When firms purchase retail outlets,and producers control their purchasing, production and marketing activities, this is called which of the following?
A)Administered vertical marketing system
B)Central vertical marketing system
C)Corporate vertical marketing system
D)Contractual vertical marketing system

Question

Quizplus · Accepted Answer

When firms purchase retail outlets and producers control their purchasing, production, and marketing activities, it is called a corporate vertical marketing system. In this system, a single company owns all of the different levels of the supply chain, which allows for more control and coordination of the production process. The other options are incorrect because they refer to different types of vertical marketing systems. An administered vertical marketing system is when one company takes the lead in coordinating the activities of a whole supply chain, while a central vertical marketing system is when dominant producers or retailers control the entire supply chain. Finally, a contractual vertical marketing system is when independent companies agree to work together through contracts and agreements, but they remain separate entities.

When Firms Purchase Retail Outlets,and Producers Control Their Purchasing, Production