A channel consisting of one or more independent producers,wholesalers or retailers each seeking to maximise its own profits even at the expense of profits for the channel as a whole is a(n)________.
A)vertical marketing system
B)conventional marketing channel
C)independent channel allocation
D)corporate VMS
E)administered vertical marketing system

Question

Quizplus · Accepted Answer

A conventional marketing channel is characterized by multiple independent producers, wholesalers, or retailers who work together but ultimately prioritize their own profits. Each member of the channel makes decisions based on its own self-interest rather than the benefit of the entire channel. In contrast, a vertical marketing system (VMS) involves a unified and coordinated effort among producers, wholesalers, and retailers to maximize profits for the entire channel. Corporate and administered VMS are examples of more coordinated and integrated forms of vertical marketing systems. Independent channel allocation is not a commonly used term in marketing literature.

A Channel Consisting of One or More Independent Producers,wholesalers or Retailers