Barnes & 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 & 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 situation represents horizontal conflict, which occurs between firms that are in the same industry and are competing for the same customers. In this case, Barnes & Noble and Amazon.com are both book retailers and are competing for customers who want to purchase Dan Brown's book. The conflict is driven by price competition and differences in operating costs, which allows Amazon.com to offer a lower price.

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