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.

Accepted Answer

This statement is not false. In fact, Robert Lane, the CEO of Deere & Company, has stated that the company's independent dealers are an essential part of the Deere family and cannot be replaced. The other statements are true and accurate.

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

Accepted Answer

The degree of control a manufacturer has over its channel members is a major factor in determining the scope and frequency of its evaluation of channel members. If a manufacturer has a high level of control over its channel members, it may have more stringent evaluation standards and more frequent evaluations to ensure compliance with those standards. Conversely, if a manufacturer has little control over its channel members, it may have less frequent evaluations and less rigorous evaluation standards.

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.

Accepted Answer

Channel member performance audits should be periodic and comprehensive to ensure a thorough evaluation of all channel members. Conducting audits for all members at the same time may not be practical, and focusing on only one member at a time may not provide a broad enough perspective. Grouping audits by type or level may also miss important differences between individual channel members.

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.

Accepted Answer

When the manufacturer has greater control over the channel member, it is easier to obtain performance data. This is because the manufacturer has more insight into the operations of the channel member and can gather data more easily. Additionally, the manufacturer can establish performance metrics and hold the channel member accountable for meeting them. This results in more accurate and complete performance data.

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.

Accepted Answer

Evaluation by exception is the process of focusing on specific channel members whose performance is markedly different from the expected norm. It is an efficient way for manufacturers to identify and address issues with their sales channels by targeting the outliers rather than evaluating all members equally.

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

Accepted Answer

Day-to-day monitoring is the most appropriate appraisal that a channel manager could conduct to maintain current operating control of channel members' efforts to sell the manufacturer's products. This type of appraisal involves keeping a tab on the performance of channel members on a day to day basis to ensure that everything is going as planned. It allows the channel manager to identify and address any issues before they escalate and helps ensure that channel members are meeting their sales targets. Other types of appraisals such as sales analysis accounting, channel member performance audit, comprehensive evaluation, and standard output assessment may be useful, but they are not focused on maintaining current operating control of channel members' efforts.

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.

Accepted Answer

When distribution is less intense, companies tend to be more selective and thorough in evaluating channel members to ensure they align with the company's standards and objectives.

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.

Accepted Answer

The text states that "evaluating channel performance is just as important as evaluating employee performance." Therefore, the evaluation of channel member performance is of equal importance to 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

Accepted Answer

Since the manufacturer relies entirely on intermediaries for their sales, they have less direct contact with the end consumers. Therefore, the evaluation of their channel members becomes all the more important as they are the ones representing the manufacturer's products directly to the consumers. Thus, the evaluation is likely to be much more comprehensive.

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.

Accepted Answer

The answer of The channel member audit that is primarily...

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.

Accepted Answer

The answer of Retailers can be unwilling to voluntarily provide...

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

Accepted Answer

Complex products usually require multiple channel members to complete the distribution process, leading to a more complex supply chain network. Hence, evaluating the performance of each channel member becomes critical. This would require a broader scope of evaluation as compared to simpler products.

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.

Accepted Answer

A contractual agreement between the manufacturer and its channel members can include provisions that require the sharing of sales data. This can help the manufacturer obtain detailed sales data more readily.

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

Accepted Answer

The answer of According to Spriggs,which of the following is...

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.

Accepted Answer

A channel member performance audit refers to a comprehensive review of channel member performance conducted periodically. This audit is done to evaluate channel member effectiveness, identify areas for improvement, and develop strategies to enhance overall channel performance.

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.

Accepted Answer

If a product requires a high degree of post-sale service, the manufacturer is more likely to scrutinize the performance of their channel members to ensure that customers are receiving adequate support and service. This is important to maintain customer satisfaction and loyalty, as well as to protect the reputation of the manufacturer and their brand.

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.

Accepted Answer

The sales performance of a channel member is usually compared to their prior sales, the manufacturer's assigned sales quota, other channel members' sales, and other channel members' quota attainments. However, it is not usually compared to industry sales, as this is not a relevant benchmark for evaluating the performance of a specific channel member.

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.

Accepted Answer

Evaluating the volume of product each salesperson is selling is not relevant in terms of channel member sales data evaluation. The other options listed are relevant measures for evaluating channel member sales data.

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

Accepted Answer

The level of expertise of the channel managers does not directly affect the scope and frequency of channel member evaluations. These evaluations are more directly influenced by factors such as the importance of the channel members, the degree of control the manufacturer has over them, the nature of the product, and the 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.

Accepted Answer

Outcome-based and behavior-based measures are the two categories of performance measures to audit channel members according to Spriggs. Outcome-based measures focus on the results achieved, while behavior-based measures assess the actions and processes leading to those results.

Quiz 14: Evaluating Channel Member Performance

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

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

Channel member performance audits:

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

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

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?

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

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

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.

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

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

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

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

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

A channel member performance audit may be described as:

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

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

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

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

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