Channel conflict is the disagreements and tensions that arise between different members of the marketing channel (manufacturers, wholesalers, retailers) regarding goals, roles, responsibilities, territories, and rewards. These conflicts are an inevitable result of the complex interdependencies in the value chain.
Conflicts can be horizontal (between members at the same level, e.g., between two franchises of the same brand) or vertical (between different levels, e.g., between a manufacturer and a retailer). Managing conflict is critical because unresolved disagreements can disrupt the efficiency of the entire distribution system and harm the end consumer.
