Correct option is C
Channel conflicts arise when different members of a supply chain (such as manufacturers, wholesalers, and retailers) disagree over business objectives, pricing, or market strategies. The two primary types of conflicts are:
1.
Vertical Conflict: Occurs between different levels of the supply chain, such as manufacturers and retailers. For example, a manufacturer selling directly to customers online while also supplying retailers can create conflict.
2.
Horizontal Conflict: Arises between businesses at the same level of the supply chain, such as two retailers competing for the same customers by offering discounts.
Options (C), (D), and (E) are incorrect because "Diagonal," "Circular," and "Triangular" are not recognized types of channel conflicts in marketing literature.
Information Booster:
1.
Causes of Channel Conflict: Price differences, overlapping market coverage, direct selling by manufacturers, and poor communication.
2.
Effects of Channel Conflict: Can lead to reduced cooperation, inefficient distribution, and lower profits.
3.
Ways to Resolve Conflicts: Implementing fair pricing policies, clear communication, offering exclusive distribution rights, and using technology to align objectives.
4.
Example of Vertical Conflict: A clothing brand starts selling products online at lower prices than its retail stores.
5.
Example of Horizontal Conflict: Two competing electronics retailers selling the same brand engage in price wars.
6.
Impact on Consumer Experience: If not managed well, conflicts can result in poor product availability and higher prices.
