A Firm Runs the Risk of Upsetting Its Channel Partners

question 40

Multiple Choice

A firm runs the risk of upsetting its channel partners if it sells through two channels simultaneously which compete for the same customer. For example, if Electronic Arts sold its electronic games through retailers like Wal-Mart and Best Buy, and then started selling the same games online, Wal-Mart and Best Buy might get upset, because the online sales undermine their ability to sell the games through their stores. This type of situation is referred to as:

• A) channel clash
• B) marketing clash
• C) channel piracy
• D) disintermediation
• E) channel conflict

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Definitions:

Demographic Statistics

Data that relates to the structure of populations, such as age, race, gender, income, and education.

Law School

An educational institution or part of an institution that offers professional training in legal studies, preparing students to become lawyers.

Delay of Gratification

The ability to resist the temptation for an immediate reward and wait for a later, often greater, reward.

Shorthand Term

A brief, abbreviated word or phrase used as a simplified representation of a longer or more complex term.