The MPC and MPS

question 262

Multiple Choice

The MPC and MPS

• A) can sum to anything greater than 0.
• B) sum to 1.
• C) sum to 100.
• D) each are usually less than .5.

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Definitions:

Contractual Vertical Marketing System

A system in which independent firms at different levels of the distribution chain work together through contractual agreements to achieve greater economies of scale and reach a greater market effectiveness than they could achieve alone.

Horizontal Marketing System

A collaboration strategy where companies at the same level of the value chain join forces to exploit a marketing opportunity.

Administered Vertical Marketing System

A coordinated marketing system managed by a single channel member to achieve efficient distribution.

Wholesaler-sponsored Voluntary Chains

Agreements between independent retailers and wholesalers to engage in bulk buying and standardized selling practices to compete with large chains.