A channel consisting of one or more independent producers,wholesalers,or retailers that seek to maximize their own profit-even at the expense of profits for the channel as a whole-is a(n)________.
A) vertical marketing system
B) conventional distribution channel
C) independent channel allocation
D) corporate VMS
E) administered vertical marketing system

Question

Quizplus · Accepted Answer

A conventional distribution channel consists of independent businesses seeking to maximize their own profits, often at the expense of the overall profitability of the channel. This is in contrast to vertical marketing systems (VMS) where channel members work together to maximize the overall performance of the channel. With a corporate VMS, a single entity owns and controls the entire channel, while an administered VMS involves a dominant player coordinating the activities of the other channel members. Independent channel allocation is not a recognized marketing term.

A Channel Consisting of One or More Independent Producers,wholesalers,or Retailers