Because each firm in a channel has its own objectives, ________ may threaten a distribution strategy through incompatible goals or poor communication.
A) channel conflict
B) channel power
C) channel cooperation
D) legitimate power
E) coercive power

Question

Quizplus · Accepted Answer

Channel conflict occurs when the objectives of different firms in a channel are incompatible, which can lead to poor communication and difficulty in implementing a distribution strategy. Channel power refers to the ability of a firm to control or influence the behavior of other firms in a channel. Channel cooperation refers to firms working together in a mutually beneficial way. Legitimate power is authority based on a position or role, while coercive power is the use of threats or punishment to influence behavior. Only choice A describes the situation where objectives of different firms threaten a distribution strategy through poor communication or incompatibility.

Because Each Firm in a Channel Has Its Own Objectives