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All channels are based on the premise that anyone joining the channel and performing channel functions stands to benefit. Channel conflicts arise in channel systems when one or more channel members start perceiving the behavior and actions of another channel member as an impediment to goal attainment.
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They are primarily segregated into structural and behavioral conflict resolution strategies. Some commonly used strategies include negotiation, persuasion, problem solving, co-optation, arbitration and mediation. Channel members can also resolve conflicts by exchange of personnel between channels and by association with different trade organizations.
Channel power is also frequently used as a conflict management tool. Power sources are usually effective when wielded by channel leaders. Channel leaders can use referent, expert, legitimate, coercive and reward power to minimize channel conflicts. Creative and effective channel leadership result in channel members moving towards shared goals. If this ideal situation is achieved, distribution channels will be in a better position to satisfy the demands of target customers and maximize profits of individual channel members.
Sources of Conflict
Goal Incompatibility
Differing Perceptions of Reality
Clashes over Domains
Types of Conflicts
Pre-contractual and Post-contractual Conflicts
Channel Level Conflicts
Conflict Management Techniques
Negotiation (Bargaining)
Persuasive Mechanism
Problem-solving Strategies
Political Strategies
Co-optation
Channel Leadership
Role of Leadership Power in Resolving Conflicts