Contractual Channel Arrangement

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.

Administrative Channel Arrangement

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.

Retailer-Sponsored Channel

A form of contractual dependent channel arrangement where retailers work together to manage channel relationships.

Corporate Channel Arrangement

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.

Franchised Channel Arrangement

A form of contractual dependent channel arrangement where a central organization (franchisor) controls nearly all activities of other members (franchisee).

Channel Conflict

Refers to disagreements that arise within a channel when a channel member’s decisions affect (often negatively) the business operations of other members.

Channel Power

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.