A system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and co-ordination and to reduce conflict is referred to as a(n)_____ vertical marketing system.
A)administered
B)corporate
C)parental
D)contractual
E)member control

Question

Quizplus · Accepted Answer

This type of system is referred to as a contractual vertical marketing system, where independent firms join together through contracts to achieve common goals such as cost reduction and coordination. The other options do not accurately describe this type of system. Administered vertical marketing systems involve dominant firms coordinating activities with others in the supply chain, while corporate vertical marketing systems involve a single firm owning multiple levels of the supply chain. Parental and member control systems are not commonly used terms in marketing.

A System in Which Independent Firms at Different Levels of the Supply