Because Each Firm in a Channel Has Its Own Objectives

question 47

Multiple Choice

Because each firm in a channel has its own objectives, ________ may threaten a distribution strategy through incompatible goals or poor communication.

• A) channel conflict
• B) channel power
• C) channel cooperation
• D) legitimate power
• E) coercive power

---

Definitions:

Power and Legitimacy

The authority and rightfulness held by an entity or individual, often in a leadership or governmental context, recognized and accepted by others.

Social Objectives

Goals that relate to achieving welfare, benefits, or positive outcomes for society or specific social groups.

Dangerous Stakeholder

A stakeholder with the potential to negatively impact an organization or project through their actions or opposition.

Power and Urgency

These are criteria in stakeholder theory that determine the level of attention stakeholders receive based on their ability to influence the organization (power) and the immediacy of their claims (urgency).