Which of the following is an example of a contractual VMS?
A) Radio Shack stores owned by the parent company
B) Post cereals
C) Holiday Inn franchises
D) Kraft dairy products
E) all of the above

Question

Quizplus · Accepted Answer

A contractual vertical marketing system (VMS) involves independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. Holiday Inn franchises are an example of this, where the franchisees (independent business owners) enter into a contract with the franchisor (Holiday Inn brand) to use the branding, operational systems, and marketing in exchange for fees or a percentage of the revenue.

Which of the Following Is an Example of a Contractual