Ashland began as a regional petroleum refinery business. Then it opened Ashland Distribution which has become a leading distributor of oil-based products in the United States. This is an example of a(n) _____ that operates in the business market.
A) contractual VMS
B) administered VMS
C) wholesaler-sponsored voluntary chain
D) corporate VMS
E) franchise system

Question

Quizplus · Accepted Answer

Ashland's expansion from a petroleum refinery business to opening Ashland Distribution, a leading distributor of oil-based products, is an example of a corporate vertical marketing system (VMS). In a corporate VMS, a single company controls the entire business process from production to distribution, which is what Ashland has done by expanding its operations.

Ashland Began as a Regional Petroleum Refinery Business