Deck 11: Managing Channel Conflict

Question 1

Which type of channel conflict typically exists at a very low level in most marketing channels?

A) functional
B) latent
C) affective
D) manifest
E) perceived

Answer 1

B

Question 2

QUIK,an athletic shoe supplier,is experiencing channel conflict with one of its main retailers,Savvy Shoes.QUIK wants Savvy Shoes to increase inventory and promote the product line more.In contrast,Savvy Shoes wants to decrease inventory holding costs and reduce promotion expenses.What is the most likely source of this conflict?

A) incompatible profit structures
B) different perceptions of reality
C) unclear channel domains
D) competing goals
E) divergent styles

Answer 2

D

Question 3

All of the following environments can support multiple channels without increasing conflict to ruinous levels EXCEPT________.

A) markets that are growing
B) markets not dominated by buying groups
C) markets in which customers perceive the product category as differentiated
D) markets that facilitate free riding among high-value business-to-business customers
E) markets in which buyers' consistent purchasing styles involve one type of channel member

Answer 3

D

Question 4

According to the author,what is the most complex source of channel conflict?

A) incompatible organizations
B) perceptions of reality
C) perceived domains
D) competing goals
E) resolution styles

Question 5

Why has the use of multiple channels become increasingly common?

A) Technological advances make it possible to manage complex channel structures.
B) Downstream channel members are motivated to represent a supplier's products.
C) More channels decrease market penetration levels and lower entry barriers.
D) Interconnected markets make it more difficult to serve customers efficiently.
E) Decreased competition has driven suppliers to shrink their channels.

Question 6

Channel conflict is best described as ________.

A) an unwanted state of opposition among organizations in a marketing channel
B) costly actions that should be viewed negatively in a marketing channel system
C) antagonistic situations that weaken relationships between marketing channel members
D) a situation that involves a struggle against obstacles in the marketing channel environment
E) behavior by a channel member that is in opposition to the wishes of its channel counterpart

Question 7

What action would most likely cause latent conflicts to disappear in a marketing channel?

A) restructuring the channel
B) engaging in differential pricing
C) ignoring other channel members
D) blocking channel member's initiatives
E) working more closely with manufacturers

Question 8

All of the following are factors necessary to determine an index of manifest conflict EXCEPT the ________.

A) number of issues
B) intensity of disagreements
C) importance of each issue
D) frequency of disagreements
E) validity of disagreements

Question 9

Which issue would most likely be addressed by agency theory?

A) goal conflict
B) domain sources
C) channel miscommunication
D) institutionalized mechanisms
E) product market subdimensions

Question 10

Which type of conflict most likely involves opposition that makes the channel arrangement better?

A) functional
B) latent
C) affective
D) manifest
E) perceived

Question 11

Which term refers to using more than one route to get to the same market?

A) cooptation
B) domain growth
C) multiple channels
D) hybrid marketing
E) intrachannel competition

Question 12

What has been the source of functional conflict in the plumbing and heating supplies industry?

A) poor market coverage
B) manufacturing delays
C) gray market products
D) co-op advertising funds
E) costly industrialized mechanisms

Question 13

A marketing channel is most likely experiencing manifest conflict when channel members ________.

A) express personal outrage at their partners
B) experience minimal frustration
C) fail to recognize any problems
D) block each other's initiatives
E) feel unfairly treated

Question 14

ABC Manufacturing is experiencing channel conflict with one of its main retailers,EZ-Tools.ABC is focused on improving manufacturing processes,while EZ-Tools is focused on meeting customer needs and demands.What would most likely improve the situation between the channel members?

A) streamlined production efforts
B) frequent communication
C) intrachannel competition
D) increased promotions
E) intensive distribution

Question 15

Which type of channel conflict most likely arises as soon as a channel member recognizes any type of opposition?

A) functional
B) latent
C) affective
D) manifest
E) perceived

Question 16

What is the LEAST likely result of functional conflict in a marketing channel system?

A) equitable split of system resources
B) balanced distribution of channel power
C) standardized methods for handling conflict
D) established outlets for expressing grievances
E) infrequent communication between members

Question 17

ABC Manufacturing is experiencing channel conflict with one of its main retailers,EZ-Tools.ABC is focused on improving manufacturing processes,while EZ-Tools is focused on meeting customer needs and demands.What is the most likely source of conflict between these two firms?

A) different perceptions of reality
B) unclear market subdimensions
C) conflicting communication styles
D) unique marketing strategies
E) clashing financial goals

Question 18

According to research,what is the most likely result of constantly high levels of manifest conflict?

A) more input from disputatious channel members
B) reduced value and satisfaction from the channel
C) increased levels of trust between channel members
D) enhanced desires to improve channel performance
E) decreased levels of perceived and latent conflict

Question 19

In order to provide high coverage and lower prices,Z-Mart,a national supercenter,sells digital cameras made by many manufacturers,including Sony,Nikon,and Panasonic.Nikon has recently accused Z-Mart of failing to meet its responsibilities.Which of the following most likely triggered this conflict?

A) poor communication
B) dual distribution
C) multiple channels
D) hybrid distribution
E) intrachannel competition

Question 20

________ conflict takes place when negative emotions first arise,and organizational members begin to personalize their differences with other channel members.

A) Functional
B) Latent
C) Affective
D) Manifest
E) Perceived

Question 21

In alliance channels,flexibility,information exchange,and solidarity are best known as ________.

A) mutual reciprocation techniques
B) conflict resolution styles
C) noncoercive tactics
D) relational norms
E) channel domains

Question 22

How does a supplier LEAST likely benefit from multiple channels?

A) building primary demand for a product category
B) raising entry barriers to potential competitors
C) providing better market coverage
D) serving customers more efficiently
E) increasing distribution intensity

Question 23

Which conflict resolution style involves high assertiveness and low cooperativeness?

A) problem-solving
B) avoidance
C) competition
D) accommodation
E) compromise

Question 24

Which passive conflict resolution style is most likely exhibited by a channel member that agrees to anything and minimizes information exchanges?

A) problem-solving
B) avoidance
C) competition
D) accommodation
E) compromise

Question 25

What is the most likely reason that channel partners would agree to joint membership in a trade association?

A) promote the product line
B) prevent and contain conflict
C) comply with federal regulations
D) identify and resolve a manifest conflict
E) appeal a binding resolution from a dealer council

Question 26

Gray marketing is most common for ________.

A) products that require service
B) outsourced products
C) manufacturing inputs
D) mature products
E) counterfeit goods

Question 27

Which term refers to the sale of authorized,branded products through unauthorized distribution channels?

A) niche marketing
B) gray marketing
C) black marketing
D) differential pricing
E) counterfeiting

Question 28

Which statement about threats is most likely FALSE?

A) Threats tend to increase channel conflict.
B) The use of threats is typically perceived as coercion.
C) Using threats is likely to reduce channel members' satisfaction.
D) A channel member with minimal punitive capabilities tends to make threats.
E) A dominant channel member is more likely to threaten a weaker channel member.

Question 29

How do suppliers most likely benefit from gray markets?

A) introduction of new product lines
B) development of brand image
C) formation of joint partnerships
D) reduction of channel conflicts
E) access to different segments

Question 30

What institutionalized mechanism uses channel member representatives to establish routine,reliable channels for moving information,aid,and requests?

A) cooptation
B) arbitration
C) dealer councils
D) personnel exchanges
E) trade association memberships

Question 31

Jared,a channel manager with T&H Enterprises,participated in a personnel exchange with a T&H channel member.Which of the following did Jared LEAST likely do during the personnel exchange?

A) devise conflict resolutions
B) gain valuable job training
C) disclose proprietary information
D) interact with his channel counterparts
E) develop professional relationships in the channel

Question 32

What is the most likely purpose of dealer councils?

A) monitoring channel member flexibility and cooperation
B) establishing standards for engaging in gray marketing activities
C) identifying destructive actions taken by dealers towards suppliers
D) facilitating communication between dealers and suppliers that are in conflict
E) instituting an appeals process for suppliers that are in manifest conflicts with dealers

Question 33

Cobalt Manufacturing,which uses multiple channels to sell electronic components,is experiencing channel conflict with retailers.How should Cobalt most likely address this problem?

A) terminate retailers who use too many discounts
B) develop different pricing schemes for every retailer
C) supply differentiated product lines to different groups of retailers
D) sell more products through e-commerce than brick-and-mortar retailers
E) increase the use of social media in promoting the product line and brand name

Question 34

Which statement about mediation is most likely true?

A) A third party makes a binding decision.
B) The mediator engages in extensive fact finding.
C) Participants typically view the overall process as fair.
D) Disputing parties have very little control of the outcome.
E) Settlement rates are typically very low in business settings.

Question 35

When using ________,conflicting parties are required by law to submit their dispute to a third party,whose decision is final and binding.

A) cooptation
B) mediation
C) reciprocation
D) voluntary arbitration
E) compulsory arbitration

Question 36

In order for economic incentives to resolve conflicts,they must be used in conjunction with ________.

A) straight commissions
B) vertical integration
C) technological support
D) effective communication
E) cooptation activities

Question 37

What is the most likely result of using a competition conflict resolution strategy?

A) lengthening channel distribution
B) improving channel solidarity
C) enhancing cooperation
D) increasing distrust
E) lowering costs

Question 38

What risk does a supplier most likely take by using multiple channels?

A) decreasing domain conflicts among channel members
B) demotivating downstream channel members
C) increasing product line depth and expenses
D) minimizing market coverage
E) decreasing primary demand

Question 39

According to the text,a dealer that believes a supplier has engaged in destructive actions because of a changing market will most likely respond by ________.

A) withdrawing from the relationship
B) threaten to stop selling the line
C) accepting the situation passively
D) neglecting the supplier
E) trying to fix the situation

Question 40

Which of the following is most likely a characteristic of balanced marketing channels?

A) heavy reliance on noncoercive strategies
B) high number of manifest conflicts
C) reliance on gray marketing efforts
D) total absence of disputes
E) conflict of goals

Question 41

Arbitration and mediation are third-party mechanisms intended to prevent and resolve conflicts among channel members.

Question 42

What does it mean to use multiple channels? What problems arise from using multiple channels? In what types of markets are multiple channels unlikely to cause conflict?

Question 43

What is gray marketing? What factors have contributed to the growth of gray markets?

Question 44

Discuss the characteristics of three different conflict resolution styles.

Question 45

As with personal relationships,conflict within a marketing channel system is undesirable and a situation that should be avoided.

Question 46

Gray marketing involves selling fake goods as branded ones.

Question 47

Members of a channel characterized by functional conflict most likely work through their differences in order to improve channel performance.

Question 48

Competing goals,differing perceptions of reality,and domain conflicts are major sources of conflict in marketing channel systems.

Question 49

What information is needed to calculate an index of manifest conflict? What can be learned by this calculation?

Question 50

What are the characteristics of functional conflict in a marketing channel?