A non-binding arrangement between channel members to engage in a business relationship that allows channel members to move away from the relationship if they feel it is not in their best interest.
A type of dependent channel arrangement where a legal document obligates members to agree on how distribution occurs including identifying which activities each channel member is permitted to perform or not perform.
A type of dependent channel arrangement where a single channel member, such as a leading brand manufacturer or large retailer, has achieved a significant power position and dominates the decisions that occur within the channel.
A form of contractual dependent channel arrangement where retailers work together to manage channel relationships.
A type of dependent channel arrangement where a product provider operates its own distribution system in a manor that produces an integrated channel such as a supplier operating its own chain of retail stores.
A form of contractual dependent channel arrangement where a central organization (franchisor) controls nearly all activities of other members (franchisee).
Refers to disagreements that arise within a channel when a channel member’s decisions affect (often negatively) the business operations of other members.
Refers to the influence one party within a channel of distribution has over other channel members which may allow those with power to make demands of others.
A binding arrangement between channel members, either legally or in some other manner, to engage in a specific and often strictly outlined business relationship whose types include Corporate, Contractual and Administrative.