The two types of channel conflict are
a. wholesaler and retailer.
b. horizontal and vertical.
c. transactional and promotional.
d. external and internal.
e. producer and consumer.
Answer:
Imagine that Eveready has developed solar rechargeable batteries that cost only slightly
more to produce than the rechargeable batteries currently available. These solar
batteries can be recharged by sunlight up to 5 times, after which they must be discarded.
Unfortunately, the production process cannot be patented, so competitors could enter
the market within a year. Which of the following would be the LEAST sound
marketing program decision?
a. Select a skimming pricing strategy to position the product as “premium.”
b. Seek widespread distribution to gain a foothold in what might be a potentially huge
market.
c. Limit production capacity until you are certain consumers will actually want the
product.
d. Avoid a connection to the Eveready brand until the product has proven itself.
e. Use multiple brand names to discourage other competitors from entering the market.