The conditions for unaligned retailer and manufacturer incentives include
A) customers are familiar with the product before they shop for it
B) retailers have no opportunity to educate consumers
C) manufacturers have little scope for educating consumers
D) demand for the product is decreased with some consumer education

Question

Quizplus · Accepted Answer

Unaligned retailer and manufacturer incentives occur when manufacturers have little scope for educating consumers, leaving the retailers to educate the customers. This can lead to conflicts, as retailers may promote alternative products or brands that offer them better incentives, even if they do not meet the customer's needs. Customers being familiar with the product before shopping for it (option A) or decreased demand due to consumer education (option D) are not necessarily related to unaligned incentives. Retailers having no opportunity to educate consumers (option B) would result in aligned incentives, where manufacturers take on the responsibility of educating customers.

The Conditions for Unaligned Retailer and Manufacturer Incentives Include