Exercised power The actual alteration of a channel members behavior Channel

Exercised power the actual alteration of a channel

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Exercised power: The actual alteration of a channel member’s behavior.
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Channel power forms : Coercive power. Noncoercive power.
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Coercive Power : Based on the ability of one channel member to punish another channel. Opposite of reward power also called threat power.
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Examples of Coercive Power : A manufacturer can threaten to discontinue selling to a retailer who has a bad customer service record. A franchisor can cancel a franchise, if franchisee buys from independent sources of supply. A powerful retailer may stop displaying a brand if it is not supported by frequent discounts.
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Coercion may backfires : The threatened party may take legal action. Forms associations to counterbalance other channel member’s power. Threats may help magnify channel conflict. Fear, anxiety, and resistance are typical responses to threats.
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Noncoercive Power include : Reward power. Referent power. Expertise power. Persuasion power. Legitimate power; and Information power.
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Reward power : Channel members who comply are rewarded. Called promise power. Examples.
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Reward may also backfire : May prove to be ineffective. The reward may be perceived as a bribe. May suggest that performance is inadequate.
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Referent power : Based on the desire of a channel member to identify with another.
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