Question

Traditionally, Lamme's Candies have used direct sellers to distribute its products. However, it recently made the decision to allow customers to purchase candles directly from its website as well. This decision is likely to create ____________ with its independent distributors.

Answer 1

Answer:

Channel Conflict

Explanation:

Channels represents all the activities a product passes in getting from the point of production to the point of consumption. Now, a channel conflict occurs when manufacturers or producers or an organization decides to reduce or eliminate their channel partners by deciding to sell directly to their customers. Channel partners includes those involved in distributing the product produced by the producer to the consumer. Some of them are distributors, retailers, wholesalers, and so on. In this case, by creating a platform online where their customers can purchase product directly from the store, Lammes candies is disintermediating their channel partners and causing channel conflict.