Backward integration is typically evident when a:
A)manufacturer purchases wholesalers.
B)wholesaler purchases channel members above it.
C)producer purchases distributors below it.
D)manufacturer holds ownership of retailers.

Question

Quizplus · Accepted Answer

Backward integration occurs when a company acquires or merges with a company that supplies products or services to it, essentially moving backward in the supply chain. In this context, a wholesaler purchasing channel members above it (such as suppliers or manufacturers) is an example of backward integration, as it is acquiring control over its supply source.

Backward Integration Is Typically Evident When A