Vertical channel conflict occurs between members of the same distribution channel, such as a manufacturer and retailer. Horizontal channel conflict occurs between competitors at the same level of the distribution channel, such as between two retailers selling competing products. Channel conflict arises due to goal incompatibility, unclear roles and rights, differences in perceptions, and intermediaries' dependence on manufacturers. It can be managed through adopting superordinate goals, exchanging employees, co-optation, and using mediation, negotiation, or legal means.