The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize it
s sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a(n) ________ channel conflict
Vertical Conflict occurs when there is a conflict between different stages of marketing channel members .
For example a conflict can occur between a retailer and manufacturer or wholesaler and manufacturer.
It occurs when members from two channels can't seem to get along or agree on something and they may tend to work against each other than together. For example if a manufacturer of crayons realises that their product doesn't get into retail in time , this will raise a conflict between a manufacturer and a wholesaler who is responsible for taking their products to the retail shop.
Stanley company is likely a manufacturer while Home depot is a wholesaler and there is a conflict because they want to carry all the tools to maximise sales in their own category whilst Stanley company want them to carry only their tools not that of competitors.
Based on the information provided within the question it can be said that the statement that is being made is completely true. Deadweight loss is a cost to society that has arisen due to market innefficiency and occurs when the supply and demand of an economy are out of equilibrium. This term can be used anywhere that there is an inefficient allocation of resources.
