What type of channel conflict is likely to be caused by dual distribution and what type of conflict can be reduced by direct distribution? Why?
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Hi - Here you go!What type of channel conflict is likely to be caused by dual distribution, and what type of conflict can be reduced by direct distribution? Why? Answer:In a market with overlapping independent channels (dual distribution), multi-channel distribution is likely to cause conflict in the market. Oftentimes, different locations compete for market demand, even though the basic product or service and its price level are relatively constant across the line. Many times dual distribution is chosen because purchase experiences and preferences vary for customers, including location, product assortment, and customer service, which may influence customer's channel choices. Dual distribution allows firms to gain access to different customer segments, creating a potential for an increase in market demand and size of the market share. Also, having multiple channels of distribution at once, meaning a larger market presence, increases customer awareness and the likelihood for creating brand loyalty for existing as well as any new products that come to the market. Market segmentation conflict can be reduced by direct distribution because it helps to identify the marketing channels where customers may be unserviced, or under-serviced, in order to gain a greater share of the overall market and provide products to customers that may otherwise have a difficult time finding particular products. A focused, direct distribution strategy can help to build sustainable competitive advantage through brand loyalty and consumer confidence, as well as convenience factors for consumers.Thank you!MBAGrad-Tania