

Channel Management Test Bank
Course Introduction
Channel Management explores the strategies, structures, and processes involved in designing, implementing, and managing marketing channels that deliver products and services from producers to consumers. The course covers the selection and motivation of channel partners, conflict resolution, channel integration, and performance evaluation. Students will analyze channel dynamics in various industries, examine global distribution networks, and assess the impact of technological advancements and emerging trends on traditional and digital channels. Key topics include supply chain management, channel power and relationships, retailing, wholesaling, franchising, and the role of intermediaries in value creation.
Recommended Textbook
Marketing Channels 8th Edition by
Bert Rosenbloom
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18 Chapters
800 Verified Questions
800 Flashcards
Source URL: https://quizplus.com/study-set/1903

Page 2

Chapter 1: Marketing Channel Concepts
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/37934
Sample Questions
Q1) According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an emphasis on:
A)Pricing strategy.
B)Channel strategy.
C)Promotion strategy.
D)Product strategy.
E)Supply strategy.
Answer: B
Q2) The only major difference between the specialization and division of labor principle as applied to a production versus a distribution situation is:
A)Production tasks are often allocated intra-organizationally, while distribution tasks are frequently allocated inter-organizationally.
B)Distribution tasks are much less amenable to specialization and division of labor than production tasks.
C)Only logistics tasks are capable of being broken down for specialization.
D)Production tasks are more easily divided into separate tasks.
E)It is not possible to attain an optimal allocation of distribution tasks.
Answer: A
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Chapter 2: The Channel Participants
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51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/37935
Sample Questions
Q1) The term "gatekeeper" as used in the textbook refers to
A)The power of manufacturers in the channel.
B)The power of retailers in the channel.
C)The power of consumers in the channel.
D)The power of suppliers in the channel.
E)The power of manufacturer's representatives in the channel.
Answer: B
Q2) Which of the following is a false statement about the manufacturer's sales branches of Bella Manufacturing, Inc.?
A)They are all owned by Bella.
B)The branches are operated by Bella.
C)The branches are physically separate from Bella's manufacturing plants.
D)Their main purpose is to distribute the manufacturer's products.
E)The branches service regions of the country.
Answer: E
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4
Chapter 3: The Environment of Marketing Channels
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63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/37936
Sample Questions
Q1) Computerized inventory control systems available to all channel members will mean:
A)Increased dominance by manufacturers over retailers.
B)More time for the manufacturer to plan production schedules.
C)Slower responses by retailers to slow-moving items.
D)Decreased profits.
E)Better forecasting techniques.
Answer: B
Q2) Competition between Kmart and Wal-Mart is an example of:
A)Horizontal competition.
B)Intertype competition.
C)Vertical competition.
D)Channel system competition.
E)Horizontal-vertical competition.
Answer: A
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5
Chapter 4: Behavioral Processes in Marketing Channels
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53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/37937
Sample Questions
Q1) 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.
Q2) 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.
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6

Chapter 5: Strategy in Marketing Channels
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44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/37938
Sample Questions
Q1) The principal lesson BMW learned from Michael Dell of Dell Computer is:
A)Customers are looking for the lowest price.
B)Highly standardized products sell best.
C)Custom made distribution can attract customers.
D)Customers who need no technical support will buy from BMW.
E)Insecure customers who are afraid to venture into dealerships will buy from BMW.
Q2) After the channel has been designed, the channel manager still has to address fundamental strategic questions regarding all of the following except:
A)The closeness of the relationship with the channel members.
B)How to motivate channel member cooperation.
C)How to use the marketing mix.
D)The intensity of distribution.
E)How channel members can cooperate in achieving the manufacturer's objectives.
Q3) Volvo GM Heavy Truck Corporation cited in the text illustrates:
A)That aggressive pricing is key.
B)Customer service is key.
C)Heavy inventory carried by dealers is a must for good service.
D)That all too often customers are too spread out.
E)Keeping high levels of inventories is crucial to good customer service.
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Page 7

Chapter 6: Designing Marketing Channels
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59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/37939
Sample Questions
Q1) The most difficult problem with making the financial approach to choosing a channel structure operational is:
A)The reluctance on the part of firms to use it.
B)Obtaining accurate estimates of future revenues and costs from alternative channel structures.
C)The great expense involved in employing this method.
D)The inadequate capacity of existing computer systems to handle the mass of data involved.
E)Poor attitudes on the part of managers toward using it.
Q2) In the weighted factor score approach, all of the following are criteria for choosing channel structure except:
A)Decision factors must be less than seven.
B)Factors are stated explicitly.
C)Decision factors are weighted.
D)Each channel alternative is rated.
E)An overall weighted factor score is computed.
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Chapter 7: Selecting the Channel Members
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36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/37940
Sample Questions
Q1) 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
Q2) 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.
Q3) 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.
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Chapter 8: Target Markets and Channel Design Strategy
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43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/37941
Sample Questions
Q1) If market geography and market size are both increasing, the average cost of serving buyers is sure to:
A)Increase.
B)Decrease.
C)Remain the same.
D)Cannot be determined with the information provided.
E)Increase at a faster rate than additional revenues.
Q2) What presents the most formidable challenges for distribution channels when firms deal with distant markets by selling products on the Internet?
A)Foreign exchange and brand recognition
B)Language barriers and logistics
C)Shipping and packing products
D)Accurate completion of purchase orders and payment
E)Fulfillment logistics and customer service
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10

Chapter 9: Motivating the Channel Members
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47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/37942
Sample Questions
Q1) 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.
Q2) The underlying basis of all attempts to provide leadership in the channel is:
A)Power.
B)Trust.
C)Respect.
D)Anxiety.
E)Fear.
Q3) 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.
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Page 11

Chapter 10: Product Issues in Channel Management
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/37943
Sample Questions
Q1) A product differentiation strategy includes all of the following except:
A)It is based on differences in physical characteristics.
B)It is intended to get consumers to perceive a significant difference.
C)It can require channel member cooperation in the way the product is displayed, sold and serviced.
D)Prices to consumers may be higher.
E)Gross profit margins will increase through the life of the product.
Q2) The major strategic emphasis for channel managers to make possible changes to the channel structure or to select different types of intermediaries occurs in the _______ product life cycle stage.
A)introduction
B)growth
C)maturity
D)decline
E)stagnation
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Chapter 11: Pricing Issues in Channel Management
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/37944
Sample Questions
Q1) Which of the following is not a potential reaction by channel managers to a manufacturer's cut in price?
A)The price cut may decrease sales volume and profits.
B)The price cut may affect the product's quality image, so channel managers may become reluctant to deal with the product.
C)Channel managers may be concerned about the image of their own firms.
D)They may be concerned about a loss of inventory value.
E)Channel managers may be concerned about future pricing policies.
Q2) A customer buying a branded product from a low-priced distributor likely is:
A)Getting a counterfeit product.
B)Buying in the gray market.
C)From an authorized dealer with high-volume and operating economies.
D)Purchasing from a free rider.
E)There is no way to tell from the information given.
Q3) The "price" paid to gain channel member support must emphasize:
A)The job performed by the channel members.
B)What the manufacturer believes to be fair and reasonable.
C)A fair price as perceived by the channel member.
D)Trade discounts.
E)The value of the product.
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Chapter 12: Promotion Through the Marketing Channel
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/37945
Sample Questions
Q1) Sales quotas are a way for the manufacturer to communicate:
A)Satisfaction with the channel member's past performance.
B)Information regarding the channel member's territory sales potential.
C)The importance of the manufacturer's product to the channel member.
D)The importance of the firm's sales goals.
E)Goals and to motivate the salesperson.
Q2) Which of the following is a common abuse of cooperative advertising money by retailers?
A)Poor promotional planning.
B)Retailers not agreeing to branding strategy of manufacturer.
C)Retailers buying newspaper space at rates lower than what they bill manufacturers.
D)Not setting up point of purchase displays properly.
E)Resisting manufacturer control over the advertising campaign.
Q3) Slotting fees are most commonly used in the ________ industry.
A)pharmaceutical
B)grocery
C)automobile
D)retail liquor
E)bakery
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Page 14
Chapter 13: Logistics and Channel Management
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54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/37946
Sample Questions
Q1) Logistics involves planning, implementing, and controlling the __________ of materials and final goods from points of origin to points of use to meet __________ at a __________.
A)transportation; inventory requirements; low cost
B)physical flows; customers needs; profit
C)inventory; order specifications; defined cost
D)shipment; inventory levels; profit
E)movement; production requirements; high level of efficiency
Q2) According to the text, one of the most effective ways of monitoring the results experienced by channel members in the use of a logistics program is:
A)To use the grapevine.
B)To rely solely on the sales force.
C)To conduct a survey of a sample of channel members.
D)To perform a sales analysis.
E)Analyze orders that are placed by channel members.
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15

Chapter 14: Evaluating Channel Member Performance
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/37947
Sample Questions
Q1) Which of the following is not a factor affecting the scope and frequency of channel member evaluations?
A)The level of expertise of the channel managers
B)Relative importance of channel members
C)Degree of manufacturer's control over the channel members
D)Nature of the product
E)Number of channel members
Q2) Channel member performance audits:
A)Should be conducted for all channel members at all levels at the same time.
B)Should be conducted for all channel members at one level at the same time.
C)Should be done for all wholesalers or retailers of the same type at the same time.
D)Should be conducted for only one channel member at a time.
E)Should be periodic and comprehensive.
Q3) A major disadvantage of a separate performance evaluation is that:
A)It is the most complex to perform.
B)It takes a long time to perform.
C)It offers little insight into overall channel member performance.
D)It is difficult to analyze.
E)Is useful when channel members are small.
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Page 16

Chapter 15: Electronic Marketing Channels
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34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/37948
Sample Questions
Q1) If sellers list their products on the Internet and if customers who locate these products at the firm's Web site still have to use the telephone to order them:
A)This is still considered to be an electronic marketing channel.
B)It removes two steps from the electronic marketing channel.
C)Then all the conditions for the definition of electronic marketing have not been met.
D)Customers are considered electronically illiterate.
E)Customers are being efficient in their ordering.
Q2) With regard to channel management, the availability of the Internet means that:
A)Channel management can move to "automatic pilot".
B)Coordinating the marketing mix is not as crucial.
C)Decisions concerning channels will be less complicated.
D)Decisions concerning channels will be more complex.
E)Gaining information about channel members will be easier.
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Chapter 16: Franchise Marketing Channels
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/37949
Sample Questions
Q1) Which of the following statements is <b>true</b> about franchising?
A)It is a channel used exclusively for distribution of consumer durable goods.
B)The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts.
C)Generally, franchise marketing channels are more closely knit (i.e., closer relationships) than conventional channels.
D)The challenges managing a franchise channel are fundamentally the same as those encountered in conventional channels.
E)All of the above statements are true.
Q2) Product distribution franchises:
A)Are a new form of Internet franchise.
B)Mean franchisees license its trademarked product (or services) to franchisors.
C)Suggests the franchisor provides relatively little in the way of management assistance to the franchisees.
D)Exist only in industries that manufacture appliances.
E)Are rare in automobile and soft drink channels.
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Chapter 17: Marketing Channels for Services
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38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/37950
Sample Questions
Q1) The service sector of the U.S. economy is approximately:
A)The same size as the manufacturing sector.
B)One-and-one-half times the size of the manufacturing sector.
C)Three times as large as the manufacturing sector.
D)Twice the size of the manufacturing sector.
E)One-half the size of the manufacturing sector.
Q2) Providers of executive search, taxi, health care and other highly customized services:
A)Must rely on repetitive processes.
B)Can easily develop a channel design.
C)Face increased difficulty in the designing and operating channels.
D)Do not need to be as concerned with efficiency since they charge higher prices.
E)Have a long channel design.
Q3) All of the following are true for services as compared to goods except:
A)Little or no inventories are required to offer services.
B)Supervisions for services is more specialized.
C)Emphasis on quality is greater.
D)Service costs are more standardized; therefore, pricing is easier.
E)Value is more difficult for consumers to determine.
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Page 19

Chapter 18: International Channel Perspectives
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38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/37951
Sample Questions
Q1) Which of the following is considered a foreign production approach to international marketing?
A)Trading company
B)Joint venture
C)Overseas marketing subsidiary
D)Export management company
E)Using trading intermediaries
Q2) By the late 1990s, the devaluation of many Asian currencies had made the U.S. dollar:
A)Weaker against the Asian currencies.
B)Stronger against the Asian currencies.
C)Little changed against the Asian currencies.
D)On a par with Asian currencies.
E)More easily convertible into Asian currencies.
Q3) U.S. manufacturers are looking to international markets because:
A)Of slower growth in domestic markets.
B)Foreign markets have less political risk.
C)Of government regulations.
D)New customers to buy products.
E)No competition in foreign markets.
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Page 20