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romanna [79]
4 years ago
10

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchand

ise through Sports Discounters. Performance Inc.'s main competitor is Topnotch Manufacturers. Performance Inc. also markets its products through the company Web site. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?
A) a conflict between Performance Inc. and The Sneaker Store
B) a conflict among Performance Inc., The Sneaker Store, and Sports Discounters
C) a conflict between The Sneaker Store and Sports Discounters
D) a conflict between Performance Inc. and Sports Discounters
E) a conflict between Performance Inc. and Topnotch Manufacturers
Business
1 answer:
zvonat [6]4 years ago
4 0

Answer:

A) a conflict between Performance Inc. and The Sneaker Store

Explanation:

Vertical conflicts between distribution channels happen when companies that produce a good start to engage in distribution activities that were performed  by other companies.

In this case, Sneaker Store is a retailer that sells Performance's newest shoes, and if Performance will start offering discounts for online sales, then they will have a conflict with Sneaker unless they can provide the same discount.

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In the given scenario, the company is considering how much the advertising cost must be budgeted to drive maximum benefits which is cost benefit analysis and is economic feasibility studies.

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2 years ago
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