KitchenAid has established an electronic storefront so that its customers can purchase mixers and accessories from its website.This establishment of electronic storefront is likely to result in _____ conflict between KitchenAid and its retailers.

Question

Quizplus · Accepted Answer

Vertical conflict arises when a manufacturer and its retailers compete for the same customers through different channels. In this case, KitchenAid's electronic storefront competes with its retailers as customers can now purchase products directly from the manufacturer's website. Thus, the establishment of the electronic storefront is likely to result in vertical conflict between KitchenAid and its retailers.

KitchenAid Has Established an Electronic Storefront So That Its Customers