What does channel conflict refer to in a marketing context?

Channel conflict in a marketing context refers specifically to disagreements that arise among the various members of a marketing channel. These members can include manufacturers, wholesalers, retailers, and even distributors. Such conflicts can occur when one channel member perceives that another is undermining their efforts, competing inappropriately, or failing to uphold agreements regarding pricing, product placement, or territory.

For example, if a manufacturer sells directly to consumers while also supplying products to retailers, the retailers may feel threatened and engage in conflict with the manufacturer due to perceived inequities in competition. Understanding channel conflict is crucial for businesses as it can impact relationships, sales strategies, and ultimately, customer satisfaction.