Question 1

The most readily available reseller diagnostics are_______.Suppliers evaluate four categories of expenses - customer communications,paperwork flows,physical distribution,and financial risk assumptions - to learn whether certain costs are under control and to contrast the efficiency of one channel versus another.

Accepted Answer

Expense-to-revenue ratios are the most readily available reseller diagnostics for suppliers. These ratios help suppliers evaluate their costs to determine whether they are under control and compare the efficiency of different distribution channels. The other options listed (partner relationship management system, performance and activity reports, turns x earns) may also be useful in evaluating reseller performance but may not be as readily available as expense-to-revenue ratios.

Question 2

Resellers _______ as technology evolves.A reseller may be able to put those new developments to use for customer firms in the form of new support services.

Accepted Answer

Resellers have the potential to innovate as technology evolves by keeping up with new developments and finding ways to implement them in order to provide new and improved support services to their customer firms.

Question 3

To ensure that superior value is delivered to customers,suppliers provide help in the form of _______ which includes courses,seminars,certification programs and building skills.

Accepted Answer

Training and coaching provided by suppliers helps to improve the skills and knowledge of customers, which in turn leads to superior value being delivered. Sales and marketing programs and pricing support may also contribute to value delivery, but they are not directly related to building skills and knowledge. Operational and technical support can be helpful, but it does not provide the same level of value as training and coaching.

Question 4

The _________ is designed to motivate resellers to buy in large quantities and store local inventory.

Accepted Answer

Quantity or volume discounts are offered to resellers as an incentive to buy in larger quantities, which helps to minimize future ordering and handling costs. This also encourages resellers to maintain local inventory, ensuring product availability to customers when required.

Question 5

A _______ is a business regimen that enhances the ability of a supplier firm,resellers,and third-party service providers to seamlessly integrate and synchronize their operations,selling,marketing,and servicing efforts.

Accepted Answer

Partner relationship management system is a business regimen that enhances the integration and synchronization of operations and efforts between supplier firms, resellers, and third-party service providers. This system helps to develop stronger relationships and collaborations between the organizations, leading to improved overall performance and sales. Options B, C, and D are not relevant to the given definition.

Question 6

The ___________ reflects the fact that evolving marketplaces may dramatically and unexpectedly alter the goals and resources of channel partners.

Accepted Answer

The law of perpetual change acknowledges the fact that marketplaces are constantly evolving and changing, which may impact the goals and resources of channel partners. This emphasizes the need for flexibility and adaptability in channel partnerships. The other options, such as the law of legitimate cross-purposes, opportunism, and alignment, do not specifically address the idea of evolving marketplaces affecting channel partnerships.

Question 7

The _______ captures two critical performance dimensions for resellers: how quickly they are turning inventory and how much gross profit they make on these sales.

Accepted Answer

The term "turns" refers to inventory turnover, or how quickly a reseller is selling their inventory, while "earns" refers to the gross profit made on those sales. This formula, known as "turns x earns", captures these two important performance dimensions for resellers.

Question 8

Parker Hannifin Corporation supports resellers with _______ such as furnishing contact information on prospects to distributors and proposing strategies for cultivating new business from existing and potential accounts.These strategies include recommendations on how to customize offerings for local customers and cross-sell the full line of PH products.

Accepted Answer

Parker Hannifin Corporation provides sales and marketing programs to support their resellers, which include furnishing contact information on prospects and proposing strategies for cultivating new business. Additionally, these strategies recommend customizing offerings for local customers and cross-selling the full line of PH products.

Question 9

________ refers to "self-interest seeking with guile.

Accepted Answer

Opportunism refers to the behavior of seeking self-interest with guile, which means taking advantage of situations for personal gain without regard for ethical considerations. It involves the idea of being opportunistic and using any means necessary to achieve goals, even if they involve unethical or immoral behavior.

Question 10

A(n)________ is the continuing process of aligning the mutual self interests and complementary resources of partner firms in stable marketplaces,responding adaptively to incremental marketplace changes,and transforming channels in the face of disruptive forces.

Accepted Answer

Sustaining reseller partnerships involve the ongoing process of aligning mutual self-interests and resources of partner firms, adapting to market changes, and transforming channels when facing disruptive forces. This definition fits the description given.

Question 11

Suppliers offer resellers a ________ to encourage them to pay for goods immediately.

Accepted Answer

Payment discount is a discount offered by the supplier to the reseller, encouraging them to make the payment for goods immediately rather than waiting for the agreed upon payment date. Therefore, option B is the correct choice. Allowance refers to a reduction in price due to a specific reason or circumstance, while quantity or volume discount is offered to the reseller for purchasing in bulk, and trade or functional discount is a reduction in price offered by suppliers to channel members for performing certain functions.

Question 12

Supplier firms can reduce the cost-to-serve customers for an entire marketing channel by maintaining and providing _______ in the form of inventory control,logistics,and customer service systems for other channel partners.

Accepted Answer

Operational and technical support can reduce the cost-to-serve customers for an entire marketing channel by helping other channel partners manage inventory, logistics, and customer service efficiently, leading to cost savings for the entire channel. Training and coaching, sales and marketing programs, and pricing support may also help in serving customers better, but they may not directly result in cost savings for the channel.

Question 13

_______,is the overall level of disagreement in the working partnership determined by the frequency,intensity,and duration of disagreements.

Accepted Answer

Conflict refers to a situation of disagreement among individuals, groups or organizations. The overall level of disagreement is determined by the frequency, intensity and duration of the disagreements that occur. The higher the frequency, intensity and duration, the greater the level of conflict in the working partnership.

Question 14

To be sure that resellers _______,they are turning to techniques popularized by the quality movement.Central States Industrial Supply devised standard procedures for performing the firm's services and a quality management system.

Accepted Answer

The sentence mentions that resellers are turning to techniques popularized by the quality movement, indicating a focus on providing superior service to customers. Therefore, the best choice is B, "provide superior service." The other choices may also be important for resellers, but they are not specifically mentioned in this context.

Question 15

A(n)________ captures the extent to which goal congruence exists among partner firms' self-interests and the degree to which complementary resources and capabilities enable the partner firms to capitalize on marketplace opportunities.

Accepted Answer

Alignment refers to the level of agreement between partner firms in terms of their goals and interests, as well as their ability to work together effectively given their complementary resources and capabilities. It is a key factor in the success of partnerships, and can help ensure that both parties are able to capitalize on marketplace opportunities and achieve mutual benefits. The other choices do not directly relate to the concept of alignment.

Question 16

Trade associations and consulting firms commonly compile and publish industry averages of diagnostic measures in _______

Accepted Answer

Trade associations and consulting firms commonly compile and publish industry averages of diagnostic measures in performance and activity reports. These reports provide insights into the overall health and performance of an industry and help businesses to benchmark their own performance against industry standards.

Question 17

The _______ refers to the fact that supplier firms and reseller firms rely upon different profit models that are sometimes at odds with one another.

Accepted Answer

The law of legitimate cross-purposes refers to the fact that suppliers and resellers may have different profit models and goals that can conflict with each other. This can lead to tension and conflicts between the two parties as they try to balance their own interests while also working together to sell products or services.

Question 18

A(n)________ refers to the extent to which there is mutual recognition and understanding that the success of each firm depends on the other firm,with each firm consequently taking actions so as to provide a coordinated effort focused on jointly satisfying the requirements of the customer marketplace.

Accepted Answer

The answer of A(n)________ refers to the extent to which...

Question 19

_________ captures the perceived continuity or growth in the relationship between two firms.It entails a desire to develop a stable relationship,and a willingness to make short-term sacrifices to maintain the relationship.

Accepted Answer

The concept described in the question is commitment, which refers to the willingness of firms to maintain a stable relationship and make short-term sacrifices to do so. Option A, the law of perpetual change, does not relate to the topic of inter-firm relationships. Option B, opportunism, refers to the pursuit of self-interest without consideration for others and does not fit the context of a stable long-term relationship. Option C, alignment, refers to the agreement of interests and goals between two firms, but does not necessarily capture the idea of sacrificing in the short-term to maintain the relationship.

Question 20

The ________,stated as a percent reduction from the suggested resale price,ideally covers the reseller's costs of performing assigned tasks and provides the reseller with a reasonable profit.

Accepted Answer

The trade or functional discount is given to resellers as a percentage reduction from the manufacturer's suggested resale price. Its purpose is to cover the reseller's expenses and provide a reasonable profit margin.

Quiz 9: Sustaining Reseller Partnerships