What is a major difference between an administered vertical marketing system and a contractual system?
A) Administered marketing systems are larger than contractual systems.
B) Administered systems depend on channel captains, whereas contractual systems depend on formal agreements.
C) Administered systems usually have common names and similar inventories, whereas contractual systems may include non-competing members.
D) Contractual systems depend on effective working relationships built up over the years, whereas administered systems depend upon finite control.

Question

Quizplus · Accepted Answer

Administered vertical marketing systems rely on the influence and power of one dominant member (channel captain) to organize the system, whereas contractual systems are based on legal agreements between independent firms to achieve better coordination and economies of scale.

What Is a Major Difference Between an Administered Vertical Marketing