Deck 9: Business Marketing Channels: Partnerships for...

Question 1

A drop shipper carries all its inventory on a truck and services customers on a frequent basis.

Answer 1

False

Question 2

Unlike traditional legitimate power,legal legitimate power is often obtained in a trade for some other resource.

Answer 2

True

Question 3

By definition,channel intermediaries must take title to the goods they transfer from producers to users.

Answer 3

False

Question 4

Any partnership with vitality has conflict.

Question 5

Market share,efficiency and return on investment are the only goals motivating functional arrangements and activities in channels.

Question 6

A catalog wholesaler relies exclusively on a field sales force.

Question 7

Full-function wholesalers are firms that provide no buyer financing or delivery.

Question 8

Intermediaries specialize in certain functions and therefore can perform activities cheaper and better than a vertically integrated firm.

Question 9

Voice involves some means of articulating dissatisfaction.

Question 10

Aggression means to leave conflict untreated,allowing the relationship to atrophy or fade in significance.

Question 11

Agents and brokers do not buy or own the goods they sell.

Question 12

Most agency relationships have a degree of inherent goal conflict in that agents push for higher and higher sales,whereas manufacturers must be concerned with profit.

Question 13

Rewards and/or punishments are the only forms of power that are effective in affecting the behavior of channel members.

Question 14

Gap analysis is a set of tools for comparing performance outcomes/expectations on specific criteria.

Question 15

Corporate channels tend to portray high degrees of vertical integration in the sales and distribution functions.

Question 16

Channel functions can be shifted between buyers and members of the channel.

Question 17

Members of administered channels recognize their participation in a larger system and they interact with a formal chain of command.

Question 18

Since a key requirement for the use of information power is gaining the target firm's attention to the information,referent power seems to work well in concert with data and models.

Question 19

Brokers bring buyers and sellers together.

Question 20

Even if intensive personal selling is involved,a start-up firm lacks resources to initiate a national sales force.

Question 21

Intermediaries who take title to the merchandise they handle are:

A) Agents
B) Full-function wholesalers
C) Merchant wholesalers
D) Limited-function wholesalers
E) Cash-and-carry distributors

Question 22

A principal:

A) Is the manufacturer or other person or firm who contracts for the services of the agent in its own behalf
B) Is a firm carrying a very narrow line of services and supporting that with technical expertise and consultative selling
C) Is a firm that provides no buyer financing or delivery
D) Is a firm that buys products from a supplier but never takes physical possession
E) Is a manufacturer or other firm who does not buy or own the goods it sells

Question 23

These merchant wholesalers service customers on a frequent basis and can be an effective means of reaching a market of small customers constrained by high search costs.

A) Brokers
B) Desk jobbers
C) Catalog wholesalers
D) Manufacturers' agents
E) Truck jobbers

Question 24

All of the following marketing intermediaries take title to the goods they sell EXCEPT:

A) Merchant wholesalers
B) Agents
C) Limited-function wholesalers
D) Full-function wholesalers
E) Cash-and-carry distributors

Question 25

The primary function of _____ is to bring buyers and sellers together.

A) Full-function wholesalers
B) Manufacturers' agents
C) Selling agents
D) Commission merchants
E) Brokers

Question 26

Organizations that facilitate the transfer of title between the producer and user of a product are:

A) Distributors
B) Channel intermediaries
C) Channel transfer agents
D) Distribution specialists
E) Value-added agents

Question 27

Manufacturers' agents:

A) Hold title
B) Hold inventory
C) Promote the line
D) Provide negotiators
E) Provide credit

Question 28

Wholesaling operations that a manufacturer owns and operates are known as:

A) Catalog whole selling operations
B) Industrial distributors
C) Cash-and-carry distributors
D) Manufacturers' agents offices
E) Manufacturers' sales branches and offices

Question 29

Identify wholesalers who provide a broad array of services for their suppliers and customers including holding inventory,title,promotion,providing negotiator and credit.

A) Agents
B) Specialty wholesalers
C) Full-function wholesalers
D) Cash-and-carry distributors
E) Manufacturers' sales branches and offices

Question 30

A firm dealing in a "short line" of technologically complex products requiring expert explanation and/or consultative selling is most likely to seek the services of a:

A) Specialty wholesaler
B) Broker
C) Cash-and-carry distributor
D) Full-function wholesaler
E) Manufacturers' agent

Question 31

Drop shippers are also called:

A) Cash-and-carry distributors
B) Truck jobbers
C) Desk jobbers
D) Single-line wholesalers
E) Specialty wholesalers

Question 32

Firms that provide no buyer financing or delivery are:

A) Drop shippers
B) Single-line wholesalers
C) Specialty wholesalers
D) Cash-and-carry distributors
E) Truck jobbers

Question 33

In terms of marketing channels,which of the following statements is false?

A) Physical distribution tasks are the only ones performed by a channel system
B) Business marketing channels are systems designed to close numerous gaps between the manufacture and use of products
C) Channel intermediaries are organizations that facilitate the transfer of title between the producer and user of a product
D) Adding an intermediary can reduce the number of transactions in a system
E) Channels can affect the efficiency of buying and selling

Question 34

Which of the following intermediaries provides the least number of services/functions?

A) Limited-function wholesalers
B) Retailer cooperatives
C) Manufacturers' agents
D) Commission merchants
E) Rack jobbers

Question 35

A _____ buys products from a supplier but never takes physical possession; instead they are delivered directly to the user.

A) Manufacturers' agent
B) Drop shipper
C) Catalog wholesaler
D) Broker
E) Truck jobber

Question 36

These merchant wholesalers rely exclusively on mail,phone,Internet and fax orders from their web sites,but do not have a field sales force.

A) Manufacturers' agents
B) Catalog wholesalers
C) Brokers
D) Single-line wholesalers
E) Specialty wholesalers

Question 37

Agents:

A) Do not buy or own the goods they sell
B) Are intermediaries who take title to the merchandise
C) Include a number of subtypes, which differ in the functions they perform
D) Provide a broad array of services for their suppliers and customers
E) Provide no buyer financing or delivery

Question 38

Which of the following channel intermediaries provides the most number of functions?

A) Drop shippers
B) Rack jobbers
C) Brokers
D) Selling agents
E) Commission merchants

Question 39

Which of the following wholesaler's do not take title to sell the lines of noncompeting principal for a commission?

A) Catalog wholesalers
B) Full-service wholesalers
C) Drop shippers
D) Truck jobbers
E) Manufacturers' agents

Question 40

Single-line wholesalers:

A) Do not carry an assortment of items
B) Are sometimes called industrial distributors
C) Do not buy or own the goods they sell
D) Are wholesaling operations that a manufacturer owns and operates
E) Provide a broad array of services for their suppliers and customers

Question 41

_____ is steadfast perseverance in the face of conflict's felt tension or abuse.

A) Loyalty
B) Aggression
C) Voice
D) Courage
E) Obedience

Question 42

_____ is a critical process for uncovering the origin of a conflict and involves some means of articulating dissatisfaction.

A) Exit
B) Aggression
C) Voice
D) Loyalty
E) Neglect

Question 43

Which of the following statements about rewards and punishments is false?

A) They work by altering the outcomes of the particular action
B) They are a very direct means of changing another's behavior
C) Neither approach affects the other's motivation for the behavior itself
D) Rewards and coercion compel others to comply for the rightness of the act
E) If a channel member can witness other positive outcomes of compliance, it will begin to internalize the behavior

Question 44

In terms of 'conflict consequences',which of the following statements is true?

A) If parties work redundantly, the system will get trounced by a competitive channel
B) The total elimination of conflict enhances a relationship
C) Any partnership with vitality does not have conflict
D) Conflict always proves destructive
E) Even if disparate goals are reconciled, at least one party will go unsatisfied

Question 45

In terms of goal conflict,manufacturers,when compared to distributors and agents:

A) Are apt to seek some satisfactory level that affords their sought lifestyle
B) Are less aggressive
C) Care particularly more about the distributor's overall growth
D) Are apt to seek some hypothetical maximum profit
E) Care particularly more about their product category

Question 46

_____ power is the ability to provide payoffs to a party for specified behaviors or outcomes.

A) Coercive
B) Expert
C) Reward
D) Persuasive
E) Referent

Question 47

_____ is a property of a relationship deriving from one member's dependence on another for valued resources.

A) Power
B) Aggression
C) Loyalty
D) Control
E) Dependence

Question 48

In terms of responses to conflict,this is a bold move and is perhaps difficult to be seen as a positive approach to conflict.

A) Loyalty
B) Voice
C) Exit
D) Aggression
E) Neglect

Question 49

Retaliatory business practices that accelerate a downward trust spiral signify:

A) Aggression
B) Neglect
C) Carelessness
D) Frustration
E) Exit

Question 50

The ability of one channel member to mediate punishments to get another to do what it otherwise would not do is:

A) Coercive power
B) Reward power
C) Persuasive power
D) Referent power
E) Expert power

Question 51

_____ resides in a channel member's reliance on facts and figures,models and insights from its partner.

A) Expert power
B) Information power
C) Referent power
D) Reward power
E) Coercive power

Question 52

Channel options may be compared against the "ideal" channel by using:

A) Gap analysis
B) SWOT analysis
C) Performance analysis
D) Market analysis
E) Risk analysis

Question 53

Aggression:

A) Is steadfast perseverance in the face of conflict's felt tension
B) Is a case of minimal interest in the conflict
C) Characterizes struggling new-channel relationships
D) Is a critical process for uncovering the origin of the conflict
E) Tends to add fuel to the sparks of conflict

Question 54

Which of the following responses to conflict is most likely to have positive results?

A) Exit
B) Voice
C) Loyalty
D) Aggression
E) Neglect

Question 55

A distributor can punish a supplier by delaying payments,withholding sales efforts,trimming inventories and terminating also.This is an example of:

A) Coercive power
B) Reward power
C) Information power
D) Expert power
E) Referent power

Question 56

Redundant systems do all the following EXCEPT:

A) Afford a measure of slack for learning new routines
B) Serve as a buffer against some types of opportunism
C) Provide a backup for current accounts that should not suffer through the transition
D) Ensure that payment for final shipments is made promptly and completely
E) Operate during the wind-down period

Question 57

Neglect:

A) Is steadfast perseverance in the face of conflict's felt tension
B) Includes open or covert actions intended to injure the conflict party
C) Includes hurtful words
D) Can allow the relationship to atrophy
E) Characterizes nonprofit partnerships

Question 58

In terms of goal conflict,agents:

A) Tend to seek some hypothetical maximum profit
B) Are apt to seek some satisfactory level that affords their sought lifestyle
C) Are very aggressive
D) Care particularly more about their product category
E) Are concerned more about the distributor's overall growth

Question 59

_____ is felt or enacted tension between parties

A) Perception
B) Aggression
C) Conflict
D) Violence
E) Sensitivity

Question 60

Which of the following responses to conflict indicates a lack of interest or perceived importance of the issue?

A) Loyalty
B) Neglect
C) Exit
D) Aggression
E) Voice

Question 61

The source is able to direct the behavior of the target because cultural norms support the source in:

A) Expert power
B) Reward power
C) Punishment power
D) Traditional legitimate power
E) Referent power

Question 62

Resellers are allowed to promote the fact that they are authorized by the manufacturer to carry a particular line under these systems.

A) Corporate channels
B) Franchisor-franchisee systems
C) Authorized wholesalers and dealers
D) Administered channels
E) Transactional channels

Question 63

A distributor may agree not to carry competing lines and to recognize the penalty of termination for a breach.This is an example of:

A) Information power
B) Legal legitimate power
C) Referent power
D) Expert power
E) Traditional legitimate power

Question 64

The basis of legitimate power stems from:

A) Politics
B) Value
C) Tradition
D) Society
E) Economy

Question 65

Manufacturers have the greatest control over:

A) Administered channels
B) Relational channels
C) Corporate channels
D) Contractual channels
E) Administered channels

Question 66

Expert power is based on the source's:

A) Ability to directly provide rewards
B) Ability to impose punishments
C) Ownership of an asset
D) Legal position
E) Reputation

Question 67

Compare and contrast traditional legitimate power and legal legitimate power?

Question 68

A manufacturer that invests in a market-tracking system that can provide product category forecasts for different regional wholesalers will possess _____ power over the buying and inventory activities of its wholesalers.

A) Coercive
B) Expert
C) Referent
D) Reward
E) Information

Question 69

High degrees of vertical integration in the sales and distribution functions are the hallmark of:

A) Corporate channels
B) Administered channels
C) Contractual channels
D) Transactional channels
E) Relational channels

Question 70

Write a note on the key management challenges for manufacturers using distributors?

Question 71

In administered channels:

A) The leader has no legal legitimate base of power
B) The members trade at arm's length
C) Each firm operates on its own
D) Formal procedures tightly coordinate the channels
E) There are high degrees of vertical integration in the sales and distribution functions

Question 72

Define the two types of limited-function wholesalers?

Question 73

All the following statements about ownership are true EXCEPT:

A) It provides a significant measure of control over channel functions
B) It can safeguard investments that have no use outside of the relationship
C) It provides a number of coordination advantages that arise from employees working in close proximity
D) It guarantees that the owner can perform a function well and economically because of scale
E) It allows for many coordination advantages that arise from employees following explicit procedures

Question 74

The desire to identify with or be like,another person or firm is:

A) Referent power
B) Expert power
C) Reward power
D) Punishment power
E) Legitimate power

Question 75

Identify the incorrect statement regarding corporate systems.

A) They benefit from employee commitment.
B) They are characterized by communication efficiency.
C) They usually have tighter administrative control.
D) They do not require significant financial resources.
E) They need considerable motivational mechanisms

Question 76

In _____ channels,coordination results from an ad hoc division of labor and informal leadership.

A) Corporate
B) Administered
C) Contractual
D) Relational
E) Transactual

Question 77

Which of the following types of channels feature the LEAST coordination between the "members"?

A) Relational channels
B) Contractual channels
C) Corporate channels
D) Administered channels
E) Transactional channels

Question 78

What are the four primary steps in the marketing channel design process?

Question 79

What are the consequences of conflict?

Question 80

Formal procedures and pledges of ongoing exchange provide tight coordination in:

A) Relational channels
B) Administrated channels
C) Corporate channels
D) Contractual channels
E) Transactional channels