Downstream vertical integration is LEAST necessary when ________.
A) sales teams are important in creating a strong brand image
B) channel members lack financial incentives to implement brand strategies
C) brand equity among consumers is independent of channel member actions
D) after-sales support of the branded product is necessary to ensure customer satisfaction
E) brand strategy requires a level of cooperation that overrides the decision-making discretion of channel members

Question

Quizplus · Accepted Answer

Downstream vertical integration involves integrating downstream activities such as distribution or sales under the control of the brand owner. However, if brand equity among consumers is highly independent of the actions of channel members, downstream integration may not be as necessary. In this case, sales and brand image are likely to be driven by factors outside of the control of channel members, such as advertising or product quality.

Downstream Vertical Integration Is LEAST Necessary When ________