Channel Conflict

Channel conflict
Channel conflict or otherwise known as dismissal of the online sources. This is done through channel eliminating the middleman may and can help close the gaps between the buyers and sellers.

Benefits of selling directly

In the normal process of distribution channels it would pass through such channels as supplier, manufacturer, wholesaler, retailer and finally to the buyer. With a process through cutting out the intermediaries there is direct contact through distribution channels and passing through a chain of supplier, manufacturer and then buyer.
Channel conflict can create benefits such as having direct control with pricing which will keep consumers satisfied therefore having customer returning to your website.

 

The different types of conflict
Vertical channel conflict:

Is a disagreement that occurs between two or more channel members on a consecutive levels.

Horizontal channel conflict:

Where a disagreement between two or more members of a channel. The members of the channel are on the same level.

Multichannel conflict:

This is where there is a disagreements among members that are in a separate marketing channels

 

An example where you have purchased something from a company that sells online and from a bricks and mortar store. Explain which one you chose and why?

East Bay is a fantastic online store and has direct factory supplies. It can be easier to buy direct from the supplier rather than buying further down the line at a retail store. It can be more convenient and cost less and also provide far more variety. Also there can be more sales than a bricks and mortar store, this due to the fact that a bricks and mortar store may not have the storage place for a lot of items. Generally there is better product information and guarantees when you buy direct as the brand has more power than the smaller stores.  

Source:

http://www.softwarethinktank.com/wp-content/uploads/Resolving-Channel-Conflict-with-Partners.jpg

 

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