Final answer:
The Wicks 'N Sticks organization utilizes a contractual vertical marketing system for its franchised retail stores, where independent retailers are contractually bound to cooperate and use franchising as a common form of this arrangement.
Step-by-step explanation:
The Wicks 'N Sticks candle and gift marketing organization has a contractual vertical marketing system arrangement with its franchised retail store operations. Vertical marketing systems are ways in which companies within a distribution channel work together to serve the needs of consumers. There are three types of vertical marketing systems: corporate, administered, and contractual.
In a contractual vertical marketing system, independent firms at different levels of the distribution channel join through contracts to obtain economies of scale and coordination and to reduce conflict. Franchising is a common type of contractual arrangement where a franchisor provides a licensed privilege to the franchisee to do business.