Term
| Marketing Channel and Environment |
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Definition
| The marketing channel is characterized not only by economic processes but by behavioral processes as well. The MC may therefore be viewed as a social system affected by such behavioral dimensions as conflict, power, role, and communications processes. |
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Term
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Definition
| Conflict versus Competition – Competition is behavior that is object-centered, indirect, and impersonal. Conflict is direct, personal, and opponent-centered behavior. |
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Term
| Causes of Channel Conflict |
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Definition
- Role Incongruities
- Resource Scarcities
- Perceptual Differences
- Expectational Differences
- Decision Domain Disagreements
- Goal Incompatibilities
- Communication Difficulties |
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Term
| Channel Conflict and Channel Efficiency |
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Definition
| The most common view is that the effects of conflict on channel performance are generally negative and even a threat to the survival of the channel. Channel Efficiency may be defined as the degree to which the total investment in the various inputs necessary to achieve a given distribution objective can be optimized in terms of outputs. (Whatever that means) |
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Term
| Managing Channel Conflict |
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Definition
Four Generalizations:
1. Conflict is an inherent behavioral dimension in the marketing channel
2. Given the numerous causes from which conflict may stem, it is a pervasive phenomenon in marketing channels
3. Conflict can affect channel efficiency
4. Various levels of conflict may have both negative and positive effects on channel efficiency, or possibly no effect. |
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Term
| Approaches for managing conflict |
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Definition
1. Detect conflict or potential conflict
2. Appraise the possible effects of conflict
3. Resolve channel conflict |
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Term
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Definition
| the ability to employ force, not its actual employment, and the ability to apply sanctions, not their actual application. |
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Term
| Power in the Marketing Channel |
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Definition
| The capacity of a particular channel member to control or influence the behavior of another channel member. |
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Term
| Bases of Power for Channel Control |
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Definition
- Reward power
- Coercive power
- Legitimate power
- Referent power
- Expert power |
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Term
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Definition
| Refers to the capacity of one channel member to reward another if the latter conforms to the influence of the former. |
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Term
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Definition
| The opposite of reward power – the expectation that the former will be able to punish the latter upon failure to conform to the former’s influence attempts. |
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Term
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Definition
| Stems from internalized norms in one channel member which dictate that another channel member has a legitimate right to influence the first, and that an obligation exists to accept that influence. In an intraorganizational system, legitimate power is pervasive and routinely accepted. |
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Term
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Definition
| When one channel member perceives his or her goals to be closely allied to, or congruent with, those of another member, a referent power base is likely to exist. |
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Term
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Definition
| When one channel member’s attempts to influence the other’s behavior is based on superior expertise |
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Term
| - Identifying the available power bases |
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Definition
| – Generally, they are a function of the size of the producer or manufacturer relative to channel members, the organization of the channel, or a particular set of circumstances surrounding the channel relationship. |
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Term
| - Selecting and Using Appropriate Power Bases |
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Definition
| – In order to use power to enhance rather than inhibit channel relationships, the channel manager needs to know how effective the various power bases are in influencing channel members to carry out the firm’s distribution objectives, what possible reactions the channel members might have to the use of different power bases, and how the use of various power bases will affect the overall channel relationship. |
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Term
| Several general inferences: |
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Definition
1. Some form of power must be exercised in order to influence channel member behavior.
2. The effectiveness of the various power bases in influencing channel member behavior is probably situation specific. Depending on the particular structure of the channel involved, the nature of the channel members, and the environmental context in which power is exercised, the effectiveness of the various power bases will vary.
3. The exercise of power as well as how it is used can affect the degree of cooperation and conflict in the channel and can affect the levels of channel member satisfaction with the channel relationship.
4. The use of coercive power appears to foster conflict and promote dissatisfaction to a greater degree than the other power bases
5. The use of coercive power, especially in contractually linked channels, can reduce the stability and viability of the channel and is likely to increase the probability that the coerced channel members will seek outside assistance to reduce the coercion. |
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Term
| Behavioral Problems in Channel Communications |
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Definition
Differing Goals
Language Differences
Perceptual Differences
Secretive Behavior
Inadequate Frequency of Communication |
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