Channel Conflict Often Results When a Manufacturer Opens a New

question 267

True/False

Channel conflict often results when a manufacturer opens a new distribution channel, especially if it directly competes with its existing intermediaries.

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Definitions:

Short-Term Shortage

A temporary situation where the demand for a product or service exceeds its supply in the market.

Market Mechanisms

The processes through which the prices of goods and services are established in markets, enabling resources to be allocated efficiently.

Tax Incentives

Financial discounts or reductions offered by governments to encourage certain behaviors or investments among taxpayers.

Subsidize Production

Financial assistance given by a government to support the production of goods or services.