A producer decides to advertise products on its website at reduced prices, while continuing to distribute products to its current retailer customer base. This decision is likely to result in horizontal channel conflict.

Question

Quizplus · Accepted Answer

This situation is more likely to result in vertical channel conflict, as it involves different levels of the distribution channel (the producer and its retailers) rather than conflict between entities at the same level of the distribution channel, which would be horizontal conflict.

A Producer Decides to Advertise Products on Its Website at Reduced