Core Inc., a dealer of electronic items, enjoys economies of scale due to its large buying and selling operations and controls many aspects of the channel's operations. As a consequence of this, the company enjoys tremendous power in the market. In the context of administered vertical marketing systems, Core Inc. is a(n) ________.

Question

Core Inc., a dealer of electronic items, enjoys economies of scale due to its large buying and selling operations and controls many aspects of the channel's operations. As a consequence of this, the company enjoys tremendous power in the market. In the context of administered vertical marketing systems, Core Inc. is a(n) ________.

Quizplus · Accepted Answer

Administered vertical marketing systems refer to a distribution channel where one member of the channel exercises a high degree of control over the activities of others. This dominant member is called the channel captain, and in this case, Core Inc. is the channel captain as it exercises a significant amount of power in the market due to its large buying and selling operations. The other options such as franchise organization, retailer cooperative, wholesaler cooperative, and agent intermediary do not accurately describe Core Inc.'s position in the distribution channel.

Core Inc, a Dealer of Electronic Items, Enjoys Economies of Scale