A contractual vertical marketing system is exemplified by:
A)a florist shop that buys from a wholesale plant nursery.
B)a coffee producer who owns a chain of coffee shops.
C)the relationship of a popular grocery chain of stores with its suppliers.
D)the franchise system of a reputed sandwich brand.

Question

Quizplus · Accepted Answer

A contractual vertical marketing system involves independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. The franchise system of a reputed sandwich brand is a prime example of this, where the franchisor and franchisees operate under an agreed contract to sell the franchised products or services.

A Contractual Vertical Marketing System Is Exemplified By