When Estee Lauder set up a Web site to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estee Lauder products in its department stores in response to the ________ conflict.
A) horizontal channel
B) multichannel
C) vertical channel
D) grid channel
E) end-customer

Question

Quizplus · Accepted Answer

The conflict in question here is an example of a vertical channel conflict, where a manufacturer and a retailer that are part of the same supply chain (Estee Lauder and Dayton Hudson, respectively) clash due to differences in distribution channels. Estee Lauder's decision to sell directly to end-customers through their website may have been seen as a threat to Dayton Hudson's role as a traditional retail distributor, leading them to reduce space for Estee Lauder products.

When Estee Lauder Set Up a Web Site to Sell