A Sneaker Company Creating Its Own Stores Where It Sells

question 40

Multiple Choice

A sneaker company creating its own stores where it sells only its own brand is an example of which of the following?

• A)forward vertical integration
• B)backward horizontal integration
• C)forward horizontal integration
• D)reverse vertical integration

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Definitions:

Communication Investments

The allocation of resources towards marketing communication channels aiming to promote a brand or product.

Loss-leaders

Products sold at a loss to attract customers to a store where they are likely to purchase other items at a profit for the retailer.

Market Wreckers

Market wreckers are competitors or entities that disrupt the traditional flow of the market by introducing significantly lower prices, innovative products, or aggressive tactics, altering the competitive landscape.

Cross-sellers

Products or services that are promoted to existing customers alongside their original purchases to increase the value of their shopping basket.