2. CHANNEL CONFLICT ?
Generated when one channel member’s actions prevents the
channel from achieving goals
CHANNEL COOPERATION ?
Occurs when channel members are brought together to
advance the goals of the channel
3. TYPES OF CONFLICT ?
1. Vertical channel conflict : Diff. level within same channel;
E.g. HLL Vs Distributors –Commission issue
Petrol pump Vs petroleum companies – commission
2. Horizontal channel conflict : Bet members at same level
E.g. Multiple manufacture sell through same or diff channel
3. Multichannel conflict: manufacturer est. two or more channel
e.g. 1980 Escorts Ltd. – tried to create parallel dealership-
massive protest of dealers.
4. CAUSES OF CONFLICT ?
1.Goals Incompatibility :
2.Communication breakdown :
3.Differences in Perception
MANAGING CHANNEL CONFLICT :
Agreement on fundamental goals
Co-optation
Diplomacy
Mediation
Arbitration