Horizontal channel conflict can arise for a variety of reasons. An example would be a toy manufacturer selling its toys through toy stores, discount stores, department stores, and even drugstores. Which factor cited below contributes to horizontal channel conflict?

a. Undifferentiated products and variable prices in the various channels

b. Special bundles offered only to toy specialty stores

c. Vertical marketing systems

d. Delayed availability of the product in competing channels

The correct answer is letter "A": Undifferentiated products and variable prices in the various channels.

Explanation:

In Marketing, distribution channels represent the flow of products from the first line (manufacturer) to the second line (wholesaler). The second line will be later in charge of distributing the products horizontally or vertically to the third, fourth, and final line.

Horizontal channels are those where channel members are at the same level. Their conflicts usually come from dealing with similar products at different prices or the entry of a new line in the market. The first line must always intervene in front of these issues to avoid major risks.

a. Undifferentiated products and variable prices in the various channels.

Explanation:

Horizontal Channel Conflicts arises when there is disagreement between two or more members of the channel. If the toy manufacturer sells toys to toy store and department stores, a possible reason for disagreement could be on variable price among the two channels.