Brandy's, a National Candy Store Chain, Decides to Open Both

question 49

Multiple Choice

Brandy's, a national candy store chain, decides to open both a coffee house and ice cream shop within their stores to create a multi-faceted experience for shoppers. The company decides to enter into deals with two well-known retailers - The Beanery and Creamy Creations. As stipulated in their respective contracts, The Beanery and Creamy Creations cannot enter into the same type of agreement with any other candy retailers. All three companies will enjoy greater sales, and ultimately profits, from the arrangement. This is most likely an example of a(n) ________ marketing system.

• A) direct
• B) administered vertical
• C) corporate vertical
• D) contractual vertical
• E) horizontal

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Definitions:

Merchandise

Goods that are available for sale in retail, encompassing a wide range of products from clothing to electronics.

Direct Channel

A distribution method where a company sells its products or services directly to consumers, bypassing intermediaries.

Ultimate Consumers

The final users or purchasers of a product or service, typically individuals who buy for personal, family, or household use.

Producers

Individuals or organizations that create goods or services for sale to consumers or other businesses.