What is a potential consequence of poor channel management?

Poor channel management can lead to decreased customer satisfaction because it directly affects how products are delivered and experienced by consumers. When a business fails to effectively manage its distribution channels, it may result in delays, inconsistencies in product availability, or poor service levels. Customers rely on efficient channels to receive their products on time and in good condition. If their expectations are not met due to these mismanagement issues, they may become frustrated, leading to dissatisfaction.

While options like higher employee morale, increased brand loyalty, and lower operational costs are generally positive outcomes, they are less likely to arise from poor channel management. In fact, companies with ineffective channel strategies may see a decline in employee morale as frustrations grow over unmet customer expectations and operational inefficiencies, which can, in turn, impact brand loyalty negatively and increase costs due to the need for corrective actions.