Question

In an administered vertical marketing system,
a. no individual participant has control over the others since a third-party administrator oversees the entire supply chain.
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 as a group 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 1

Answer:

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

Explanation:

An administered vertical marketing system is a coordinated distribution channel where the downstream of products or services is controlled by one participant due to its larger size and power instead of contractual ties.

An example would be Wal-Mart, since it is able to control the downstream distribution channel simply because it is one of the largest retailers in the world.