Final answer:
In an administered vertical marketing system (VMS), interorganizational relationships are close and coordinated. Organizations within the VMS collaborate closely to achieve common goals and secure mutual benefits.
Step-by-step explanation:
In an administered vertical marketing system (VMS), interorganizational relationships are close and coordinated. This means that the organizations within the VMS work together closely to achieve common goals and secure mutual benefits. They collaborate in areas such as production, distribution, and marketing, sharing information, resources, and expertise.
For example, a manufacturer, wholesaler, and retailer may form a VMS where they coordinate their activities to streamline the supply chain and improve overall efficiency. They may collaborate on product development, pricing, promotion, and inventory management to optimize the flow of goods from production to end customers.
These strong interorganizational relationships in an administered VMS facilitate better coordination, faster decision-making, and improved customer satisfaction.