Manufacturers of consumer products use transactional websites less frequently than other firms because in some industries, this form of vertical integration is illegal. there is a threat of channel conflict. it is difficult to maintain inventory levels at online warehouses. some stakeholders are opposed to websites that drain resources without providing any return on investment. such websites require dynamic pricing, which is difficult to use if supply and demand conditions change frequently

Question

Dylan Williams

Business

15 December, 15:17

Manufacturers of consumer products use transactional websites less frequently than other firms because in some industries, this form of vertical integration is illegal. there is a threat of channel conflict. it is difficult to maintain inventory levels at online warehouses. some stakeholders are opposed to websites that drain resources without providing any return on investment. such websites require dynamic pricing, which is difficult to use if supply and demand conditions change frequently

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Answers (1)

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India Taylor · Answer 1

The correct answer is letter "B": there is a threat of channel conﬂict.

Explanation:

Channel conflicts arise when producers believe their operations are compromised because of unfair practices of competitors within the same channel. In such cases, manufacturers are reluctant to take part in the channels to protect their businesses and minimize risk.