Vertical channel integration
A) results in two or more different management teams for each member of the channel.
B) is made possible when a large corporation divests itself of smaller subsidiaries.
C) is a shift back to the conventional channel of distribution.
D) combines institutions at the same level of operation.
E) is made possible by purchasing the operations of a link in the channel.

Question

Quizplus · Accepted Answer

Vertical channel integration occurs when a company expands its operations into areas that are at different points on the same production path, such as when a retailer purchases a wholesaler or a manufacturer. This is often achieved by purchasing the operations of a link in the channel, thereby integrating different stages of production and distribution under a single management.

Vertical Channel Integration