Certified Supply Chain Professional (CSCP) Practice Exam

What characteristic distinguishes a horizontal marketplace?

1. It focuses exclusively on a single industry

2. It connects buyers and sellers from multiple industries

3. It is primarily for consumer sales

4. It provides personalized services to industries

The correct answer is: It connects buyers and sellers from multiple industries

A horizontal marketplace is characterized by its focus on connecting buyers and sellers from multiple industries rather than concentrating on a single industry. This broad approach allows businesses to engage with a diverse range of products and services, which can enhance competition and provide customers with a wider selection. In a horizontal marketplace, the offerings may span various sectors, enabling companies to reach a larger audience and discover new opportunities across different markets. For example, such a marketplace might include suppliers of office supplies alongside those providing IT services, thus promoting a variety of options for businesses seeking different goods and services. In contrast, focusing exclusively on a single industry would rather define a vertical marketplace, which specializes in specific products or services tailored to a particular sector. Meanwhile, prioritizing consumer sales aligns more with retail-focused platforms, and providing personalized services typically pertains to various niche markets or vertical solutions, rather than the broad, inclusive nature of a horizontal marketplace.