Which of the following illustrates channel conflict between a manufacturer and its retailer customers?
A)a discounter's selling a manufacturer's product below the price levels at full-service retailers
B)a cooperative advertising program in which retailers are encouraged to use selected advertising materials
C)a manufacturer assisting retailers with inventory financing for its products
D)a manufacturer developing a toll-free hot line for customer support

Question

Quizplus · Accepted Answer

Selling a manufacturer's product at a lower price point through a discounter's channel creates channel conflict between the manufacturer and the retailer customers. The full-service retailers might not be able to compete with the lower prices, which can erode their sales and profits, and damage the relationship with the manufacturer.

Which of the Following Illustrates Channel Conflict Between a Manufacturer