When channel members are linked by legal agreements that specify each member's rights and responsibilities, ____ exists.
A) horizontal channel integration
B) an administered VMS
C) a corporate VMS
D) a channel captain
E) a contractual VMS

Question

Quizplus · Accepted Answer

When channel members are linked by legal agreements that specify each member's rights and responsibilities, a contractual VMS (Vertical Marketing System) exists. In a contractual VMS, independent firms at different levels of the supply chain join together by a contract to coordinate their activities. The contract specifies each member's rights and responsibilities, and can either be a simple agreement or a formal legal document like a franchise agreement.

When Channel Members Are Linked by Legal Agreements That Specify