The correct answer is A. Expert power. Let’s explore why this is the correct answer in detail and why the other options are not appropriate:

Expert Power:

Expert power in the context of channel members, such as retailers, refers to the authority and influence that a member gains due to their superior knowledge and information about the products they sell. This knowledge can include in-depth understanding of product features, benefits, usage, and customer needs.

Retailers or channel members who possess expert power can leverage this knowledge to build trust with customers, guide their purchasing decisions, and ultimately enhance their position in the supply chain. Expert power is rooted in competence and a deep understanding of the products and services offered.

Key points about expert power:

Knowledge and Information: Expert power is based on the expert’s comprehensive knowledge and information about the products or services they are selling. This knowledge is a valuable resource that can be used to influence others, particularly customers.

Trust and Credibility: Channel members who demonstrate expertise are often viewed as credible sources of information. Customers tend to trust and rely on their recommendations, as they believe that the expert has a deep understanding of the products.

Influence on Purchasing Decisions: Retailers or channel members with expert power can play a crucial role in guiding customers’ purchasing decisions. They can provide recommendations, answer questions, and address concerns, which can significantly impact the choices customers make.

Enhanced Position in the Supply Chain: Channel members with expert power may have a stronger bargaining position within the supply chain. Suppliers may value their expertise and work to maintain a positive relationship with them.

Now, let’s explain why the other options are not correct:

B. Legitimate Power:

Legitimate power is based on a person’s or entity’s position or role within an organization or system. It implies that an individual or channel member has the right to make decisions, give orders, or influence others based on their recognized authority.

Legitimate power is not rooted in knowledge or information about products but rather in the formal structure of an organization or system. In the context of a channel member’s product knowledge, legitimate power is not relevant as it doesn’t pertain to expertise.

C. Coercion:

Coercion is a form of power that relies on the use of force or threats to make someone comply with a specific demand. It is not associated with a channel member’s knowledge or information about products. Coercion is an entirely different type of influence, focusing on the use of fear or pressure to achieve a particular outcome.

D. Retailer Power:

“Retailer power” is a general term that does not specifically refer to a type of power based on knowledge or information about products. Retailer power can be influenced by various factors, such as market share, negotiation skills, and the ability to set prices.

While retailers may leverage their knowledge of products to some extent, the term itself does not encapsulate the concept of power based on knowledge or expertise.

In summary, the correct answer is “Expert power” because it accurately describes the type of power a channel member, such as a retailer, can wield when they possess superior knowledge and information about the products they sell. This knowledge allows them to influence customer decisions and enhance their credibility within the supply chain.

The other options, including legitimate power, coercion, and retailer power, do not represent the concept of power derived from product expertise and are therefore not the correct answer to the question. Understanding these distinctions is important for individuals and organizations involved in channel marketing and supply chain management.