Which of the following statements about channel systems is true?
A) Some administered channel systems have achieved the advantages of vertically integrated systems while retaining more flexibility.
B) All vertical marketing systems are also contractual channel systems.
C) The independence of firms in traditional channel systems has led to channel efficiencies because of greater freedom of decision making.
D) Indirect channel systems seem to be generally more effective than direct channels.
E) Corporate channel systems are competitively superior to administered channel systems.

Question

Quizplus · Accepted Answer

Administered channel systems allow for some coordination and control over the distribution process, while still allowing for flexibility among firms. This can lead to the advantages of a vertically integrated system without the drawbacks of being fully integrated. The other statements are false - not all vertical marketing systems are contractual, independence in traditional channel systems can lead to inefficiencies, and there is no general rule that indirect channels are more effective than direct channels. There is also no clear superiority between corporate and administered channel systems as it depends on the specific industry and market.

Which of the Following Statements About Channel Systems Is True