Firms may choose to develop corporate vertical marketing systems in order to:

Question

Quizplus · Accepted Answer

Developing corporate vertical marketing systems can lead to scale economies, which means cost savings due to increased production or sales volume. This can be achieved by integrating different levels of the supply chain, such as manufacturing, distribution, and retail, under the control of the same company. Therefore, option A is the best choice. Option B is not applicable to vertical marketing systems, which focus on coordination and integration rather than location convenience. Option C is also not directly related to vertical marketing systems, which can be used in a variety of retail formats. Option D is not a typical objective of vertical marketing systems, which often involve diversification across different stages of the supply chain.

Firms May Choose to Develop Corporate Vertical Marketing Systems in Order