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Chapter 4: Behavioral Processes in Marketing Channels

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Social System
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– Generated by any process of interaction on sociocultural level between two or more actors – Actor is individual or collectivity
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How conflict emerges
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When a channel member perceives that another member’s actions impede the attainment of his or her goals
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Behavioral trademarks
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Direct, personal, and opponent-centered
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Causes of Channel Conflict
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– Role Incongruities – Resource Scarcities – Perceptual Differences
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Role Incongruities
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Everyone in the channel thinks they have a particular role and one person decides not to do that role
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Resource Scarcities
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Too many people are pulling from one source which can include pulling at the same customers
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Perceptual Differences
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Retailers have plans to maximize all store products while wholesalers want to just maximize their own skew
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Bases of Power for Channel Control
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1. Reward 2. Coercive 3. Legitimate 4. Referent 5. Expert
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Reward Power
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If you do nice things, you get rewards (carrot and stick)
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Coercive Power
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Carry these or you’re not carrying other lines
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Legitimate Power
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Through contract or court of law
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Referent Power
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One channel member perceives his goals to be similar to another channel members
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Expert Power
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Heart of franchise relationship. Trust us because we have numbers to support it
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Using power in the channel
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1. Identify available power bases 2. Select and use appropriate power bases to better or worsen channel relationships
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Strongest degree of control
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Power and expert
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Behavioral Problems in Channel Communications
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1. Differences in goals 2. Differences in language to convey information 3. Bad communication 4. Secretive behavior 5. Not enough communication