Deck 14: Evaluating Channel Member Performance

Question 1

Which of the following is a false statement about the Deere & Company and its independent dealers?

A) John has nearly 3000 independent dealers.
B) John Deere's new CEO, Robert Lane, says its dealers are part of the Deere family and can never be replaced.
C) Dealers need to achieve targeted levels of sales.
D) John Deere dealers are needed to proved technical service to their customers.
E) The Dealers are part of the logistical programs to provide parts to John Deere customers.

Answer 1

B

Question 2

The degree of control the manufacturer has over its channel members plays __________ in determining the scope and frequency of its evaluation of channel members.

A) a major role
B) a very little role
C) no role at all
D) the most important role
E) the least important role

Answer 2

A

Question 3

Channel member performance audits:

A) Should be conducted for all channel members at all levels at the same time.
B) Should be conducted for all channel members at one level at the same time.
C) Should be done for all wholesalers or retailers of the same type at the same time.
D) Should be conducted for only one channel member at a time.
E) Should be periodic and comprehensive.

Answer 3

E

Question 4

Generally,the greater the degree of control the manufacturer has over the channel member:

A) The more difficult it is to obtain performance data.
B) The easier it is to obtain performance data.
C) The less accurate are the performance data.
D) The less complete are the performance data.
E) The more comprehensive the data and analysis.

Question 5

When a manufacturer thoroughly evaluates only those channel members whose sales figures are unusually out of line,it is using:

A) Marginal evaluation.
B) Evaluation by exception.
C) Comparative evaluation procedures.
D) Outlier evaluation.
E) High variance evaluation.

Question 6

What type of appraisal does a channel manager conduct to assist in maintaining current operating control of channel members' efforts to sell the manufacturer's products?

A) Sales analysis accounting
B) Day-to-day monitoring
C) Channel member performance audit
D) Comprehensive evaluation
E) Standard output assessment

Question 7

Generally,the less intense is distribution at the various channel levels:

A) The more thorough are channel member evaluations.
B) The less thorough are channel member evaluations.
C) The more difficult are channel member evaluations.
D) The more routine are channel member evaluations.
E) The less informative are channel member evaluations.

Question 8

According to the text,the evaluation of channel member performance is:

A) Of less importance than employee evaluation.
B) More important than employee evaluation.
C) Of equal importance to employee evaluation.
D) Easier to do than employee evaluation.
E) Done far more frequently than employee evaluation.

Question 9

For the manufacturer who sells all of its output through intermediaries,the evaluation of its channel members is likely to be __________ than for those manufacturers who rely less on intermediaries.

A) much more comprehensive
B) much less comprehensive
C) much quicker
D) of much less importance
E) less of a strategic issue

Question 10

The channel member audit that is primarily based on sales criteria is called:

A) Focused monitoring.
B) A performance audit.
C) Day-to-day monitoring.
D) A sales audit.
E) Specific audit.

Question 11

Retailers can be unwilling to voluntarily provide manufacturers with data on sales to their customers because:

A) They may not view the manufacturer's brand of products as of great importance to them.
B) Withholding information increases their power in the channel.
C) They fear competitive exposure.
D) The information is proprietary.
E) The data may reveal a company's trade secrets.

Question 12

Generally,the more complex the product,the __________ the scope of channel member evaluations.

A) narrower
B) broader
C) less important
D) more limited
E) more technical

Question 13

Manufacturers can obtain detailed sales data from channel members more readily if they have:

A) A weak market position.
B) A contractual agreement.
C) EDI.
D) A computer network linking all channel members.
E) A manager with a referent power base.

Question 14

According to Spriggs,which of the following is not a criterion for measuring channel member performance?

A) Selling capabilities
B) Sales performance
C) Attitudes
D) Inventory maintained
E) Number of customer complaints

Question 15

A channel member performance audit may be described as:

A) A careful day-to-day monitoring of channel member performance.
B) A regular and thorough evaluation of the channel members' financial status.
C) A periodic and in-depth analysis of a channel member's sales data.
D) A periodic and comprehensive review of channel member performance.
E) A basic phase of channel design.

Question 16

Manufacturers are more likely to scrutinize channel member performance if their products:

A) Require a high degree of post-sale service.
B) Have a low unit value.
C) Have a high market share.
D) Low after sales servicing.
E) High volume.

Question 17

A channel member's sales performance usually is compared to all of the following except:

A) That channel member's prior sales.
B) Industry sales.
C) The manufacturer's assigned sales quota.
D) Other channel members' sales.
E) Other channel members' quota attainments.

Question 18

The channel manager should evaluate channel member sales data in terms of all of the following except:

A) The channel member's current sales to historical sales.
B) Cross comparisons of a channel member's sales with other channel members' sales.
C) The channel member's sales with predetermined quotas if quotas were assigned).
D) The volume of product each salesperson is selling.
E) This year's sales with last year's sales.

Question 19

Which of the following is not a factor affecting the scope and frequency of channel member evaluations?

A) The level of expertise of the channel managers
B) Relative importance of channel members
C) Degree of manufacturer's control over the channel members
D) Nature of the product
E) Number of channel members

Question 20

According to a study by Spriggs,the two categories of performance measures to audit channel members are:

A) Financially based and sales based.
B) Psychologically based and numbers based.
C) Logically based and analytically based.
D) Outcome based and behavior based.
E) Volume based and service based.

Question 21

If a channel member fails to meet minimum performance standards,the channel manager should:

A) Terminate the channel member.
B) Analyze the channel member's needs and problems.
C) Put the channel member on probationary status with a specific deadline for improved performance.
D) Reduce the channel member's available discounts.
E) Increase the channel member's available discounts and other motivational programs.

Question 22

One frequently cited ratio is that about __________ percent of the channel members account for about __________ percent of sales.

A) 80; 20
B) 30; 70
C) 70; 30
D) 40; 60
E) 20; 80

Question 23

If the quota attainment ratio is low for the majority of channel members,the problem is likely to be:

A) Poor selection of channel members.
B) A low level of selling effort by the channel members.
C) Too many channel members.
D) Unrealistically high quotas.
E) A poorly designed channel.

Question 24

Which of the following is not a usual question for evaluating channel member growth prospects?

A) Has the channel member's performance been in keeping with the general level of business activity in his territory?
B) Does the channel member have the adaptability and the overall capacity to meet market expansions that may occur in his territory?
C) Does the channel member's past performance indicate that his sales of the manufacturer's products are likely to keep pace with those projected for his region, district, or trade area?
D) What is the total level of the channel member's current inventory?
E) Is the channel member's firm growing or improving in areas of inventory maintenance and quality of lines represented?

Question 25

In order to spot negative channel member attitudes before they affect performance,attitudes should be:

A) Evaluated when poor channel member sales are found.
B) Evaluated independently of sales data.
C) Given more weight than basic sales data.
D) Made the most important criterion of channel member performance.
E) Always evaluated whenever sales data are evaluated.

Question 26

All of the following are appropriate methods to evaluate channel member performance in the context of the channel member's competition except:

A) Existing intermediaries in the same trade area.
B) Expected growth rates of the industry.
C) New intermediaries in the same trading area.
D) Other product lines carried by the channel member.
E) The support of the channel member for the manufacturer's products.

Question 27

Which of the following should not be used to assess channel member attitudes?

A) Research studies by the manufacturer
B) Outside research agencies
C) Channel audits
D) Distributor advisory councils
E) Surveys of company CEOs

Question 28

A major disadvantage of a separate performance evaluation is that:

A) It is the most complex to perform.
B) It takes a long time to perform.
C) It offers little insight into overall channel member performance.
D) It is difficult to analyze.
E) Is useful when channel members are small.

Question 29

A manufacturer dealing with a small number of channel members at the wholesale level likely uses _________ to check its channel members' inventory levels.

A) A.C. Nielsen Company
B) its own sales force
C) Information Resources, Inc.
D) its inventory control team
E) channel manager

Question 30

A channel member's inventory should be evaluated based on all of the following except:

A) The condition of the inventory.
B) The display method used for the inventory.
C) The units of inventory.
D) The dollar value of the inventory.
E) The age of the inventory.

Question 31

When multiple criteria are combined formally:

A) Weights are not assigned to each criterion to reflect its relative importance.
B) Criteria and associated operational measures are made explicit.
C) A qualitative index of overall performance is produced.
D) It is easy to make performance comparisons among channel members.
E) It increases the complexity of the evaluation.

Question 32

Issues associated with a social satisfaction evaluation of channel members include all of the following except:

A) The working relationship between my firm and the supplier is hostile.
B) The supplier will not explain the reasons for its policies.
C) The supplier provides my firm with marketing and selling support of high quality.
D) The supplier expresses criticism tactfully.
E) The relationship between my firm and the supplier is respectful.

Question 33

A manufacturer should ask questions about all of the following topics in evaluating a channel member's inventory performance except:

A) How effective is the channel member's inventory control manager.
B) Shelf or floor space dedicated to competitors' products.
C) The adequacy of the channel member's inventory control and recordkeeping system.
D) Shelf or floor space dedicated to the manufacturer's products.
E) The condition of the inventory.

Question 34

Evaluating channel members using separate performance evaluations:

A) Is simple and fast.
B) Is most disliked by the channel members themselves.
C) Offers little insight into overall performance.
D) All of the above.
E) Only a and c above.

Question 35

All of the following are times when a channel manager may want to evaluate a channel member's reputation except:

A) When there is new ownership of the channel member.
B) When the channel member has had major developments that might affect its sales.
C) Before channel members are selected.
D) When there is a change in the channel member's location.
E) When there are changes in operating policies.

Question 36

Separate performance evaluations measure channel member performance against one or more criteria when:

A) The number of channel members is very large.
B) Selective distribution is used.
C) Exclusive distribution is used.
D) The number of channel members is very small.
E) An overall picture of channel member performance is easy to obtain.

Question 37

When multiple criteria are combined informally to evaluate channel member performance:

A) Overall performance ratings are always accurate.
B) Cross comparisons among channel members are not valid.
C) A quantitative index of overall performance is produced.
D) It is difficult to administer and evaluate.
E) It is not possible to assign weights to criteria.

Question 38

A channel manager evaluates a wholesaler's sales force to assess the wholesaler's:

A) Personnel policies.
B) Selling capacity.
C) Veracity.
D) Sales performance.
E) Incentive policies.

Question 39

All of the following are good means for the manufacturer to evaluate a wholesaler's sales force except:

A) Attendance at manufacturer sponsored training programs.
B) Reports from the channel member's customers.
C) The number of sales made by each sales rep.
D) Opinions of the manufacturer's field sales force.
E) The number of sales reps.

Question 40

A new criterion being considered useful in evaluating channel members is:

A) Channel member satisfaction.
B) Channel member economic satisfaction.
C) Channel member behavior.
D) Channel member psychological capability.
E) Channel member dedication.

Question 41

If a channel member is not meeting performance standards,the channel manager should:

A) Fire the channel member immediately.
B) Evaluate the evaluation process and criteria.
C) Make an effort to learn about the needs and problems of the channel member.
D) Put the channel member on probation.
E) Demand the channel member make immediate changes in order to improve.