Contractual vertical marketing systems are designed to achieve which of the following?

The choice referring to the reduction of conflict and economies of scale accurately highlights the core purpose of contractual vertical marketing systems. This type of system is established through formal agreements among independent firms at different levels of the distribution channel—such as wholesalers, retailers, and manufacturers. By entering into these contracts, members of the channel can coordinate their strategies and operations more effectively.

This coordination helps mitigate potential conflicts that can arise in horizontal or uncooperative channel setups. When firms work together under a contractual marketing system, they are typically better aligned in terms of goals and objectives, leading to smoother operations and improved communication. Additionally, this collaboration fosters economies of scale as firms can combine resources, reduce redundant efforts, and benefit from shared knowledge and expertise.

In contrast, the other choices do not capture the primary focus of these systems. Complete ownership of the channel pertains more to corporate vertical marketing systems, while enhanced brand recognition generally results from promotional strategies rather than the operational structure of the channel. Consumer-driven sales tactics may be influenced by various factors, but they do not directly relate to the intended functions of contractual vertical marketing systems.