Question

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates ________.

Answer 1

horizontal conflict

Step-by-step explanation:

A horizontal conflict is a type of distribution channel conflict between two or more companies that belong to the same distribution channel level.

In this case, both Roscoe Hardware and the other seller are both retail stores that sell their products to final consumers.

The conflict between them is caused by the extra cost that Roscoe has for carrying a stock of lawn mowers. Since the other seller doesn't have any type of lawn mower inventory, their costs are lower, therefore it can sell at a lower price. Probably the consumers go to Roscoe and decide what lawn mower they need and then go to the other seller and purchase it.