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Chapter 7—Selecting the Channel Members
MULTIPLE CHOICE
1. The selection of channel members according to the text is __________ the selection of
employees.
a.
almost as important as
b.
as important as
c.
more important than
d.
of little importance compared with
e.
much easier than
2. The selection of channel members:
a.
Always involves basic changes in channel structure.
b.
Is of most importance to vertically integrated manufacturers.
c.
Is sometimes necessary even though the basic channel structure remains the same.
d.
Is one of the first phases of channel design.
e.
Is the same as choosing channel structure.
3. Which of the following is an incorrect statement about manufacturers and producers choosing
a two-level channel structure?
a.
They use a six-phase process in channel design.
b.
They do not have to worry about selection of channel members.
c.
It is not necessary to allocate any distribution tasks to intermediaries.
d.
They do not have to make selection decisions.
e.
They need to develop specific criteria to evaluate channel members.
4. The selection of channel members:
a.
Cannot take place in the absence of the channel design process.
b.
Is the most important phase of channel design.
c.
Can occur even when channel structure is not altered.
d.
Should be done at least on an annual basis.
e.
Is essentially the same as the evaluation of channel members.
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5. As a general rule, the higher the level of selectivity of distribution:
a.
The greater the emphasis on selection.
b.
The less the emphasis on selection.
c.
The lower the emphasis on finding prospective channel members.
d.
The fewer the criteria used in selection.
e.
The more crucial the need to place products in all appropriate outlets.
6. As a general rule, the greater the intensity of distribution:
a.
The less the emphasis on selection.
b.
The greater the emphasis on selection.
c.
Intensity is not related to the selection decision.
d.
The more complex the issues surrounding selection.
e.
The development of specific criteria for channel member selection becomes very
important.
7. If a channel has been structured to emphasize intensive distribution:
a.
A great deal of emphasis is placed on selection.
b.
Less emphasis is placed on selection.
c.
Selection takes a long time to accomplish.
d.
Channel members must be presold on the products prior to distribution.
e.
The selected channel members must be re-evaluated every two years.
8. In highly intensive distribution, the selection criteria for channel members:
a.
Tend to be complex.
b.
Amount to “Can they pay their bills?”
c.
Focus on matching retailer image with product image.
d.
Cannot be generalized.
e.
Focuses on their efficiency in completing the distribution task.
9. According to the text, the most important source for finding prospective channel members is:
a.
Trade sources.
b.
Reseller inquiries.
c.
Distributors’ customers.
d.
Field sales organizations.
e.
Facilitating agencies.
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10. The manufacturer’s salespeople are often able to do all of the following except:
a.
Know the prospective channel members in their territories.
b.
Provide objective evaluations of channel members.
c.
Become acquainted with the management of salespeople of prospective channel
members.
d.
Obtain a good deal of information about prospective channel members.
e.
Line up intermediaries in advance.
11. Trade sources used for finding prospective channel members include all of the following
except:
a.
Local newspapers.
b.
Trade associations.
c.
Trade shows.
d.
“Grapevine”.
e.
Other firms selling similar products.
12. The best way for the manufacturer to obtain information about potential intermediaries from
customers is by _______________ to learn customers’ views about distributors in their
market area.
a.
talking with competitors who serve the same customers
b.
conducting surveys
c.
using focus groups
d.
setting up a suggestion box
e.
analyzing buyer data from UPCs
13. A significant problem with using the sales force to find prospective channel members is that:
a.
In many cases salespeople do not know their territories well.
b.
Salespeople are not in a good position to recognize potential new channel
members.
c.
Salespeople may not devote much effort to finding new channel members because
they may not be adequately rewarded for doing so.
d.
It is very expensive to use salespeople for this purpose.
e.
Salespeople are not trained to evaluate channel members.
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14. Trade shows and conventions:
a.
Are generally the most important sources for finding new channel members.
b.
Are typically a waste of time when it comes to finding prospective channel
members.
c.
Are useful for finding channel members only in consumer goods industries.
d.
Are generally useful sources for finding new channel members.
e.
Have greatly declined as a source for finding new channel members.
15. In general, the most specific source of information on prospective channel members in a
particular industry is:
a.
The National Retail Federation.
b.
The appropriate trade association.
c.
The National Association of Wholesale Distributors.
d.
Industrial Distribution magazine.
e.
The Census of Wholesale Trade and the Census of Retail Trade.
16. Typically, the producers and manufacturers receiving the highest number of inquiries from
prospective channel members are:
a.
Those listed in the Verified Directory of Manufacturers’ Representatives.
b.
Those who advertise most heavily.
c.
Those who are generally considered to be the most prestigious in the industry.
d.
Those who offer the largest trade discounts.
e.
Those who presently have the fewest number of channel members.
17. A channel member uses __________ as a source for prospective channel members for
firsthand appraisal of the actual performance of the prospective channel members.
a.
the field sales force
b.
customers
c.
independent consultants
d.
all of the above
e.
none of the above
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18. Which of the following statements about channel member selection criteria lists is true?
a.
Channel member criteria lists rarely are used in practice.
b.
Generalized lists of criteria such as those of Pegram and Shipley are useless to the
channel manager.
c.
Once a company develops a list of criteria, it should not be changed.
d.
A changing environment may require the firm to alter its emphasis.
e.
A single criteria list is adequate for a firm under all possible conditions.
19. Generalized lists of channel member selection criteria:
a.
Can help the channel member to develop his or her own specialized list.
b.
Usually conflict with more specialized lists of criteria.
c.
Provide little room for flexibility.
d.
Are adequate without changes.
e.
Are relevant for all firms in every industry.
20. Which of the following statements is a false statement about Hlavacek and McCuistion’s
channel member selection criteria for technical product sold in industrial markets?
a.
Manufacturers should select distributors who carry a rather small array of
products.
b.
Financial capacity should not be overemphasized; sometimes less well-financed
distributors are “hungrier”.
c.
Aggressiveness of the distributor always is a vital criterion.
d.
A distributor that is a “small business” will be able to focus more attention on
specific products.
e.
A channel member’s market coverage should be a criterion.
21. Yeoh and Calantone identify six categories of selection criteria that reflect the _________
distributors must possess to be effective representatives in foreign markets.
a.
breadth of expertise
b.
knowledge
c.
core competencies
d.
technical skills
e.
efficiency skills
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22. The list of selection criteria offered by Pegram may be described as:
a.
A very long one.
b.
Empirically based.
c.
A hypothetical checklist.
d.
A non native set of criteria.
e.
Not very relevant to many firms today.
23. According to Pegram, the most frequently used criterion for judging the acceptability of
prospective channel members is:
a.
Distributor sales strength.
b.
Distributors’ product lines.
c.
Reputation.
d.
Credit and financial rating.
e.
Market coverage.
24. In the selection of foreign distributors as laid out by Yeoh and Calantone, which of the
following criteria was not cited in a study of foreign distributors’ selection processes
mentioned in the textbook?
a.
Ethnicity
b.
Commitment level
c.
Financial strength
d.
Marketing skills
e.
Product-related factors
25. _________ is the selection criterion that reflects a prospective intermediary’s enthusiasm,
initiative, and aggressiveness.
a.
Management ability
b.
Reputation
c.
Attitude
d.
Market coverage
e.
Risk
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26. The selection criterion that refers to __________ reflects the degree to which there is a
continuity of management if the principal dies.
a.
management ability
b.
management succession
c.
capability
d.
reputation
e.
performance
27. A prospective channel member’s ability to blanket the geographical territory that the
manufacturer would like to reach is referred to as the __________ criterion.
a.
market segmentation
b.
intensive distribution
c.
market coverage
d.
territorial restriction
e.
geographical flexibility
28. A prospective wholesaler channel member’s sales strength can be measured by:
a.
The number and quality of its sales reps.
b.
The geography covered by the sales force.
c.
The quality of its current product lines.
d.
Gross profit.
e.
Total sales revenue.
29. Selecting channel members with market coverage overlap is especially problematic for:
a.
Manufacturers in highly intensive distribution.
b.
Manufacturers in highly selective distribution.
c.
Manufacturers of high technology products.
d.
Manufacturers with large product lines.
e.
It is equally troublesome for all of the above.
30. Which of the following is not a good inducement that manufacturers might offer prospective
channel members?
a.
Friendly relationships
b.
Good, profitable product lines
c.
Financial support
d.
Advertising support
e.
Management assistance
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31. Securing the prospective channel members as actual channel members is usually the:
a.
First step in the selection process.
b.
Second step in the selection process.
c.
Third step in the selection process.
d.
Fourth step in the selection process.
e.
Cannot be determined because it varies so much from case to case.
32. The trade magazine advertisement for Snyder’s pretzel manufacturer offers _______ as an
inducement to prospective channel members.
a.
advertising support
b.
fair dealing practices
c.
the quality and variety of its product line
d.
strong partnership agreements
e.
management assistance
33. According to Pegram’s research, ______________ between manufacturers and intermediaries
have become the norm for relationships in many channels of distribution.
a.
high trade discount structure
b.
exclusive dealing arrangements
c.
partnerships or strategic alliances
d.
special promotional deals
e.
substantial monetary incentives
34. One of the best measures of a manufacturer’s commitment to helping channel members to
achieve their objectives is by:
a.
Offering them a very high quality product line.
b.
Offering the lowest prices.
c.
Offering a legal contract to spell out the nature of the channel relationship.
d.
Offering a management assistance program.
e.
Offering large cooperative advertising allowances.
Marketing Channels 8e
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35. In using its product line to secure new channel members, it is most important for the
manufacturer to stress:
a.
The functionality of the product.
b.
The quality of the product.
c.
The customer benefits of the product.
d.
The depth and breadth of the product line.
e.
The profit potential of the product.
36. Which company in the text advertised in a trade magazine offering a “Category Management
Partner” program as an inducement to potential channel members?
a.
Gillette
b.
Dell Computer
c.
Snyder’s
d.
3M
e.
Thermoid