In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members

• A. Franchised channel
• B. Conventional marketing channel
• C. Corporate vertical marketing system
• D. Administered vertical marketing system

Answer: (B)

This describes how members behave in a conventional marketing channel: each firm acts in its own self-interest, pursuing its own profits with little or no centralized coordination. Because there’s no single owner or formal alignment across the channel, independent producers, manufacturers, and retailers make decisions that maximize their own gains, even if those choices harm others in the chain through price wars, conflicting promotions, or inconsistent service levels.

In contrast, franchised channels operate under a shared system with standardized rules and support from the franchisor; corporate vertical marketing systems are owned and controlled by a single company across multiple channel levels, ensuring unified goals; and administered vertical marketing systems rely on a dominant member to influence others without ownership. The described independent, profit-centered behavior fits the conventional setup best.