Final answer:
Channel conflict is a true issue for brick-and-mortar organizations, as different sales channels like online streaming services can siphon off customers from physical stores. The rise of Netflix and the shift towards online media consumption highlight the challenges that traditional stores face. Adjustments to customer preferences are crucial for brick-and-mortar businesses to remain competitive.
Step-by-step explanation:
The statement that channel conflict is a major problem for brick-and-mortar organizations is generally true. Channel conflicts arise when different sales channels compete for the same customers, which can be problematic for traditional brick-and-mortar stores, especially in the digital age where streaming services and online retail options have significantly changed consumer behavior.
For instance, brick-and-mortar video rental stores faced significant competition from online streaming services like Netflix. These stores had to compete not only with the convenience of online streaming but also with exclusive content rights and the shift in consumer preferences towards digital media over physical DVDs. Such conflicts can lead to a loss in sales for physical stores as customers increasingly choose more convenient and often cheaper online options.
However, some advocate for a transition back into physical media, arguing for the possibility of offering better prices and more media in one place, implying that understanding and adapting to customer preferences is critical. While streaming services like Netflix experienced moments of skepticism, they may have the last laugh as the inclination towards online media grows with the population.