Final answer:
The correct answer to what type of vertical marketing system is controlled by a member out of power and size is option 3) Administered vertical marketing system.
Step-by-step explanation:
In a vertical marketing system, one of the channel members might control the rest of the system through its significant power and size. This member can dictate the activities of other channel members, even without having an ownership stake in those businesses. In such a scenario, the power to influence or control rests on the economic might or size of the dominant member, rather than contractual obligations or corporate ownership. The correct answer to the question, "What is this type of vertical marketing system called?" is option 3) Administered vertical marketing system.
A contractual vertical marketing system involves independent firms at different levels of the production and distribution process integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. A corporate vertical marketing system combines successive stages of production and distribution under single ownership - channel leadership is established through common ownership. Lastly, a conventional vertical marketing system is a multi-level distribution channel where each member works independently.