What is channel conflict? What are possible outcomes from channel conflict? How do vertical ...

Channel conflict occurs when members of the distribution channel disagree over the roles they should play or the rewards they should receive. If certain channel members are given preferential treatment or more power, other members may get upset and channel conflict ensues. If channel members become frustrated, they switch dealers. Vertical marketing systems are designed to overcome the problems of channel conflict by forming the independent business units in the channel into a unified group, with one member coordinating the activities of all the channel members.