Which of the following is an example of forward integration in a corporate vertical marketing system?
A)A car manufacturer acquiring a retail showroom
B)A car dealer achieving a direct channel of distribution without ownership
C)A grocery wholesaler buying a sugar manufacturer
D)A laptop distributor buying a computer chip maker

Question

Quizplus · Accepted Answer

Forward integration is when a company acquires a distribution channel closer to the end customer. In this case, a car manufacturer acquiring a retail showroom is an example of forward integration as it allows them to reach customers directly and control the sales process. The other options do not involve the acquisition of a distribution channel closer to the end customer.

Which of the Following Is an Example of Forward Integration