Jacob has developed a lawn care service that will revolutionize the lawn care industry. However, Jacob has limited operating capital and yet he still wants a wide distribution of his new product. Which of the following options would be the best choice for Jacob?

Question

Quizplus · Accepted Answer

Opening branch offices and establishing a corporate vertical marketing system requires a significant amount of capital, which Jacob does not have. Administered vertical marketing system and wholesaler-sponsored voluntary chains are not suitable for a service business like lawn care. Therefore, the most appropriate choice for Jacob would be to establish a service-sponsored retail franchise system, which provides a wide distribution network at a lower cost as franchisees would be investing their capital.

Jacob Has Developed a Lawn Care Service That Will Revolutionize