High-quality bicycle manufacturer Gregg's Cycles does not sell its products online,nor do they allow their bicycles to be sold online by others.By not selling online,Gregg's Cycles avoids ________ with its dealers and the independent bike shops that sell its bikes.
A) pricing conflict
B) channel conflict
C) multichannel distribution
D) disintermediation

Question

Quizplus · Accepted Answer

By not selling its products online, Gregg's Cycles avoids channel conflict with its dealers and independent bike shops that sell its bikes. Channel conflict can arise when a manufacturer sells its products directly online, undercutting its dealers and independent retailers who are selling the same products. By avoiding online sales, Gregg's Cycles is able to maintain good relationships with its distribution partners.

High-Quality Bicycle Manufacturer Gregg's Cycles Does Not Sell Its Products