Define channel conflict and explain how it applies to the retail industry?
Define channel conflict and explain how it applies to the retail industry?
Homework Answers
What is Channel Conflict?
Channel Conflict is a situation in which channel partners have to compete with one another. Channel conflict arises when manufacturer avoids their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet. Channel conflict getting worse when overproduction.
how it applies to the retail industry?
E-commerce is the most popular second distribution channel because of its low overhead expenses and communication costs, so manufacture would like to sell their products in an Online platform. This will directly affect the retailer's sales capacity and lead channel conflict between Online Channel and Retail Channel.
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Define channel conflict and explain how it applies to the retail industry?
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