Barnes and Noble, a multichannel book shop, discovers that Amazon.com is selling a new blockbuster book by Dan Brown at a 25 percent discount over Barnes and Noble's in-store price-because Amazon.com has a lower overhead cost. This is an example of _________ conflict.
A) vertical
B) traditional
C) horizontal
D) administered
E) contractual

Question

Quizplus · Accepted Answer

This is an example of horizontal conflict, which occurs between firms at the same level of the distribution channel, in this case, two retailers (Amazon.com and Barnes and Noble) competing on price for the same product.

Barnes and Noble, a Multichannel Book Shop, Discovers That Amazon