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29 July, 05:00

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

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  1. 29 July, 07:19
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    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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