When a producer decides to advertise products on its website and sell them online, while continuing to distribute products to its current retailer customer base, the decision is likely to result in horizontal channel conflict.

Question

Quizplus · Accepted Answer

This scenario describes a potential vertical channel conflict, as it involves different levels within the distribution channel (the producer and its retailers) rather than conflict between entities at the same level of the distribution channel, which would be horizontal conflict.

When a Producer Decides to Advertise Products on Its Website