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(n) Multiple Choice a) franchise agreement. b) joint venture. c) contractual vertical marketing system. d) administered vertical marketing system. e) interdependent contract.

Answer 1

Answer:

c) contractual vertical marketing system.

Explanation:

A contractual vertical marketing system requires a legal agreement to manage the overall process between the various levels of the distribution or production chain.

This system allows businesses to take advantage of economies of scale and advertising bounds.

Franchise system, sponsored retail and sponsored wholesale are aspects of a vertical marketing contractual framework.