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Channel Conflict

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Conflict, Cooperation and Competition

Channel conflict is generated when one channel member’s actions prevent another channel member from achieving its goal.
On the other hand, channel coordination occurs when channel members are brought together to advance the goal of the channel, as opposed to their own potentially incompatible goals.
There are three pertinent issues to be examined here: Types of Conflict and Competition, Causes of Channel Conflict and How to Manage Channel Conflicts.
Case 1: Apple Inc Channel Conflict
In 2003, an Apple reseller, Tom Santos, filed a lawsuit against Apple Computers Inc. . The court case alleged Apple of showing undue preference to its own Apple retail and online stores. The lawsuit claimed that …show more content…

Another common conflict reason is pre- and post-sales support; that is, marketing channels argue over who should do it, how it should be done, and how they should be compensated. A further conflict reason is inventory, since suppliers often consider it a reseller’s duty to carry a large inventory, while resellers instead want to be restocked quickly from a central location.

* Difference in Perception: Even though individual goals within the marketing system may correspond with each other, and domains may be well defined, channel conflict still may occur, due to differing perceptions of reality, i.e. channel members having conflicting perceptions of the same situation. This is an important source of conflict, because it indicates that there will be differing actions in response to the same situation, something that will frustrate channel members and produce conflict. One major reason for such misperception is that different channel members are exposed to varying information and influences, giving them different pieces of the overall picture. In order to achieve needed coordination among channel members, good communication within the channel is necessary. Too much communication is just as bad as too little, since too much contact can overload channel members and have dysfunctional consequences. Therefore, one should examine communication in terms of the amount of contact in relation to the amount of contact necessary to conduct activities

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