Marketing Channels – Chapter 4

Four fundamental behavioral processes relevant to the marketing channel are:
power, conflict, role, and communication.
Conflict in the marketing channel is usually referred to as behavior that is:
goal impeding.
SEA Publishing and Kate’s Bookstores are embroiled in conflict over who should establish retail prices. The conflict likely is the result of:
decision domain disagreements.
Two retailers are fighting for the right to represent a major manufacturer in New York. The conflict between these two retailers is probably caused by:
allocation of scarce resources.
_____________ occur when publishers want to sell as much of their product as possible through and when wants to sell as much merchandise as possible from all sources.
Goal incompatibilities
In resolving channel conflict, the channel manager should:
consider a “peace conference” to jointly solve the problem.
_________ is defined as when a channel member exerts control or influence over the behavior of another channel member.
Marketing channel power
Franchisors have the right to tell franchisees how to market products because of the franchise contract. In this case, franchisors are emphasizing the use of:
legitimate power.
Many manufacturers will listen to retailers’ product demands because retailers are knowledgeable about consumer needs. Such retailers are in a good position to emphasize the use of:
expert power.
According to the text, the concept of role is of use to the channel manager because it:
provides him/her with insight into the constraints under which channel members operate.

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