A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.
A) contractual channel
B) dual distribution
C) traditional channel
D) administered channel
E) franchising

Question

Quizplus · Accepted Answer

An administered channel system is one in which the various members informally agree to cooperate with each other, as opposed to a contractual channel system where there is a formal agreement in place. In a dual distribution system, a manufacturer uses two or more different channels to reach the same target market. A traditional channel system refers to a distribution system that has existed for a long time and is commonly used in a particular industry. Franchising is a type of licensing agreement in which a franchisor grants a franchisee the right to use its brand name and business model. Therefore, the best choice is D, administered channel.

A Channel System in Which the Various Members Informally Agree