Question

carson manages distribution for a gourmet coffee roaster. he discovered that one of the retailers carrying his brand has started offering deep, unauthorized discounts on the premium coffee line, undermining the manufacturers pricing strategy and angering his corporate leadership. what type of marketing channel conflict is occurring? reverse conflict horizontal conflict vertical conflict gray market conflict

Explanation:

• Reverse conflict: Not relevant as it doesn't fit the described situation.
• Horizontal conflict: Occurs between members at the same level of the marketing channel (e.g., two retailers). Here, it's a retailer (lower - level in the vertical channel) vs. the manufacturer (higher - level), so not horizontal.
• Vertical conflict: Involves members at different levels of the marketing channel. The retailer (a channel member at a lower level) is acting against the manufacturer's (a higher - level channel member) pricing strategy.
• Gray market conflict: Usually about products sold through unauthorized channels, but the key here is the conflict between different channel levels (retailer - manufacturer) rather than just an unauthorized sales channel aspect.

Answer:

Vertical conflict