Final answer:
If a manufacturer begins to sell directly to large businesses instead of using traditional wholesalers, it can result in vertical channel conflict. Option (C) is correct.
Step-by-step explanation:
If a manufacturer begins to sell directly to large businesses rather than through traditional wholesalers, it may result in vertical channel conflict. Vertical channel conflict occurs when there is discord or disagreement between the manufacturer and its traditional channel partners, such as wholesalers or retailers.
In this case, the traditional wholesalers may feel threatened or excluded by the manufacturer's decision to sell directly to large businesses. This can lead to conflicts over distribution rights, pricing, or other aspects of the channel relationship.
For example, if a clothing manufacturer decides to bypass its usual wholesalers and sell directly to department stores, the wholesalers may feel that their role is being diminished or that they are losing out on potential business. This can create tension and conflict within the channel.
Vertical channel conflict is a type of conflict between members of different levels within the same marketing channel. Channel members of higher levels conflict or disagree with lower-level members or vice versa, competing for the same resources or customers.