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Conflict and Power

The document discusses the marketing channel as a social system where interactions among individuals or organizations can lead to conflict, which can negatively or positively affect channel efficiency. It outlines the causes of channel conflict, including role incongruities and communication difficulties, and emphasizes the importance of managing conflict through detection, appraisal, and resolution. Additionally, it identifies various bases of power that can influence channel control.

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p24niharikaa
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12 views11 pages

Conflict and Power

The document discusses the marketing channel as a social system where interactions among individuals or organizations can lead to conflict, which can negatively or positively affect channel efficiency. It outlines the causes of channel conflict, including role incongruities and communication difficulties, and emphasizes the importance of managing conflict through detection, appraisal, and resolution. Additionally, it identifies various bases of power that can influence channel control.

Uploaded by

p24niharikaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Behavioral Processes in

Marketing Channels
The Marketing Channel
as a Social System

• A social system can be defined as:

… the system generated by any process of interaction on sociocultural


level, between two or more actors. The actor is either a concrete
human individual (a person) or a collectivity.
The Marketing Channel
as a Social System

• When individuals or collectivities (firms/agencies) interact as


members of marketing channel, an interorganizational social system
exists.

• The channel can be affected not only by economic variables, but also
the fundamental behavioral dimensions present in all social system
such as conflict, power, role, and communication processes.
Conflict in the Marketing Channel
• Conflict exists when a member of the marketing channel perceives
that another member’s actions impede (obstruct) the attainment of
his/her goals.
Conflict versus Competition
• Competition: behavior that is object-centered, indirect, and
impersonal

• Conflict: direct, personal, and opponent-centered behavior


Causes of Channel Conflict
Seven categories of underlying causes of channel conflict:
• Role incongruities
• Resource scarcities
• Perceptual differences
• Expectational differences
• Decision domain disagreements
• Goal incompatibilities
• Communication difficulties
Channel Conflict and
Channel Efficiency

• Channel efficiency: the degree to which the total investment in the


various inputs necessary to achieve a given distribution objective can
be optimized in terms of outputs.
Channel Conflict and
Channel Efficiency
Effect of conflict on channel efficiency
• Negative effect—reduced efficiency (extra inputs i.e. time and effort
of salespeople)
• No effect—efficiency remains constant
• Positive effect—efficiency increased (2 parties reconsider the reason
of conflict and reallocation of inputs based on the comparative
advantages of each channel member for performing the distribution
tasks necessary to achieve their distribution objectives.)
Conflict and Channel Efficiency
Managing Channel Conflict
1. Detecting channel conflict
2. Appraising the effect of conflict
3. Resolving conflict
Power in the Marketing Channel
Bases of power for channel control:
• Reward power
• Coercive power
• Legitimate power
• Referent power
• Expert power

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