Question

Over time, members of the supply chain often formalize their relationship by entering into contracts that dictate various terms, such as how much Walmart will buy from P&G each month and at what price, as well as the penalties for late deliveries. This contract is an example of a:___________. a) franchise agreement. b) joint venture. c) contractual vertical marketing system. d) administered vertical marketing system. e) interdependent contract.

Answer 1

c) contractual vertical marketing system

Step-by-step explanation:

correct answer is contractual vertical marketing system because contract vertical marketing system means that different levels of production and distribution companies work together to achieve greater economies or sales. These organizations coordinate their strategies through contractual agreements to eliminate channel conflicts arising from personal goals.