9-1
Chapter 9—Motivating the Channel Members
MULTIPLE CHOICE
1. The term securing the cooperation of channel members suggests that:
a.
Once the channel has been well designed, channel member cooperation will follow
as a matter of course.
b.
The selection of good channel members in the first place assures a high degree of
cooperation.
c.
Administrative actions by the channel manager are necessary to develop channel
member cooperation.
d.
The channel manager must avoid conflict at all cost.
e.
The channel manager must attempt to gain total control of the channel.
2. At the beginning stage of managing the marketing channel, it is assumed that:
a.
Channel members have already been evaluated.
b.
The channel design decision process has already taken place.
c.
Channel members have already been motivated.
d.
A problem has been identified and needs to be solved.
e.
Channel members are ready and willing to cooperate in making changes.
3. Before the channel manager can successfully motivate the channel members, he or she must:
a.
Perform a channel audit.
b.
Attempt to learn about channel member needs and problems.
c.
Establish generous trade discounts.
d.
Develop many cooperative programs.
e.
Set up a distribution programming arrangement.
4. When securing the cooperation of channel members, the channel manager is:
a.
Selecting the channel members.
b.
Evaluating channel member performance.
c.
Motivating channel members.
d.
Designing the channel.
e.
Adapting the channel to the environment.
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5. Which of the following is not one of McVey’s propositions about the behavior of
intermediaries?
a.
The intermediary is a link in a chain forged by the manufacturer.
b.
The intermediary acts primarily as a purchasing agent for his customers.
c.
The intermediary attempts to weld all of his offerings into a family of items that he
can sell in combination.
d.
Unless given incentive to do so, intermediaries will not maintain separate records
by brands sold.
e.
The intermediary acts secondarily as a selling agent for suppliers.
8. McVey’s propositions imply that manufacturers:
a.
Need to better understand the role of all channel members.
b.
Should always be looking for ways to motivate channel members.
c.
Are unaware of or insensitive to the needs and problems of channel members.
d.
Should confer with channel members prior to making any changes to the
distribution process.
e.
Do not adequately use the information and data provided by intermediaries.
7. In a marketing channel communication system, indirect-flow information media include all of
the following except:
a.
Product catalogs.
b.
Trade journals.
c.
Government publications.
d.
Marketing research agencies.
e.
Advertising agencies.
8. All of the following are direct-flow information media in a channel communication system
except:
a.
Salespeople.
b.
Merchandise displays on sales floors.
c.
Trade journals.
d.
Company magazines.
e.
Labels, tags, and warranty cards.
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9.Marketing channel communications systems:
a.
Usually are as formally planned and carefully constructed as channel structure.
b.
Often need to be supplemented by other approaches for learning channel members’
needs and problems.
c.
Do not include many participants beyond the channel members.
d.
Evolve in a rational manner over a short period of time.
e.
Allow the channel manager to rely on the flow of information from channel
members.
10. According to the text, research studies dealing with channel members conducted by the
manufacturer are:
a.
Relatively rare.
b.
Never done at all.
c.
Conducted only by large manufacturers.
d.
Conducted too often.
e.
Fairly common.
11. Which of the following is not one of the methods suggested for learning about channel
member needs and problems?
a.
Channel inspection tours
b.
Research studies of channel members
c.
Research studies by outside parties
d.
Marketing channel audits
e.
Distribution advisory councils
12. Some producers use outside marketing research firms to learn about channel members’ needs
and wants because:
a.
the use of outside parties generally is less expensive.
b.
outside parties generally do the job much more quickly.
c.
a higher degree of objectivity is likely.
d.
channel members will be provide more complete answers if an outside party is
conducting a survey.
e.
the internal marketing research department members tend to focus on other types
of projects.
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13. Anheuser-Busch’s “100 percent share of mind” program is most consistent with beer
distributors:
a.
Carrying many craft beers.
b.
Participating in all suppliers’ promotions.
c.
Following an exclusive dealing arrangement.
d.
Cutting prices.
e.
Stocking a full range of different brands.
14. A periodic gathering of data on how channel members perceive the manufacturer’s marketing
program, its component parts, where the relationships are strong and weak, and what is
expected of the manufacturer to make the channel relationship viable and optimal, is known
as:
a.
A cooperative approach to channel analysis.
b.
Distribution programming.
c.
Channel analysis by outside parties.
d.
A marketing channel audit.
e.
Distributor advisory council.
15. Which of the following areas is not one found by research to be appropriate for study in a
marketing channel audit?
a.
Pricing policies and allowances
b.
Extent and nature of the product line
c.
New products and their marketing development through promotion
d.
Sales force performance in servicing the accounts
e.
Customer’s satisfaction with new products being introduced
16. Which of the following is a false statement about marketing channel audits?
a.
They should be conducted at regular periods.
b.
Audits should cross-reference results by type of intermediary, geographic area,
sales volume and other relevant variables.
c.
Manufacturers can identify emerging issues as well as current perceptions.
d.
Audits aid manufacturers in determining what problems have already been solved.
e.
Manufacturers can gather information on how channel members perceive the
marketing program.
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17. Clayton Products, Inc. is considering establishing a Distributor Advisory Council. It can
expect that this council will provide all of the following advantages except:
a.
Improve overall channel communications.
b.
Provide a vehicle for identifying mutual needs and problems.
c.
Be quite simple to set up and require little ongoing management.
d.
Be part of Clayton’s overall motivation program.
e.
Provide for recognition of all channel members.
18. Which of the following is not typically mentioned as an advantage of distributor advisory
councils?
a.
They enable channel members to engage in price maintenance.
b.
They provide for face-to-face dialog.
c.
They provide a vehicle for learning about channel member needs and problems.
d.
They offer a “neutral” setting to discuss controversial issues.
e.
They provide for representation from the manufacturer as well as channel
members.
19. The most sophisticated approach to providing channel member support is the:
a.
Cooperative approach.
b.
Partnership approach.
c.
strategic alliance approach.
d.
distributor advisory council approach.
e.
distribution programming approach.
20. A basic tenet of virtually all programs of channel member support should be:
a.
That they be low in cost.
b.
That they include a substantial variety of cooperative deals.
c.
That they provide for high trade discounts to channel members.
d.
That they emphasize the specific needs and problems of the channel members.
e.
That they be ad hoc in nature to provide flexibility in handling problems.
21. Which of the following represents a ranking of channel member support programs from the
least comprehensive to the most comprehensive?
a.
Partnership, cooperative, distribution programming
b.
Distribution programming, partnership, cooperative
c.
Cooperative, distribution programming, partnership
d.
Partnership, distribution programming, cooperative
e.
Cooperative, partnership, distribution programming
Motivating the Channel Members
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22. All of the following are cooperative programs usually aimed at retailers except:
a.
Advertising allowances.
b.
Payments for aisle displays.
c.
Training salespeople.
d.
Pre-ticketing.
e.
Coupon handling allowances.
23. Cooperative programs must be offered on a proportionally equal basis to all channel members
in the same class or they violate the:
a.
Sherman Antitrust Act.
b.
Federal Trade Commission Act.
c.
Robinson-Patman Act.
d.
Celler-Kefauver Act.
e.
Clayton Act.
24. In general, a good cooperative program has all of the following components except:
a.
It is simple.
b.
It conveys a sense of mutual benefit.
c.
It is straightforward.
d.
It provides incentives to channel members.
e.
It does not need to include retail channel members.
25. Typically, __________ programs are on-again/off-again while __________ programs stress a
continuing relationship.
a.
programmed merchandising; distribution programming
b.
cooperative; strategic alliance
c.
dealer partners; distribution partnerships
d.
cooperative; dealer advisory
e.
agent; joint venture
26. Webster’s phases in the development of a partnership arrangement include:
a.
A statement of each partner’s specific tasks and role in the partnership.
b.
An assessment of channel members’ capabilities.
c.
Continual appraisal of the appropriateness of channel policies.
d.
An explicit statement of channel policies.
e.
An analysis of channel members’ strengths and weaknesses.
Marketing Channels 8e
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27. With inter-firm relationships, channel members become strategically integrated because they:
a.
Aid each other in setting corporate objectives.
b.
Have an explicit and acknowledged stake in the other’s success.
c.
Have increased knowledge of the other firm’s operations.
d.
Share financial information through the computer network.
e.
Work together to re-state each member’s corporate mission statement.
28. ___________ is the term used to describe strategic alliances that are formed as a part of an
Internet strategy.
a.
Electronic partnership
b.
Internet partnership
c.
Web alliances
d.
E-alliances
e.
B2B
29. Which of the following is not an issue that needs to be addressed in e-alliances?
a.
Trust among alliance members
b.
Structure of the alliance
c.
Protecting each firm’s interests
d.
Developing commitment among alliance members
e.
Gathering information about alliance members’ operations
30. Wal-Mart stays in touch with Procter & Gamble by all of the following except:
a.
Daily meetings between managers of both companies.
b.
By having Procter & Gamble executives on-site at Wal-Mart’s headquarters.
c.
Through frequent communications about new products.
d.
EDI.
e.
Emphasizing close working relationships.
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31. The partnership approach as applied to the marketing channel means a:
a.
Legal partnership arrangement.
b.
Supportive relationship between channel members based on a careful delineation
of their mutual roles in the channel.
c.
True 50-50 sharing of the costs of all programs aimed at promoting the
manufacturer’s product.
d.
Reciprocal arrangement whereby the channel members both buy from and sell to
each other.
e.
Very heavy use of cooperative programs, all of which are paid for on an equal
basis between the manufacturer and the channel members.
32. A partnership in the context of marketing channels is __________ legal partnership.
a.
the same as a
b.
must be based on a
c.
not related to a
d.
in effect only after the firm has created a
e.
much easier to create than a
33. The relationships between Procter & Gamble and Wal-Mart, Black & Decker and its
distributors, and Rust-Oleum and its distributors all are examples of:
a.
Strategic alliances.
b.
Distribution programming agreements.
c.
Programmed merchandising agreements.
d.
Exclusive “A” location agreements.
e.
Long term partnerships.
34. Distribution programming may be defined as:
a.
The use of the computer in channel management.
b.
The use of many different types of cooperative programs.
c.
A comprehensive program for the promotion of a product through the channel.
d.
A contracted channel system.
e.
An agreement to distribute products in all of a retailer’s stores.
Marketing Channels 8e
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35. The first step in developing a distribution program is an analysis by the manufacturer of
__________ and the level of support the manufacturer needs from channel members.
a.
target market needs
b.
reseller capabilities
c.
financial goals
d.
marketing objectives
e.
the amount and location of display space
36. Distribution programming is the __________ form of channel member support.
a.
simplest
b.
most expensive
c.
easiest to establish
d.
most comprehensive
e.
limited
37. Ethan Allen Interiors Inc., cited in the text, best illustrates the _____________ approach to
motivating channel members.
a.
distribution programming approach
b.
ad hoc
c.
cooperative
d.
partnership
e.
price sensitivity
38. Virtually all of the policy options for developing a distribution programming arrangement can
be categorized into the following three major groups:
a.
Price concessions, financial assistance, and protection.
b.
Financial assistance, protection, and product planning.
c.
Physical distribution, protection, and financial assistance.
d.
Cooperative advertising, price concessions, and product concessions.
e.
Partnership arrangements, price concessions, and protection.
39. Consignment selling, liberal returns allowances, and rebate provisions are examples of
__________ in a distribution programming arrangement.
a.
financial assistance
b.
protective provisions
c.
reciprocal arrangements
d.
conflict-generating mechanisms
e.
price concessions
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40. A detailed statement covering the manufacturer’s policies in most of the relevant areas of its
relationship with channel members is referred to as a:
a.
Franchise contract.
b.
Reciprocal trade deal.
c.
Cooperative agreement.
d.
Statement of channel member partnership.
e.
Programmed merchandising agreement.
41. A typical Programmed Merchandising Agreement contains all of the following major
categories except:
a.
Responsibilities and due dates.
b.
Capital requirement plan.
c.
Advertising and promotion plan.
d.
Inventory plan.
e.
Merchandising goals.
42. A distribution programming approach to motivating channel members means:
a.
The extensive use of computers in virtually all aspects of channel management,
including logistics.
b.
A well organized and extensive product and sales training program.
c.
A comprehensive set of policies for the promotion of product through the channel.
d.
A reciprocal agreement whereby all channel members buy from and sell to each
other.
e.
A precise statement of incentives available to channel members.
43. In the context of the marketing channel, control may be defined as:
a.
The ability to predict events or to achieve a desired outcome.
b.
The use of power.
c.
Not having to accept any direction from the channel members.
d.
The use of a legal contract to secure channel member compliance.
e.
Setting incentive levels for channel members.
Marketing Channels 8e
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44. The underlying basis of all attempts to provide leadership in the channel is:
a.
Power.
b.
Trust.
c.
Respect.
d.
Anxiety.
e.
Fear.
45. In the context of the marketing channel, leadership may be defined as:
a.
The same thing as control.
b.
The application of sanctions.
c.
The ability to direct all of the activities of channel members.
d.
The use of power to achieve control.
e.
The use of charisma to motivate others to act.
46. Which of the following factors tend to limit the channel manager’s attempt to gain total
control of the channel?
a.
The tight alignment of firms
b.
Tthe lack of central direction
c.
A reward and penalty system that is not precise
d.
Highly coordinated planning of the entire system
e.
Few contractual agreements
47. The Cisco Systems’ example cited in the textbook showed that Cisco:
a.
Needed to get tougher with its “value-added channel resellers”.
b.
Needed to provide far more promotional incentives for dealers.
c.
Needed dealers to carry more inventory in stock to better serve customers.
d.
Had ineffective dealer motivation programs for years.
e.
Used training and certification of dealers to lead in the channel.