Goodyear manufactures tires and owns the service centers that sell them. Campbell's Soup does not actually own the other channel members. However, its dominant position allows it to influence the distribution decisions of the entire system. For example, it has a major influence over how its products are displayed in retail stores, how its products are promoted, and more. Goodyear is an example of a(n) _______________. Campbell's is an example of a(n) ____________.

Question

Quizplus · Accepted Answer

Goodyear, owning its service centers, exemplifies a corporate vertical marketing system (VMS) where the company owns multiple levels of its distribution. Campbell's, influencing the distribution decisions without owning the distribution channels, represents an administered VMS, where control is asserted through the dominance of one member over others.

Goodyear Manufactures Tires and Owns the Service Centers That Sell