In the distribution channel for Pizza Hut, channel members are linked by legal agreements that spell out the obligations and rights of each member. This is an example of a(n) vertical marketing system. a. negotiated b. contractual c. institutional d. corporate e. administered

Contractual vertical

Explanation:

Contractual vertical involves a collaboration between different firms in production and distribution to take advantage of economies of scale that would have not been possible individually.

Contractual agreements are made to eliminate channel conflicts.

In this scenario channel members in distribution for Pizza hut have legal agreement that spells out the obligations band rights of each member. This is an example of contractual vertical.

Contractual marketing System

Explanation:

Contractual marketing system is a form of vertical marketing where different firms work together in order to enjoy the benefits of economy of scale rather than operating individually.

This type of agreement are guided by contractual agreement that spell out the obligations of each member and other relative terms and conditions in order to prevent potential conflict that might arise in the course of the business