Name 3 potentially positive effects of conflict
Improves quality of decision Stimulates involvement in discussion Builds group cohesion
Channel conflict (definition)
"Channel conflict is behaviour by a channel member that is in opposition to its channel counterpart. It is opponent centered and direct, in which the goal or object sought is controlled by the counterpart."
Which channel members are involved in a conflict when spoken of a "Vertical conflict"?
Manufacturer against distributor or wholesaler
Which channel members are in conflict when spoken of "horizontal conflict"?
Direct sales force versus dealer or distributor One third-party distribution channel versus another Extensive intra-channel competition (too many authorized/unauthorized dealers or distributors)
Name 3 Profit threats surging from horizontal conflicts
Sales cannibalization Margin dilution (highly distributed branded product becomes a "traffic builder", low priced in hope to attract customers to purchase other merchandise at higher margin) Customer diversion (Complex product is offered by category killers, neglecting in-store service but offer low prices --> compete with specialized retailers who focus on service)
Difference of Conflict and Competition
Conflict : Behaviour is : opponent-centered direct personal Competition Behaviour is : objecet-centered indirect impersonal
Name the 4 types of conflict
1. Latent conflict Exists at such a low level that channel members do not fully sense it Conditions are right for contentions, but organization is unaware of it (perception is missing) 2. Perceived conflict ( normal states in marketing channels ) Channel member senses that opposition of some sort exists Cognitive (emotionless, mental) 3. Felt/affective conflict Perception of conflict Experience of destructive emotions 4. Manifest conflict ( escalating destructive conflicts) Occurs if felt conflict is not managed visible opposition (expressed in behaviour) Behaviour which blocks another's goal achievement
How do you measure the level of conflict?
Level of conflict = Σ ( importancei x frequencyi x intensityi )
How do you measure channel conflict?
1) Counting up issues 2) importance 3) frequency of disagreement 4) intensity of dispute
What are sources of conflict?
Competing goals Perceptual differences Expectational differences Communication difficulties Clashes over domains Cultural differences
Culture (definition)
"Culture is the homogeneity of characteristics that separates one human group from another" (values, beliefs, customs)
Name the Dimensions of culture
Power distance Individualism/collectivism Masculinity/feminity Uncertainty avoidance Long-term orientation/short-term orientation
What is Power distance?
Extent to which the less powerful person in a society accepts inequality in power and considers it as normal
What is Invidiualism/Collectivism?
Individualism : individuals look primarily after their own interests and the interests of their immediate family. Collectivisim : individuals belong close "in-group" from which they cannot detach themselves (premant loyalty)
What is Masculinity/Feminity?
Masculinity : cultural values stress material success and assertiveness Feminity : cultures stress quality of life, interpersonal relationship and concern for the weak
What is "Uncertainty avoidance"?
Defines the extent, to which people within a culture are made nervous by situations that they consider to be unstructured, unclear or unpredictable Extent to which they try to avoid such situations
What is "Long-term orientation / Short-term orientation"?
Extent to which a society exhibits a pragmatic, future oriented perspective rather than a conventional historic or short-term perspective.
What are 3 possible effects of channel conflict?
1) Negative (dysfunctional) 2) Neutral 3) Positive (functional)
Name effects of dysfunctional conflicts.
Increase of perceived, felt and manifest conflict Fruststration High level of tension Disagreement Decrease of satisfaction Decrease of trust and solidarity --> Relationships between channel members and performance damaged
Name possible effects of functional conflicts.
Parties : communicate more frequently and efficiently establish outlets for expressing their grievances critically review their past actions devise and implement a more equitable split of system resources develop a more balanced distribution of power in their relationship develop standardized ways to deal with future conflict and keep it within bounds --> Motivation to improve performance and to release old habits and assumptions
Name the possible outcomes of a Conflict-Resolution Grid
Accomodation (Low assertiveness, high cooperativeness) Avoidance (Low assertiveness, low cooperativeness) Collaboration or Problem Solving (High assertiveness, High cooperativeness) Competition or Aggression (Low cooperativeness, high assertiveness) Compromise (Right in the middle)
