DECA Marketing Cluster Practice Exam

What does vertical conflict typically involve?

1. Competition between retailers

2. A disagreement among different distributors

3. Issues between manufacturers and wholesalers

4. Negotiations over consumer preferences

The correct answer is: Issues between manufacturers and wholesalers

Vertical conflict typically involves issues between manufacturers and wholesalers. This type of conflict arises within a supply chain, where different levels of the distribution channel may have competing interests or disagreements about pricing, product distribution, or marketing strategies. For example, a manufacturer may want to set a high retail price to maintain brand prestige, while a wholesaler might insist on lower prices to ensure better sales to retailers. Such disagreements can lead to tension and conflict that disrupt the flow of goods and affect relationships within the channel. Understanding vertical conflict is essential for companies to develop strategies that promote cooperation and align interests across the supply chain.