ABSTRACT
Conflict is an inherent aspect of channel relationships given the interdependence of the channel partners. Chapter 5 focuses on conflict in channel relationships. This chapter describes various types of conflict including latent, perceived, and felt conflict and outlines in detail how one can measure conflict in channel contexts. It analyzes the consequences of conflict including functional conflict which improves channel performance and manifest conflict which reduces channel performance. The major sources of channel conflict are discussed including competing goals, differing perceptions of reality, and intrachannel competition. The chapter outlines ways to manage conflict in omni-channel and multi-channel contexts and illustrates why multiple channels represent the norm, and describes ways to address the conflict they create. Various approaches to resolve conflicts in channels are discussed including information-intensive mechanisms, third-party mechanisms, building relational norms, and the use of economic incentives. The chapter also covers the topic of gray markets and why, despite protests to the contrary, channel members may permit them.
