The leading producer in the U.S. of aluminum railings used in a variety of sites such as hospitals, stadiums, schools controls the channel of distribution through which its railings are sold by the force of its market power. This is an example of a(n):
A) contractual VMS.
B) administered VMS.
C) wholesaler-sponsored voluntary chain.
D) corporate VMS.
E) franchise system.

Question

Quizplus · Accepted Answer

An administered vertical marketing system (VMS) is characterized by the coordination of successive stages of production and distribution through the size and power of one of the parties without formal agreements. In this case, the leading producer's control over the distribution channel due to its market power is a classic example of an administered VMS.

The Leading Producer in the U