A group of independent retailers seeks to establish a common identity and to generate increased bargaining power through centralized purchasing.Which of the following institutional arrangement should they consider?

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A cooperative is a type of institution in which businesses work together to pool resources and increase bargaining power. This arrangement would allow the independent retailers to maintain their autonomy while still benefiting from the advantages of larger-scale purchasing. Independent vertical marketing systems and fully integrated vertical marketing systems involve a greater degree of coordination and shared decision-making, which may be undesirable for the retailers. A business format franchise involves a more hierarchical relationship between the franchisor and franchisee, which may also be undesirable.

A Group of Independent Retailers Seeks to Establish a Common