Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel?
A) legitimate power
B) coercive power
C) referent power
D) reward power
E) logistical power

Question

Quizplus · Accepted Answer

Coercive power is being used by Acme Manufacturing because they are using the threat of negative consequences (slowing down deliveries and postponing product availability) to influence the behavior of their resellers. This type of power relies on the fear of negative results rather than on mutual respect or admiration.

Because the Company Was Angered by the Actions of Its