Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it partially or wholly owns.Sears participates in a _____ vertical marketing system.
A) retail cooperative
B) contractual
C) selective
D) corporate

Question

Sears obtains over 50 percent of the goods it sells in its retail stores from companies that it partially or wholly owns.Sears participates in a _____ vertical marketing system. 
A) retail cooperative
B) contractual
C) selective
D) corporate

Quizplus · Accepted Answer

Corporate vertical marketing systems involve single ownership of two or more levels of a channel. Firms may choose to develop corporate vertical marketing systems in order to compete more effectively with other marketing systems, to obtain scale economies, and to increase channel cooperation and avoid channel conflict.

Sears Obtains Over 50 Percent of the Goods It Sells