A recent innovation by Amazon,the Vendor Flex program,seeks to lower overall transportation costs but also creates new forms of channel conflict with competitors.As a partner in the Vendor Flex program,P&G agreed to allow Amazon to build fulfillment centers within P&G's own warehouses,thus helping to eliminate some of the costs of transporting P&G's products to Amazon's fulfillment centers.Believing that the program was giving its competitor Amazon an unfair advantage,Target reacted vigorously,moving all P&G products from prominent end-cap positions in its stores to less prestigious and less visible locations.Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each category.This is an example of ____________ channel conflict.
A) horizontal
B) independent
C) conventional
D) coercive
E) vertical
Correct Answer:
Verified
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