A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:
A) an administered channel system.
B) a contractual channel system.
C) a traditional channel system.
D) a vertically integrated corporate channel system.
E) a franchising system.

Question

Quizplus · Accepted Answer

This is an example of an administered channel system, where a dominant company (in this case, the computer manufacturer) coordinates promotional efforts and supports its retailers without formal agreements or contracts, relying on the size and power of the dominant company to control the channel activities.

A Computer Manufacturer Runs Training Programs for Its "Cooperating" Retailers