Question

A system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and coordination and to reduce conflict is referred to as a(n) _____ vertical marketing system.

a) Parental
b) Member control
c) Corporate
d) Administered
e) Contractual

Answer 1

The term for a system where independent companies at different supply chain levels combine their efforts through agreements to achieve scale and coordination is a contractual vertical marketing system.

Step-by-step explanation:

A system in which independent firms at different levels of the supply chain join together through agreements to obtain economies of scale and coordination, and to reduce conflict, is referred to as a contractual vertical marketing system. Contractual vertical marketing systems involve legal agreements between various parties in the supply chain, each operating independently, to create economies of scale and efficiency. This approach to managing the supply chain is different from corporate vertical marketing systems, which would involve the ownership of multiple levels of the chain by a single firm, thereby achieving integration.