Which of the following is a characteristic of a horizontal marketing system?Select one:a.It involves a single channel member performing all distribution functionsb.It involves the use of multiple channels to reach customersc.It is controlled by a dominant channel member, such as a manufacturer or retailerd.It consists of independent channel members working together through contracts and agreementsClear my choice
Question
Which of the following is a characteristic of a horizontal marketing system?Select one:a.It involves a single channel member performing all distribution functionsb.It involves the use of multiple channels to reach customersc.It is controlled by a dominant channel member, such as a manufacturer or retailerd.It consists of independent channel members working together through contracts and agreementsClear my choice
Solution
To answer the question, we need to understand the characteristics of a horizontal marketing system.
A horizontal marketing system is a type of distribution system where independent channel members work together through contracts and agreements.
Now, let's look at the options provided:
a. It involves a single channel member performing all distribution functions: This option does not align with the characteristic of a horizontal marketing system, as it suggests a vertical marketing system where a single channel member controls all distribution functions.
b. It involves the use of multiple channels to reach customers: This option also does not align with the characteristic of a horizontal marketing system. The use of multiple channels suggests a multichannel marketing system, not a horizontal one.
c. It is controlled by a dominant channel member, such as a manufacturer or retailer: This option does not describe a horizontal marketing system. Instead, it describes a vertical marketing system where a dominant channel member controls the system.
d. It consists of independent channel members working together through contracts and agreements: This option accurately describes a characteristic of a horizontal marketing system. In a horizontal marketing system, independent channel members collaborate and coordinate their efforts through contracts and agreements.
Therefore, the correct answer is d. It consists of independent channel members working together through contracts and agreements.
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