Chapter 4 Flashcards
Social System
Individuals or collectivities interacting within marketing channel
• Generated by any process of interaction on sociocultural level
• Between two or more actors
• Actor is individual or collectivity
Behavioral Processes
- Conflict
- Roles
- Power
- Communication
How Conflict Emerges
When a channel member perceives that another member’s actions impede the attainment of his or her goals.
Causes of Channel Conflicts
- Role Incongruities
- Resource Scarcities
- Perceptual Differences
- Differences of Expectations
- Decision Domain Disagreements
- Goal Incompatibilities
- Communication Difficulties
Negative Effects of Channel Conflicts
Channel efficiency declines
Non effective channel conflicts
Exists in channels characterized by high level of dependency among members
Positive effects of channel conflicts
Conflict might be impetus for either or both members to reappraise their policies, so Channel efficiency increases
Power in the Marketing Channel
The capacity of a particular channel member to control or influence the behavior of another channel member
Bases of Power in the Marketing Channel
- Reward
- Coercive
- Legitimate
- Referent
- Expert
Using Power in the Marketing Channel
1. Identify available power bases Bases are a function of size of: • producer or manufacturer • organization of channel • particular set of circumstances 2. Select and use appropriate power bases to better or worsen channel relationships
Roles in Marketing Channels
A set of prescriptions defining what the behavior
of a position member should be
Behavioral Problems in Channel Communications
- Differences in goals between manufacturers & their retailers
- Differences in the kinds of language they use to convey information
- Perceptual differences among members
- Secretive Behavior
- Inadequate frequency of communication
