Channel Strategy and Design Exam Review
Course Introduction
Channel Strategy and Design explores the principles, frameworks, and tools required to effectively develop, manage, and optimize marketing and distribution channels. This course covers the strategic decisions involved in selecting channel partners, designing channel structures, and aligning channel strategies with overarching business objectives. Students will gain insights into multi-channel and omni-channel approaches, channel conflict resolution, performance measurement, and the impact of digital transformation on distribution networks. Through case studies and real-world examples, the course emphasizes how to create value for customers and organizations by designing efficient and innovative channel systems.
Recommended Textbook
Marketing Channel Strategy 8th Edition by Robert Palmatier
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14 Chapters
700 Verified Questions
700 Flashcards
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Page 2
Chapter 1: Understanding Channel Strategies
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Which statement is most likely true about a marketing channel system?
A) Firms in the marketing channel typically work independently.
B) Modifying a channel system is usually a simple, inexpensive task.
C) Marketing channels represent a very small portion of the world's business.
D) Most marketing channel systems are easily duplicated by other firms in an industry.
E) Efficient marketing channels reduce distribution costs and increase customer satisfaction.
Answer: E
Q2) Which channel function most likely plays a role in all value-added activities of a marketing channel system?
A) information sharing
B) promotion
C) negotiation
D) payment
E) ordering
Answer: A
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Chapter 2: End-User Analysis: Segmenting and Targeting
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Sample Questions
Q1) Which of the following is NOT considered a service output?
A) product price
B) bulk breaking
C) product variety
D) delivery time
E) information sharing
Answer: A
Q2) How does Cabela's most likely facilitate excellent customer service?
A) developing information systems
B) hiring knowledgeable workers
C) providing product variety
D) offering free delivery
E) keeping prices low
Answer: B
Q3) End-users represent the demand component of marketing channels.
A)True
B)False
Answer: True
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Chapter 3: Channel Analysis: Auditing Marketing Channels
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Sample Questions
Q1) Violations of the equity principle are a common cause of channel conflicts.
A)True
B)False
Answer: True
Q2) Tyrone,the channel manager for Federated Batteries,has built a channel that meets service output demands at a minimum cost,and he has closed all service and cost gaps.The channel created by Tyrone is best described as ________.
A) functional
B) speculative
C) free riding
D) zero-based
E) fully integrated
Answer: D
Q3) When using an efficiency template,the first step is to ________.
A) compare the compensation of channel members
B) determine the weights of each channel function
C) distinguish between environmental and managerial bounds
D) calculate a weighted average of function performance levels
E) quantify retail and wholesale price points using gap analysis
Answer: B
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Chapter 4: Make Versus Buy Channel Analysis
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Sample Questions
Q1) The greater the value of company-specific capabilities,the greater the economic rationale for the manufacturer to vertically integrate.
A)True
B)False
Q2) All of the following are the major forms of company-specific distribution capabilities EXCEPT ________.
A) site specificity
B) dedicated capacity
C) idiosyncratic knowledge
D) customized physical facilities
E) upstream brand strategy and equity
Q3) A firm should most likely outsource channel functions when the ________.
A) function requires company-specific capabilities
B) firm has resources that cannot be used for other purposes
C) firm cannot afford the set-up costs of creating an internal operation
D) firm has resources that are demanded in a volatile and prosperous market
E) firm's brand equity relies on customer experiences with downstream service providers
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Chapter 5: Designing Channel Structures and Strategies
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Sample Questions
Q1) Dual channels most likely enable a manufacturer to ________.
A) offer more coverage to downstream channel members
B) shift business from one channel to the other
C) sell more fast moving consumer goods
D) forecast upstream supply needs
E) monitor promotional activities
Q2) Which of the following most likely occurs when a channel member is the exclusive distributor for a manufacturer?
A) The channel member gains reward power over the manufacturer.
B) The manufacturer attempts to influence the channel member's behavior.
C) The manufacturer gains idiosyncratic knowledge about the channel member.
D) The manufacturer allows the channel member to make all marketing decisions.
E) The channel member and the manufacturer form a joint partnership to share profits.
Q3) A resale price maintenance policy most likely allows a manufacturer to ________.
A) regulate financing options
B) monitor price negotiations
C) utilize price promotions
D) seek category exclusivity
E) set a price floor
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Chapter 6: Retailing Structures and Strategies
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Sample Questions
Q1) If a retailer needs to evaluate its performance according to the return it earns on inventory investments,which of the following would be most useful?
A) SPM
B) ECR
C) GMROI
D) GMROL
E) GMROS
Q2) In most high-service retailing systems,margins are ________,and turnover is
A) low; high
B) high; low
C) low; low
D) high; high
E) low; non-existent
Q3) What is the most likely buying motive for a retail sale?
A) personal satisfaction
B) institutional use
C) business profit
D) channel power
E) industrial use
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Chapter 7: Wholesaling Structures and Strategies
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Sample Questions
Q1) Pittsfield Fabric,a U.S.manufacturer,is considering the idea of selling fabrics to European consumers.Which type of intermediary would most likely assist Pittsfield with this plan?
A) export trading company
B) master distributor
C) commission agent
D) franchiser
E) retailer
Q2) Which statement best explains the success of consumer co-ops in the French food sector?
A) Grocery chains in France have historically supported direct selling and local food sourcing.
B) French consumers want intermediaries to conduct more safety inspections of food and wine.
C) Many French shoppers demand regional, organic foods and oppose conventional farming.
D) French shoppers appreciate the lower prices of food purchased directly from farmers.
E) Many French consumers support the government and its food standardization tactics.
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Chapter 8: Franchising Structures and Strategies
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Sample Questions
Q1) A franchisee engaging in opportunistic holdup with a franchisor would most likely
A) demand tie-in sales
B) request lower royalties
C) negotiate for rent relief
D) invest in equipment
E) share profits
Q2) Multi-unit franchising is becoming increasingly common.Briefly explain the functionality and advantages of multi-unit franchising.
Q3) The practice of licensing an entire way of doing business under a brand name in exchange for ongoing fees from franchisees is known as ________.
A) B2B licensing
B) multi-unit franchising
C) business format franchising
D) authorized franchise marketing
E) intellectual property franchising
Q4) What is a plural form system? What are the benefits of such a system?
Q5) Differentiate between business format franchising and authorized franchise systems.
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Chapter 9: Emerging Channel Structures and Strategies
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Sample Questions
Q1) Which characteristic of developing markets most likely appeals to firms from developed markets?
A) strong infrastructures
B) minimal economic risks
C) high numbers of retirees
D) significant competition levels
E) large and growing populations
Q2) What is the world's largest market for e-commerce sales?
A) Japan
B) China
C) Germany
D) United States
E) United Kingdom
Q3) How has the Internet been an "enabling technology" in the music industry?
A) increased demand for the services of local music retailers
B) removed the product aspect from music offerings
C) reduced the cost and ease of downloading music
D) increased the need for more intermediaries
E) consolidated the efforts of music retailers
Q4) What factors motivate firms to shift from selling products to selling services?
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Chapter 10: Managing Channel Power
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Sample Questions
Q1) What type of power involves giving a benefit in return for a channel member's agreement to alter its behavior?
A) reward
B) coercive
C) expert
D) referent
E) legitimate
Q2) How did Gore-Tex establish legitimate power?
A) patent protection
B) franchise agreements
C) industry norms
D) hierarchical authority
E) market experience
Q3) Which method of measuring dependence focuses on how power is amassed?
A) percentage of profits
B) sales percentage
C) bottom-up approach
D) role performance
E) alternative scarcity
Q4) What is channel power? Why is channel power necessary?
Page 12
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Chapter 11: Managing Channel Conflict
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Sample Questions
Q1) ABC Manufacturing is experiencing channel conflict with one of its main retailers,EZ-Tools.ABC is focused on improving manufacturing processes,while EZ-Tools is focused on meeting customer needs and demands.What would most likely improve the situation between the channel members?
A) streamlined production efforts
B) frequent communication
C) intrachannel competition
D) increased promotions
E) intensive distribution
Q2) Gray marketing is most common for ________.
A) products that require service
B) outsourced products
C) manufacturing inputs
D) mature products
E) counterfeit goods
Q3) As with personal relationships,conflict within a marketing channel system is undesirable and a situation that should be avoided.
A)True
B)False
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Page 13
Chapter 12: Managing Channel Relationships
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Sample Questions
Q1) How did John Deere benefit from having strong,committed relationships with its dealer network?
A) The firm convinced dealers to service John Deer products sold by Home Depot.
B) The firm transitioned dealers from homeowner sales to commercial farm sales.
C) The firm persuaded dealers to promote Home Depot through their Web sites.
D) The firm used reward power to convert local dealers into franchises.
E) The firm demanded that small dealers consolidate in urban areas.
Q2) Which of the following would LEAST likely increase continuity expectations in a channel relationship?
A) Two-way communication
B) Reputation for fair dealing
C) Combined stakes
D) Imbalanced power
E) Trust
Q3) Some manufacturers are not interested in committed relationships with downstream channel members because they view independent intermediaries as competition.
A)True
B)False
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Page 14
Chapter 13: Managing Channel Policies and Legalities
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Sample Questions
Q1) Refusal to deal is a tool that allows a channel member to exert ________ power.
A) legitimate
B) coercive
C) reward
D) market
E) monopoly
Q2) According to antitrust enforcement agencies,selective and exclusive coverage policies are most similar to ________.
A) price maintenance
B) territorial restrictions
C) overt price discrimination
D) industrial slotting allowances
E) illegal interbrand competition
Q3) Which case established the per se illegality of maximum resale price maintenance?
A) Monsanto Company v. Spray-Rite Service Corporation
B) Business Electronics Corp. v. Sharp Electronics
C) Texaco Inv. v. Hasbrouck
D) State Oil Co. v. Khan
E) Albrecht v. Herald
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Page 15
Chapter 14: Managing Channel Logistics
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Sample Questions
Q1) Unlike ECR,QR emphasizes ________.
A) waste reduction
B) inventory management
C) flexible manufacturing
D) data transmission and analysis
E) interfirm cooperation and teamwork
Q2) In comparison to traditional logistics,reverse logistics is more predictable in terms of timing and quality levels.
A)True
B)False
Q3) According to Hau L.Lee,what should be the objective of a supply chain?
A) Focusing on efficiency
B) Obtaining fast turnaround
C) Gaining triple-A properties
D) Achieving significant cost savings
E) Benefiting from information technology
Q4) What is efficient consumer response (ECR)? What changes must be made by a supply chain manager to implement ECR?
Q5) Contrast the requirements for supplying functional goods and innovative goods.
Page 16
Q6) What are the similarities and differences between ECR and QR systems?
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