Question

Because the company was angered by the actions of its resellers. Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel?
A) legitimate power
B) coercive power
C) referent power
D) reward power
E) logistical power

Answer 1

Answer:

B) coercive power.

Explanation:

There are two ways of influencing others to follow the instruction or to get the process in the right order.Those two ways are: Reward power and coercive power.

Coercive power: It is the ability of the authority to use power or force against people or subordinates to follow the instruction or to get them disciplined. It is an act of punishment for committing errors so that it does not get repeated.

In the given case, the manufacturer decided to punish resellers for their action. As Manufacturing decided to slow down deliveries and postpone product availability to these resellers.