The correct answer is a. dual or multiple distribution. Horizontal channel conflict typically occurs when manufacturers practice dual or multiple distribution strategies, and I will explain why this is the correct choice in detail.

Additionally, there will be an elaboration on why the other options (b. trade loading, c. promotional pricing, d. direct distribution, and e. channel distribution) are not correct in the context of horizontal channel conflict.

Why a. Dual or Multiple Distribution is the Correct Answer:

Dual or multiple distribution, also known as multi-channel distribution, refers to the practice of a manufacturer distributing its products through more than one channel or distribution network simultaneously.

For instance, a manufacturer may sell its products both through traditional retail stores and via e-commerce platforms. This approach can lead to horizontal channel conflict due to several reasons:

1. Price Competition:

When a manufacturer employs dual or multiple distribution channels, it can inadvertently create a situation where the same product is available at different prices through different channels. This price disparity can lead to conflict among channels, as retailers in one channel may feel that they are at a disadvantage compared to those in another channel.

2. Cannibalization:

Different distribution channels may compete for the same customer base, leading to cannibalization of sales. For example, a manufacturer selling its products both online and through brick-and-mortar stores may find that the online channel negatively impacts the sales of physical stores, creating tension and conflict between the channels.

3. Channel Loyalty Issues:

Channel partners, such as retailers, may become disenchanted with a manufacturer that sells its products directly to consumers through a separate channel, as this may undermine their loyalty and trust. This can result in conflict as retailers may view direct distribution as a threat to their business.

4. Inventory and Supply Chain Challenges:

Dual or multiple distribution can complicate inventory and supply chain management. Manufacturers must carefully manage inventory levels to meet demand from different channels. Failures in this regard can lead to product shortages or overstocking, frustrating channel partners and causing conflict.

Now, let’s discuss why the other options are not the correct answers for the occurrence of horizontal channel conflict:

b. Trade Loading:

Trade loading refers to the practice of encouraging retailers to purchase more inventory than they need, often through offering discounts or incentives. While trade loading can lead to issues such as excess inventory and financial strain on retailers, it is not primarily associated with horizontal channel conflict. It is more related to issues like shelf space management and inventory turnover.

c. Promotional Pricing:

Promotional pricing is the practice of temporarily lowering prices to stimulate sales. While it can create competition among retailers, it is generally a strategy that retailers are aware of and can choose to participate in. It doesn’t inherently lead to horizontal channel conflict but can cause competition among retailers for customers during promotional periods.

d. Direct Distribution:

Direct distribution is the practice of a manufacturer selling products directly to consumers, bypassing intermediaries such as retailers.

While this approach can lead to vertical channel conflict (between the manufacturer and its channel partners), it is not inherently related to horizontal channel conflict. Horizontal channel conflict typically involves disputes and competition among channel partners.

e. Channel Distribution:

The term “channel distribution” itself does not represent a specific practice but rather refers to the entire system of intermediaries, including manufacturers, wholesalers, and retailers, that products go through before reaching the end consumers. It is a broad concept and not a practice that directly leads to horizontal channel conflict.

In conclusion, horizontal channel conflict most often occurs when manufacturers practice dual or multiple distribution because it creates competitive situations and pricing disparities among different channels, leading to disputes and tensions among channel partners.

Other options mentioned may cause different types of issues but are not primarily responsible for horizontal channel conflict.