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

Question

Quizplus · Accepted Answer

By offering larger discounts to the channel members for one brand over the other, IMA is likely to create channel conflict among retailers and auto repair service businesses who prefer the Quaker State brand. This conflict could lead to a breakdown in cooperation and communication in the channel, which could ultimately harm IMA's relationships with its customers.

IMA Wholesalers Is a Distributor of Car Repair Parts and Supplies