Question

If KitchenAid established an electronic storefront where customers could purchase mixers and accessories from the company’s...

If KitchenAid established an electronic storefront where customers could purchase mixers and accessories from the company’s Web site, it would cause ________ with retailers.

Group of answer choices

vertical channel conflicts

horizontal channel conflicts

exclusive dealing agreements

tying agreements

Business   Economics   
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Answer #1

The correct option is: vertical channel conflicts.

Vertical conflicts involve a disagreement between two-channel members on consecutive levels. For example, if the toy manufacturer discovers its products are arriving at retail stores later than scheduled, a conflict might develop between the manufacturer and the wholesaler responsible for shipping to retailers. At the same time, the retail stores might be in conflict with the wholesaler due to its inability to ship products on time.

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