Question 1

The list of selection criteria offered by Pegram may be described as:

Accepted Answer

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.F) B) and D)
G) A) and E)

Question 2

Which company in the text advertised in a trade magazine offering a "Category Management Partner" program as an inducement to potential channel members?

Accepted Answer

A)  Gillette
B)  Dell Computer
C)  Snyder's
D)  3M
E)  ThermoidF) A) and D)
G) None of the above

Question 3

Yeoh and Calantone identify six categories of selection criteria that reflect the _________ distributors must possess to be effective representatives in foreign markets.

Accepted Answer

A)  breadth of expertise
B)  knowledge
C)  core competencies
D)  technical skills
E)  efficiency skillsF) A) and C)
G) B) and E) C

Question 4

The selection of channel members:

Accepted Answer

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.F) A) and D)
G) C) and D)

Question 5

According to Pegram, the most frequently used criterion for judging the acceptability of prospective channel members is:

Accepted Answer

A)  Distributor sales strength.
B)  Distributors' product lines.
C)  Reputation.
D)  Credit and financial rating.
E)  Market coverage.F) A) and B)
G) B) and E)

Question 6

_________ is the selection criterion that reflects a prospective intermediary's enthusiasm, initiative, and aggressiveness.

Accepted Answer

A)  Management ability
B)  Reputation
C)  Attitude
D)  Market coverage
E)  RiskF) C) and D)
G) A) and B)

Question 7

The selection of channel members according to the text is __________ the selection of employees.

Accepted Answer

A)  almost as important as
B)  as important as
C)  more important than
D)  of little importance compared with
E)  much easier thanF) A) and E)
G) B) and E)

Question 8

According to Pegram's research, ______________ between manufacturers and intermediaries have become the norm for relationships in many channels of distribution.

Accepted Answer

A)  high trade discount structure
B)  exclusive dealing arrangements
C)  partnerships or strategic alliances
D)  special promotional deals
E)  substantial monetary incentivesF) C) and D)
G) A) and B)

Question 9

One of the best measures of a manufacturer's commitment to helping channel members to achieve their objectives is by:

Accepted Answer

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.F) C) and D)
G) A) and B)

Question 10

Which of the following is not a good inducement that manufacturers might offer prospective channel members?

Accepted Answer

A)  Friendly relationships
B)  Good, profitable product lines
C)  Financial support
D)  Advertising support
E)  Management assistanceF) All of the above
G) A) and E) C

Question 11

Which of the following is an incorrect statement about manufacturers and producers choosing a two-level channel structure?

Accepted Answer

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.F) A) and D)
G) C) and D)

Question 12

Trade shows and conventions:

Accepted Answer

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.F) A) and D)
G) B) and E)

Question 13

In using its product line to secure new channel members, it is most important for the manufacturer to stress:

Accepted Answer

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.F) A) and E)
G) C) and D)

Question 14

The selection criterion that refers to __________ reflects the degree to which there is a continuity of management if the principal dies.

Accepted Answer

A)  management ability
B)  management succession
C)  capability
D)  reputation
E)  performanceF) A) and C)
G) D) and E)

Question 15

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.

Accepted Answer

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 UPCsF) C) and E)
G) A) and B) B

Question 16

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?

Accepted Answer

A)  Ethnicity
B)  Commitment level
C)  Financial strength
D)  Marketing skills
E)  Product-related factorsF) A) and B)
G) B) and C)

Question 17

If a channel has been structured to emphasize intensive distribution:

Accepted Answer

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.F) C) and E)
G) C) and D)

Question 18

A channel member uses __________ as a source for prospective channel members for firsthand appraisal of the actual performance of the prospective channel members.

Accepted Answer

A)  the field sales force
B)  customers
C)  independent consultants
D)  all of the above
E)  none of the aboveF) B) and D)
G) C) and E)

Question 19

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?

Accepted Answer

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.F) B) and D)
G) B) and C)

Question 20

Selecting channel members with market coverage overlap is especially problematic for:

Accepted Answer

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.F) B) and E)
G) C) and D)

Exam 7: Selecting the Channel Members

The list of selection criteria offered by Pegram may be described as:

Correct AnswerverifiedShow Answer

Which company in the text advertised in a trade magazine offering a "Category Management Partner" program as an inducement to potential channel members?

Correct AnswerverifiedShow Answer

Yeoh and Calantone identify six categories of selection criteria that reflect the _________ distributors must possess to be effective representatives in foreign markets.

Correct AnswerverifiedC

The selection of channel members:

Correct AnswerverifiedShow Answer

According to Pegram, the most frequently used criterion for judging the acceptability of prospective channel members is:

Correct AnswerverifiedShow Answer

_________ is the selection criterion that reflects a prospective intermediary's enthusiasm, initiative, and aggressiveness.

Correct AnswerverifiedShow Answer

The selection of channel members according to the text is __________ the selection of employees.

Correct AnswerverifiedShow Answer

According to Pegram's research, ______________ between manufacturers and intermediaries have become the norm for relationships in many channels of distribution.

Correct AnswerverifiedShow Answer

One of the best measures of a manufacturer's commitment to helping channel members to achieve their objectives is by:

Correct AnswerverifiedShow Answer

Which of the following is not a good inducement that manufacturers might offer prospective channel members?

Correct AnswerverifiedC

Which of the following is an incorrect statement about manufacturers and producers choosing a two-level channel structure?

Correct AnswerverifiedShow Answer

Trade shows and conventions:

Correct AnswerverifiedShow Answer

In using its product line to secure new channel members, it is most important for the manufacturer to stress:

Correct AnswerverifiedShow Answer

The selection criterion that refers to __________ reflects the degree to which there is a continuity of management if the principal dies.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedB

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?

Correct AnswerverifiedShow Answer

If a channel has been structured to emphasize intensive distribution:

Correct AnswerverifiedShow Answer

A channel member uses __________ as a source for prospective channel members for firsthand appraisal of the actual performance of the prospective channel members.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Selecting channel members with market coverage overlap is especially problematic for:

Correct AnswerverifiedShow Answer

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C

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C

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B

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