What are the two basic types of conflicts in channels of distribution?
A. Horizontal and vertical
B. Discrepancy of quantity and assortment
C. Assorting and sorting
D. Both (B) and (C)
E. None of the above
Answer: (A) Horizontal and vertical conflicts are the two basic types of conflicts in channels of distribution. Horizontal conflicts occur between firms at the same level in the channel of distribution. Vertical conflicts occur between firms at different levels of the channel of distribution. (A) is the correct answer. Discrepancy of quantity (B) means the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers want. Discrepancy of assortment means the difference between the lines a typical producer makes and the assortment final consumers or users want. Assorting (C) means putting together a variety of products, and sorting means separating products into grades. (D) is not a correct choice because both (B) and (C) are incorrect, and (E) is not correct because (A) is the correct answer.