The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n):
A) Administered channel system.
B) Corporate channel system.
C) Contractual channel system.
D) Franchise channel system.
E) Channel captain system.

Question

Quizplus · Accepted Answer

An administered channel system is a vertical marketing system where coordination and control are exerted by the dominant channel member through informal means such as power, influence, or leadership. The other channel members cooperate with the dominant member because of mutual benefit or necessity. It is a means of achieving coordination without resorting to formal contracts or ownership arrangements. This system is also known as a conventional distribution system.

The Vertical Marketing System in Which Control Is Maintained Via