A good reason for developing or joining a vertical marketing system is that the whole channel focuses on the same target market at the end of the channel and seems to be more effective. market competition at each level of the channel eliminates inefficient firms and serves consumers' needs better. is that no member of the channel has to bear the costs of the regrouping activities. is that no member of the channel has to plan for the whole channel since good decisions at each level run the channel. All of these are good reasons for developing or joining a vertical marketing system. Which of the following statements about channel systems is TRUE? Traditional channel systems are more efficient because of their greater freedom. Vertical integration works best when discrepancies of quantity arc large. Most corporate channel systems use multichannel distribution. Some administered channel systems obtain the advantages of vertically integrated systems while still retaining flexibility. All of these statements about channel systems are TRUE. Exclusive distribution A. should generally be used only if it is not possible to generate intermediary interest in intensive distribution. is legal as long as it does not involve vertical channel arrangements. arrangements between a producer and intermediary are illegal for most types of products and thus they are not very common in the U.S. usually involves intermediaries who are willing to take over all responsibility for promoting the producer's product. None of these alternatives are correct. Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been A. shown to increase competition. a regular practice in the U.S. encouraged in the U.S. but not in many international markets. a successful strategy for entering international markets. ruled illegal by the U.S. Supreme Court