channel conflict - class

7/24/2019 Channel Conflict - Class

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Channel Conflict


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What is Channel Conflict? In channel distribution, conflict is not

negative, rather, some conflict actually

strengthen and improves a channel. Channel conflict arises when the behavior of

a channel member is in opposition, to itschannel counterpart. It is opponent centered

and direct, in which the goal or object soughtis controlled by the counterpart.

Coughlan, Anderson, Stern, Adel, p. 23


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!ypes of Conflict Latent conflict" norm in mar#eting channels $

conditions are right for contention by theorganization is unaware of it (lacing perception!.

Perceived conflict" cognitive, emotionless andmental "channel member senses some sort ofconflict e#ists$ all in a days wor.

Felt conflict" affective conflict, when emotions do

enter the e%uation. Manifest conflict" visible, e%pressed in behaviour.

&sually seen as bloc#ing each other's initiative or(ithdra(ing support.


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)easuring Conflict Count " counting * of Issues

Importance " (eighting or scale

+reuency " freuency of disagreement Intensity " of dispute -ho( disparate

C/0+1IC! Importancei +reuencyi Intensityi

Inde% of Conflict " can be used to compare membersin a channel

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Calculating Conflict Practice Exercise

-ta#e home " ans(ers (ill be on class (ebsite Analy5ing 3 issues in conflict (ith car dealers and the manufacturer6

7isagreement about volume discount programs for carrying your o(n inventory -smallcar dealers see no advantage, big dealers see lots Importance of issue 8 small 894:

and the 8 big 94:

+reuency is monthly -every shipment Intensity is very disparate ;94:


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7esirable ConflictConflict can induce6

4. )ore freuent and effective communication

2. Create outlets for grievances3. )embers to critically revie( past actions

8. !he more euitable split of resources

>. !he balance of po(er to shift more euitably=. Standardi5ation for dealing (ith future

conflict and boundary delineation


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7amage from Intense Conflict igh channel conflict can create costs

"as shown in fig. &.' on age )*+.

!rust diminished Commitment to relationship in @eopardy


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Sources of Conflict Competing goals

)argins, unit sales, e%pense control, inventory,incentives, promotions, allo(ances, volumes and

thresholds, mar#et penetration ob@ectives$ erceptions of reality

Attributes of product or service are$ Application served and segments served What is the competition

7omain of control )ore often a perception that the other channel member is

not pulling their (eight for a domain that should be theirs.


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+ueling Conflict !he Conflict propensityis strongly correlated

to the uantity of historical incidence

Threats" induction by punishments and9orsanctions -Coercion can lead to escalatingconflict and ultimate channel damage

Unbalanced poeris indicative of shortBtermrelationship e%pectations " propensity forconflict is increased


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Conflict !E"#LUT$#% "T!&TE'$E" InformationBIntensive )echanism


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Styles of Conflict


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!han#s Wor# through the Conflict )easurement

E%ercise and chec# your ans(ers (ith the

(eb )idB!erm uestions?

channel conflict - class

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