What typically occurs as the formality of a vertical marketing system increases?

As the formality of a vertical marketing system increases, conflict among members is less likely to ensue because a more structured system typically involves established roles, responsibilities, and communication channels. In a formal vertical marketing system, there is often a clear hierarchy and a coordinated effort towards mutual goals. This structure helps to align the interests of the various members—such as manufacturers, wholesalers, and retailers—reducing ambiguities that can lead to disputes.

Furthermore, formal agreements and defined processes can facilitate cooperation and enhance operational efficiencies, fostering a sense of partnership rather than rivalry. This environment reduces the potential for misunderstandings and conflicts, as all parties have a shared understanding of expectations and objectives.