What characterizes an administered vertical marketing system?

An administered vertical marketing system is characterized by the dominance of one channel member that establishes the terms and conditions for the overall operation of the marketing channel. This structure allows the dominant member, often a larger retailer or wholesaler, to influence or dictate various aspects of how the channel operates, including pricing, product selection, and marketing strategies.

This form of system typically works to enhance efficiency and coordination across the supply chain, as the dominant member facilitates communication and decision-making among the other channel members. By centralizing power, the administered system can ensure that all members are aligned with the overall marketing strategy, which can lead to more effective distribution and stronger market presence.

The other options do not reflect the nature of an administered vertical marketing system: equal power among channel members suggests collaboration rather than dominance, independent operations indicate a non-cohesive relationship, and strict regulatory control implies external enforcement rather than internal channel member authority.