Which of the Following Statements About a Vertical Marketing System

question 107

Multiple Choice

Which of the following statements about a vertical marketing system (VMS) is true?

• A) A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.
• B) Members of a VMS operate totally independently of one another outside of buying and selling one another's products.
• C) The three types of vertical marketing systems are independent, conventional, and customized.
• D) Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.
• E) Conventional marketing systems are more efficient than vertical marketing systems.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services.

Total Revenue

The entire amount of income generated by the sale of goods, services, or other financial assets before any deductions are made.

Culture of Poverty

A concept in social theory that suggests that poverty is not a result of individual inadequacies but is instead the outcome of a larger social and cultural atmosphere that perpetuates and sustains poverty.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.