In a corporate vertical marketing system,

In a corporate vertical marketing system, 



A. conflict tends to be a major problem.

B. independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict.

C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.

D. independent firms join together formally to decide how the marketing channel will operate.

E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.


Answer: E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain


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