What is the major difference between a conventional marketing channel and a vertical marketing system (VMS)?
A) Elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system.
B) A VMS has many intermediaries whereas a conventional marketing channel has a limited number of intermediaries.
C) A VMS is characterized by an independent producer whereas a conventional marketing channel is characterized by multiple producers.
D) A conventional marketing channel has elements such as retailers and wholesalers whereas these elements are not present in a VMS.
E) Producers have complete control over the other members in a conventional marketing channel whereas this control is minimal in a VMS.

Question

Quizplus · Accepted Answer

The major difference between a conventional marketing channel and a vertical marketing system (VMS) is that elements in a conventional marketing channel act as separate businesses whereas the elements in a VMS act as a unified system. In a VMS, there is a high degree of collaboration and cooperation between the producers, wholesalers, and retailers, with the aim of achieving greater efficiency and cost savings. In contrast, a conventional marketing channel typically involves multiple independent businesses, each seeking to maximize its own profits and achieve its own objectives.

What Is the Major Difference Between a Conventional Marketing Channel