said yes, and he tried to get some ideas of what the business was all about, but all John would say was, "Let's meet for a half hour or so and I will tell you about it." So they agreed to meet the next day at Charley's house.
Charley asked John what the business name was, and John said, "Let me explain the opportunity first." John started drawing layers of people, stating how much Charley would earn from each layer of people selling products for him. All Charley would have to do is sign people up like John was doing and the money would come in. The figures were showing that Charley could make $50,000 a year from a part-time business.
Before John finished, Charley asked, "Is this Amway?" John said, "Yes, it is." Charley said, "I've seen this type of presentation before, and I'm not interested in being an Amway distributor." Charley told him that he did not want to sell products. John replied, "That's not where the money is. You don't have to actually sell the Amway products yourself. You just sign people up and get them to sell the products."
Charley said, "How can I expect others to sell the products if I don't sell any? The whole pyramid is based on selling products." Charley asked John why he did not tell him it was Amway when he asked him at the Rotary Club meeting. John said, "Many people have the wrong impression of Amway, and you really have to have time to see the presentation."
Charley said that he knew that there were some Amway distributors who were really making a lot of money, but that it was not the type of business he would be successful in. Amway was not for him. Before John left, he asked Charley if he knew of anyone who would be interested in making a lot of money part-time. But Charley said no, so John left.
Answer the following questions. Then in the space between questions, state why you selected that answer.
Amway's business is based mainly on bargaining.
A) distributive
B) integrative