In a(n) _____, independent firms--producers, wholesalers, and retailers--operate under legal agreements specifying how they will try to improve distribution efficiency and effectiveness.

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A contractual Vertical Marketing System (VMS) involves independent firms at different levels of production and distribution integrating their programs on a contractual basis to improve efficiency and effectiveness in the marketplace. This contrasts with administered and corporate VMS, where coordination is achieved through the size and power of one of the parties or through ownership, respectively. Direct channels and horizontal channels do not involve legal agreements among independent firms at different levels of the distribution process.

In A(n) _____, Independent Firms--Producers, Wholesalers, and Retailers--Operate Under Legal