Cause
Effect
 
 
Channel members are more concerned with their own interests
Frustration; conflict for the whole channel 
 
 
Communication difficulties
Misunderstandings; poorly coordinated strategies 
 
 
Number of intermediaries cut back
Channel efficiency reduced; distribution relationships harmed 
 
 
Channel members may be dishonest
Other members cheated 
 
 
Producers change their distribution intensity or policy
Increased sales: producer, reduced sales: retailers 
 
 
Intermediaries overemphasize competing products
Intermediary may not be equipped to handle the new products efficiently 
 

For a distribution channel to be successful, all parties must disclose fully the product features or expectations. For example, if a product feature gives a producer an advantage over competitors, the producer may want to keep this information confidential if intermediaries distribute competing products. Some channel members may want to keep their costing structures hidden from other channel members. These actions can destroy a distribution channel.