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What might result if a manufacturer begins to sell directly to a large buffet-style restaurant rather than through traditional wholesalers?

A. Reverse distribution
B. Horizontal channel conflict
C. Exclusive distribution
D. Vertical channel conflict

1 Answer

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Final answer:

If a manufacturer sells directly to a buffet-style restaurant, bypassing wholesalers, this results in vertical channel conflict due to disagreements within the distribution levels.

Step-by-step explanation:

What might result if a manufacturer begins to sell directly to a large buffet-style restaurant rather than through traditional wholesalers? The answer to this question is D. Vertical channel conflict. When a manufacturer bypasses the traditional distribution channels, such as wholesalers, to sell directly to the end-user (in this case, the restaurant), vertical channel conflict arises. This kind of conflict occurs when there is a disagreement or competition between different levels within the same distribution channel, such as a manufacturer selling directly to the final customer which in turn can affect the relationship with the wholesalers who may feel bypassed or undercut.

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User GoinOff
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