Simple Foods, a breakfast cereal brand, has two wholesalers supplying to almost 100 retailers in California. Conflicts arising between the retailers and wholesalers within California will be referred to as horizontal conflicts.

Question

Quizplus · Accepted Answer

Conflicts between retailers and wholesalers are referred to as vertical conflicts because they occur between different levels of the same distribution channel. Horizontal conflicts occur between firms at the same level of the channel (e.g., retailer vs. retailer).

Simple Foods, a Breakfast Cereal Brand, Has Two Wholesalers Supplying