Jacob has developed a lawn care service that will revolutionize the lawn care industry. Jacob, however, has limited operating capital and still wants a wide distribution of his new product. Which of the following options might he choose?

Question

Quizplus · Accepted Answer

By establishing a contractual vertical marketing system, such as a franchise, Jacob can expand his business rapidly without having to invest in branch offices, while still maintaining control over the quality and consistency of his lawn care service. This option would require less operating capital than a corporate vertical marketing system and still provide a wide distribution of his new product. The option of establishing a wholesaler-sponsored vertical marketing system would not be the best fit for a lawn care service, as it is better suited for products with standardized features, such as packaged goods. Opening up branch offices around the country would require significant operating capital and may not result in necessary returns to justify the expenses.

Jacob Has Developed a Lawn Care Service That Will Revolutionize