A Contractual Vertical Marketing System Refers to an Arrangement Whereby

question 158

Multiple Choice

A contractual vertical marketing system refers to an arrangement whereby

• A)privately owned distributors and retailers integrate their efforts,on a contractual basis,to obtain greater functional economies and marketing impact than they could achieve alone.
• B)independent production and distribution firms integrate their efforts,on a contractual basis,to obtain greater functional economies and marketing impact than they could achieve alone.
• C)a manufacturer offers a limited number of franchise licenses to restrict the number of franchisees within a given geographical region.
• D)a firm reaches different buyers by employing two or more different types of channels for the same basic product.
• E)a firm formally designates by contract one channel member-whether producer,wholesaler,or retailer-to coordinate,direct,and support all other channel members.

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Definitions:

Firms' Revenues

The total income generated by businesses from selling their goods or services before any expenses are deducted.

Personal Savings

The portion of an individual’s income that is not spent on consumption and is set aside for future use, typically in a savings account or investment.

Marginal Cost

The increase in cost that arises from producing one additional unit of a product or service.

R&D Financing

The process of funding research and development activities, typically involving significant investment in innovation and technology to spur growth and competitive advantage.