What defines an administered vertical marketing system?

An administered vertical marketing system is characterized by the presence of a dominant member within the channel that exerts control over various operations and processes without formal ownership, as seen in other types of vertical marketing systems. This dominant member, which could be a manufacturer, wholesaler, or retailer, influences the decision-making and activities of the other members in the chain through its power and market position.

This arrangement allows the dominant firm to coordinate and manage the activities of the channel participants effectively, leading to greater efficiency and collaboration. The focus is on establishing a level of control that does not necessitate direct ownership or contractual agreements, allowing for flexibility while still achieving a level of cohesion within the marketing system.

In contrast, the other options describe different types of marketing systems or arrangements that do not align with the characteristics of an administered vertical marketing system. For instance, a scenario where all members are owned by a single parent company describes a corporate vertical marketing system, while no contractual relationships depict an informal or independent approach, which does not define an administered system. Lastly, the notion of all members sharing equal power contradicts the very principle of having a dominant entity that guides the operations of the network.