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You own a franchise of a national chain of quick luncheon meals. The corporate office is conducting a nationwide marketing campaign introducing a $5.00 value meal option. This $5.00 value meal option severely cuts into you operating margins. Numerous complaints to the corporate office have resulted in the corporate office taking the position that "the franchisees need to be competitive and this $5.00 meal is competitive." You disagree, noting that even with an increase in store traffic, the reduction in revenue and margin produced by this value menu will result in a net loss for your store. What type of channel conflict is evident here?
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Marketing Management
Edition: 13th
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2 months ago
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This can be seen as a conflict or a difference in perception.  The corporate office (franchisor) sees the $5.00 meal as a competitive response, whereas the franchisee sees it as a "loss leader."
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