Channel Conflict • …is the behavior by a channel member that is opposition to its channel counterpart • …occurs when one channel member of a channel views its upstream or downstream partner as an adversary, as an opponent.
Measuring Conflict • Counting up the issues • Importance • Frequency of disagreement • Intensity of dispute
Useful Conflict?? • Communicate more frequently • Critically review their past actions • Devise and implement a more equitable split of system resources • Develop a more balanced distribution of power…
Major sources of conflict in marketing channels • Channel members’ goal • Differing perceptions of reality (product/service, segment, competition) • Clash of marketing domains • Intrachannel competition -Multiplechannel s • Unwanted channels: gray markets
Unwanted Channels-Gray Markets • Gray marketing is the sale of authorized, branded product through unauthorized distribution channels. • Usually bargain-discount outlets that provide less customer service than the authorized channels do. • Strawberry.net, Louis Vuitton and Channel in Japan market…(not fake…)
Conflict Resolution Strategies • A relatively passive channel member has an avoidance style of dealing in conflict. • Accommodating to the other part: to be more focused on the other’s goal than on one’s own. • Competition-aggression: playing zero sum by pursuing one’s goals while ignoring the other party’s goals. • Centrist approach: pressing solutions that let each side achieve its goals but only to an intermediate degree. • Close-commited relationships: collaboration strategy…
Resolving conflict • Institutionalized mechanisms • Information-intensive mechanisms • Third-party mechanisms • Building relational norms • Incentives