Red Chilly Productions, a production studio based in the United States, decides to make a major change in its distribution strategy. It withdraws contracts from its retail partners and beginsto operate its own rental store

This results in its retail partners filing several lawsuits against the company. This scenario is an example of _____.
a. bilateral monopoly
b. dual distribution

c. horizontal conflict
d. retailer monopoly

ANSWER: c

This scenario is an example of horizontal conflict. Horizontal conflict occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.