CLEP Marketing

Category - Pricing

Two Sports/Complex stores are offering discounted uniforms to high school students in the district. The stores are in a ______ conflict on the quantity and discount rate that would be offered in what is considered.
  1. Pricing
  2. Brand
  3. Horizontal
  4. Vertical
  5. Franchise
Explanation
Answer: C - Two Sports/Complex stores are offering discounted uniforms to high school students in the district. The stores are in a horizontal conflict on the quantity and discount rate that would be offered in what is considered. A horizontal conflict occurs between two stores of the same franchise that are in disagreement over aspects of pricing strategies. In this example, the two stores cannot agree on how much to sell to high school teams in a district and at what rate of discount. The resolution of this conflict is necessary before products are offered in the market.
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