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Chapter 4—Behavioral Processes in Marketing Channels
MULTIPLE CHOICE
1. Conflict between Burger King and its franchisees has occurred because:
a.
Increases in Burger King’s product line.
b.
Burger King raising fees it charges its franchisees.
c.
Greater push by Burger King to use online web sites to market its burgers.
d.
Burger King franchisees were forced to set low prices for some menu items.
e.
Burger King forced improvements of franchisee profit margins.
2. The underlying theme of the relationship among channel members presented in the text
stresses:
a.
Conflict.
b.
Power struggles.
c.
Lack of community.
d.
Cooperation.
e.
Animosity.
3. Four fundamental behavioral processes relevant to the marketing channel are:
a.
Role, power, conflict, and segmentation.
b.
Social class, motivation, conflict, and power.
c.
Control, cooperation, perception, and culture.
d.
Power, conflict, role, and communication.
e.
Conflict, power, communication, and group processes.
4. The marketing channel should be viewed as:
a.
An economic system only.
b.
An economic system affected solely by economic variables.
c.
A behavioral system affected only by economic variables.
d.
A business environment.
e.
An interorganizational social system.
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5. The social systems perspective of marketing channels is appropriate because:
a.
The managerial perspective is less important than previously thought.
b.
Specialization and division of labor apply more than ever in the 1990s.
c.
The legal environment requires it.
d.
Technology changes have to be offset.
e.
A solely economic approach is not adequate for understanding channels.
6. Conflict in the marketing channel is usually referred to as behavior that is:
a.
Nasty and vicious.
b.
Unwarranted and useless.
c.
Object centered.
d.
Goal impeding.
e.
Unfair.
7. Competition is different than conflict because:
a.
In competition the parties do not try to impede each other’s goal attainment.
b.
Competition is personal.
c.
In conflict the parties’ goals are compatible.
d.
Competition is self-centered.
e.
Competition is direct.
8. Conflict in marketing channels is often caused by all of the following except:
a.
Different economic objectives.
b.
Ideological differences.
c.
Inappropriate channel structure.
d.
Differing perceptions.
e.
A focus on object centered behavior.
9. SEA Publishing and Kate’s Bookstores are embroiled in conflict over who should
establish retail prices. The conflict likely is the result of:
a.
Communication difficulty.
b.
Decision domain disagreements.
c.
Goal incompatibility.
d.
Perceptual differences.
e.
Role incongruencies.
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10. Two retailers are fighting for the right to represent a major manufacturer in New York.
The conflict between these two retailers is probably caused by:
a.
Decision domain disagreements.
b.
Role incongruencies.
c.
Perceptual differences.
d.
Expectational differences.
e.
Allocation of scarce resources.
11. A wholesaler and retailer have become embroiled in conflict over attempts by the
wholesaler’s sales force to help the retailer display its products. The retailer views this
sales force as a nuisance that interferes with customer service. There seems to be a
problem of:
a.
Expectational differences.
b.
Goal incompatibilities.
c.
Resource scarcities.
d.
Role incongruencies.
e.
Perceptual differences.
12. In the case of the franchiser Alpha Graphics discussed in the text, the main cause of the
conflict with franchisees probably stemmed from:
a.
Communication difficulties.
b.
Goal incompatibilities.
c.
Expectational differences.
d.
Perceptual differences.
e.
Role incongruities.
13. _____________ occur when publishers want to sell as much of their product as possible
through Amazon.com and when Amazon.com wants to sell as much merchandise as
possible from all sources.
a.
Perceptual differences
b.
Goal incompatibilities
c.
Expectation differences
d.
Communication difficulties
e.
Role incongruities
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14. With regard to channel conflict and channel efficiency:
a.
The most commonly held view is that conflict has no effect on channel efficiency.
b.
A wealth of empirical data about the relationships between conflict and channel
efficiency exists.
c.
Rosenbloom hypothesizes a general curve suggesting that conflict initially
increases channel efficiency.
d.
Channel conflict is usually expected to have a negative effect.
e.
Conflict forces manufacturers to use less total input.
15. Which of the following is not an input to achieving distribution objectives?
a.
Routine calls on a retailer by a wholesaler’s sales force
b.
Fees paid by a manufacturer to a retailer for handling coupons
c.
Wholesalers’ warehouse space
d.
Consumer demand for products
e.
Time and effort of the sales force
16. The relationship between channel conflict and channel performance is expressed in terms
of:
a.
Communications policy.
b.
Incompatibilities and dissension.
c.
Channel efficiency.
d.
Channel processes.
e.
There is no established relationship between channel conflict and channel
performance.
17. The greater the degree of optimization in carrying out a distribution objective:
a.
The lower is the level of channel efficiency.
b.
The higher is the level of channel efficiency.
c.
The faster the distribution objective is achieved.
d.
The lower is the level of conflict.
e.
The higher is the level of conflict.
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18. In order to get retailers to display its product, a manufacturer has to have its salespeople
go to the retailers’ stores, set up the displays, and instruct them in how to utilize the
displays. In this example:
a.
Conflict is obviously not present.
b.
Channel efficiency is apparently quite high.
c.
Extra input is needed to achieve the distribution objective.
d.
Trade margins appear to be too low.
e.
The manufacturer is unable to achieve channel efficiency.
19. Which of the following generalizations about conflict is not true?
a.
Conflict is an inherent behavioral dimension in the channel.
b.
Given the numerous cases from which conflict may stem, it is a pervasive
phenomenon in channels.
c.
Conflict can affect channel efficiency.
d.
Various levels of conflict may have both negative and positive effects on channel
efficiency–possibly resulting in no effect.
e.
Studies have found that leadership styles do not have an impact in creating
conflict.
20. A well designed and managed marketing channel:
a.
Will be able to eliminate conflict among the channel members.
b.
Will have mechanisms for dealing with conflict because it cannot be eliminated.
c.
Will only have conflict of the type that does not impact channel efficiency.
d.
Will have contracts among the channel members that effectively resolve conflict
before it arises.
e.
Will have to deal with conflict on an ad hoc basis as nothing else can be done.
21. In practice, conflict is usually spotted:
a.
Immediately.
b.
When it is first beginning to develop.
c.
After it is well developed and obvious.
d.
After a marketing channel audit has been conducted.
e.
After channel members’ perceptions of performance have been measured.
22. With regard to channel conflict, it is true that:
a.
The channel manager must make a conscious effort to detect channel conflict.
b.
A marketing channel audit is the best method for conflict detection.
c.
Surveys of channel members’ perceptions of performance are useless for the
detection of conflict.
Behavioral Processes in Marketing Channels
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d.
A company’s sales force should not be used to help detect conflict.
e.
Manufacturer vs. wholesaler perceptions do not lead to channel conflict.
23. Which of the following statements regarding appraising the effects of conflict on the
channel is true?
a.
At present, the conflict index is used in most consumer products channels.
b.
At present, most appraisals rely on the channel manager’s subjective judgment.
c.
At present, most channel managers use a linear scale measuring conflict intensity
and frequency.
d.
At present, the channel manager uses a scale to relate frequency of disagreements
to channel member performance.
e.
Channel managers that use objective scales of analysis obtain the best results for
identifying channel conflict.
24. When an evaluation of key areas of the relationship of a channel member with other
members takes place, a(n) ____________ has been used.
a.
advisory council analysis
b.
marketing channel audit
c.
cost-benefit analysis
d.
perceptions survey
e.
early warning system
25. All of the following are advantages of using arbitration for resolving channel conflict
except:
a.
It lessens secrecy.
b.
It is less expensive than litigation.
c.
It confronts problems in their incipient stages.
d.
It is relatively fast.
e.
It often involves industry experts.
26. The feasibility and applicability of the various approaches for resolving channel conflict
will:
a.
Both increase as a firm becomes larger and more powerful.
b.
Vary for different kinds of channels under different sets of circumstances.
c.
Be much higher for the manufacturer than for the wholesaler or retailer.
d.
Vary far more for the larger channel members than the smaller.
e.
Cost about the same to implement, but vary on effectiveness.
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27. In resolving channel conflict, the channel manager should:
a.
Compromise only when the other party involved is a larger or more powerful firm.
b.
Leave it alone as it usually dissipates across time and interfering tends to make
things worse.
c.
Consider a “peace conference” to jointly solve the problem.
d.
Use informal inquiries to determine the cause of the conflict.
e.
Consider using other providers to carry out channel tasks.
28. Which of the following is not a useful approach to resolving channel conflict?
a.
The use of an authoritarian leadership style by the channel manager.
b.
The application of organizational development concepts.
c.
Face-to-face meetings.
d.
Specialized bargaining and negotiating procedures.
e.
Set up a specialized organization for information gathering purposes.
29. _________ is defined as when a channel member exerts control or influence over the
behavior of another channel member.
a.
Aggressiveness
b.
Opposition
c.
Marketing channel power
d.
Leadership
e.
Charisma
30. Franchisors have the right to tell franchisees how to market products because of the
franchise contract. In this case, franchisors are emphasizing the use of:
a.
Referent power.
b.
Reward power.
c.
Legitimate power.
d.
Coercive power.
e.
Expert power.
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31. Retailers are often willing to adhere to the wishes of large manufacturers such as Procter
& Gamble and General Foods because these companies sell brands of products that are in
great demand by consumers. These large manufacturers are in a position to emphasize the
use of:
a.
Reward power.
b.
Expert power.
c.
Referent power.
d.
Legitimate power.
e.
Channel power.
32. Many manufacturers will listen to retailers’ product demands because retailers are
knowledgeable about consumer needs. Such retailers are in a good position to emphasize
the use of:
a.
Reward power.
b.
Expert power.
c.
Coercive power.
d.
Referent power.
e.
Legitimate power.
33. Clayton Computer Systems is a value-added retailer that promotes its products as the
very latest in technology. Hardware and software producers with a reputation for being
on the leading edge will be in a good position to use __________ power with Clayton.
a.
coercive
b.
expert
c.
legitimate
d.
referent
e.
reward
34. With regard to coercive power, available evidence suggests that:
a.
Coercive power should be used to force channel members to stay within
designated territories.
b.
Coercive power should be the first type of power used to obtain channel member
cooperation.
c.
The use of coercive power is likely to lead to a higher incidence of conflict in the
channel.
d.
The use of coercive power is likely to increase the stability and viability of the
channel.
e.
Coercive power is often used by smaller companies in the marketing channel.
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35. Sylvan Learning Center’s ad stressing its pride in being the world leader in
supplementary education is an example of:
a.
Expert power.
b.
Reward power.
c.
Referent power.
d.
Coercive power.
e.
Legitimate power.
36. Generally the power bases available to the manufacturer are a function of all of the
following except:
a.
The size of the manufacturer relative to his channel members.
b.
The leadership style of the channel manager.
c.
The particular set of circumstances surrounding the channel relationship.
d.
The organization of the channel.
e.
The size of the producer relative to other channel members.
37. Hoover’s “All Aboard” marketing campaign in trade magazines portrayed in the text was
based largely on _________ power to attract channel members.
a.
coercive
b.
reward
c.
legitimate
d.
expert
e.
referent
38. In order to select the right power bases to use, the channel manager needs to know:
a.
How effective the various power bases are for influencing channel member
behavior.
b.
What reactions the channel members might have in response to the use of different
power bases.
c.
How the use of the various power bases might affect the overall channel
relationship.
d.
All of the above.
e.
Only a and c are correct.
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39. Large retailers tend to have ________ power over their smaller manufacturers or
suppliers.
a.
low levels of coercive
b.
referent
c.
high levels of expert
d.
high levels of reward
e.
low levels of legitimate
40. Typically, the larger the producer or manufacturer, the higher the __________ power
bases available to it.
a.
expert and reward
b.
expert and legitimate
c.
reward and coercive
d.
legitimate and coercive
e.
There is no pattern that can be generalized.
41. Channel research that has dealt with the use of coercive power in the channel indicates
that coercive power:
a.
Is highly effective.
b.
Reduces the probability of channel members taking legal action to gain
countervailing power.
c.
Appears to foster conflict.
d.
Reduces channel member dissatisfaction.
e.
Has little or no effect on channel member satisfaction.
42. One study by Etgar found that in channels with relatively small local dealers, power
employed by manufacturers based on economic rewards or coercion provided a degree of
control over channel members __________ power based on legitimacy, expertise or
reference.
a.
Higher than
b.
Lower than
c.
Equal to
d.
The opposite of
e.
No pattern on degree of control was suggested by the study.
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43. A study found that in a franchised channel, avoidance of using coercive power resulted in
all of the following except:
a.
Franchisees had higher morale.
b.
Franchisees were more likely to file class action suits.
c.
Franchisees were more likely to cooperate with the franchisor.
d.
Franchisees were less likely to terminate their contracts.
e.
Franchisees were less likely to file individual suits against the franchisor.
44. When considering the use of power in international channels, U.S. channel managers
know that:
a.
Power is a fairly universal concept, and all cultures perceive power and its use
pretty much the same way Americans do.
b.
Cultural differences can affect how channel members perceive the use of various
power bases.
c.
The Japanese relate to the use of power in a way typical of Western cultures.
d.
Australian channel members do not respond negatively to the use of coercive
power.
e.
An aggressive use of power is effective to use on Japanese channel members.
45. A recent study of marketing channels in China found:
a.
That Chinese beer distributors had similar perceptions of power as their western
counterparts.
b.
Chinese distributors divide power into legitimate and illegitimate categories.
c.
Chinese distributors were more satisfied when suppliers used coercive power.
d.
Chinese distributors reacted positively to both reward and referent power when
used by western suppliers.
e.
Expert power was not effective among Chinese distributors.
46. The text defines role as:
a.
The jobs performed by the various channel members.
b.
A set of prescriptions defining what the behavior of a position member should be.
c.
The behaviors that channel members typically engage in.
d.
A set of activities that are appropriate for particular channel members.
e.
The place of the channel member within the marketing channel.
47. According to the text, the concept of role is of use to the channel manager because it:
a.
Is based on expert power and therefore helps him/her to control channel member
behavior.
b.
Helps him/her to describe motives of channel members.
c.
Provides him/her with insight into the constraints under which channel members
operate.
d.
Helps to better understand the power of ‘megadealers’.
e.
Provides insight into actions that lead to conflict.
48. Which of the following statements about role is not true?
a.
It helps define acceptable behavior for occupants of positions or roles in the
channel.
b.
A manufacturer’s role is to promote its brand effectively.
c.
Roles in the marketing channel stay constant over time.
d.
Megadealers in the automobile industry want their role to expand so they are
included in the decision making process of product development.
e.
Allows the channel manager to determine what role a particular channel member is
expected to play.
49. More congruent roles should lead to:
a.
More conflict in the channel but also improved channel efficiency.
b.
A higher level of power for each of the channel members.
c.
More elaborate channel structures.
d.
More cooperative and efficient channels.
e.
A higher commonality of goals among channel members.
50. The vehicle for all interactions among channel members is:
a.
Cooperation.
b.
Communications.
c.
Contracts.
d.
Facilitators
e.
Technology.
51. To reduce communications difficulties with small independent retailers, channel
managers in large manufacturing firms should:
a.
Learn whether the goals of smaller channel members are very different from
his/her own firm’s goals.
b.
Emphasize the value of small businesses in channel communiqués.
c.
Use industry jargon.
d.
Follow up oral discussions with a written summary.
e.
Include managers from all levels of the firms in channel member meetings.
52. Which of the following is not likely to cause communications problems based on
perceptual differences?
a.
Just-in-time delivery standards
b.
Reasonable delivery schedules
c.
Industry standard delivery time
d.
Corporate goals
e.
Return privileges
53. In their communications, channel members often omit or distort information:
a.
To obtain feedback on plans before they are implemented.
b.
To protect promotional plans from being leaked to the competition.
c.
And thus build additional expert power.
d.
To gain additional profits.
e.
To mislead competitors.