Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?
A) a conflict between Performance Inc. and The Sneaker Store
B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters
C) a conflict between The Sneaker Store and Sports Discounters
D) a conflict between Performance Inc. and Sports Discounters
E) a conflict between Performance Inc. and Topnotch Manufacturers

Question

Quizplus · Accepted Answer

A vertical conflict occurs between different levels in a distribution channel, such as between a manufacturer and a retailer. In this case, the conflict between Performance Inc. and The Sneaker Store would be considered a vertical conflict as they are at different levels in the distribution channel.