IMA Wholesalers is a distributor of car repair parts and supplies, selling to both retailers and auto repair service businesses. If IMA has been promoting the Pennzoil brand of oil over the Quaker State brand of oil by offering larger discounts to the channel members, and it continues to do this, is likely to result.

Question

Quizplus · Accepted Answer

Offering larger discounts for one brand over another can lead to channel conflict as it may cause dissatisfaction among channel members who prefer or have commitments to the less-promoted brand.

IMA Wholesalers Is a Distributor of Car Repair Parts and Supplies