Compare a conventional distribution channel and a vertical marketing system
What will be an ideal response?
A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole. No channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict. Historically, conventional distribution channels have lacked leadership and power, often resulting in damaging conflict and poor performance. In contrast, a vertical marketing system (VMS) consists of producers, wholesalers, and retailers acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must all cooperate. The VMS can be dominated by the producer, the wholesaler, or the retailer.
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A. exclusive-use clause B. cotenancy clause C. fixed-rate clause D. common area maintenance clause E. prohibited-use clause
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Indicate whether the statement is true or false.
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a. Coca-Cola b. Ford c. Facebook d. Samsung
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a. Generate valuable information about customers. b. Generate information about the purchase patterns of customers. c. Generate information about customer behavior. d. All of the above