Ralston-Purina, with its lines of cereal, snack food, and pet food, has such brand equity and market position that it is able to coordinate distribution activities through its market power. It uses a(n): _____ for distribution.
A) contractual VMS
B) administered VMS
C) voluntary chain
D) corporate VMS
E) franchise system

Question

Quizplus · Accepted Answer

Ralston-Purina's ability to coordinate distribution activities through its market power without the need for formal contracts or ownership of the distribution channels indicates the use of an administered vertical marketing system (VMS). This system relies on the size and power of one dominant player to control the activities of other members in the distribution channel.

Ralston-Purina, with Its Lines of Cereal, Snack Food, and Pet