Question

Vibgyor Phones Inc., a cell phone manufacturer, expects its retailers not to sell other brands of cell phones in their stores. However, most retailers disagree with this, arguing that their profitability is reduced when they carry only one brand. Such conflicts are referred to as ______ conflicts.

A) nonlinear
B) horizontal
c) vertical
d) spiral
e) circular

Answer 1

The conflicts between Vibgyor Phones Inc. and their retailers can be classified as vertical conflicts. These conflicts arise when there is a disagreement between different levels of a distribution channel, such as manufacturers and retailers.

Step-by-step explanation:

The conflicts between Vibgyor Phones Inc. and their retailers, who disagree with the company's expectation to only sell Vibgyor phones in their stores, can be classified as vertical conflicts. Vertical conflicts occur between different levels of a distribution channel, such as manufacturers and retailers.

In this case, the conflict arises due to a disagreement between the manufacturer (Vibgyor Phones Inc.) and the retailers over the brand selection policy. Retailers argue that carrying only one brand reduces their profitability, while the manufacturer wants to maintain exclusive brand presence in the stores.

Examples of vertical conflicts are common in many industries, where manufacturers set specific requirements or expectations for their retailers, and conflicts arise when the retailers have different interests or preferences. These conflicts can impact the distribution channel and require negotiation and compromise to be resolved.