Channel Strategy and Management
Textbook Exam Questions
Course Introduction
Channel Strategy and Management explores the frameworks, principles, and tactics organizations use to design, manage, and optimize marketing and distribution channels. This course covers key topics such as channel structure, selection, and integration; the roles and motivations of channel members; channel conflict and its resolution; and contemporary issues like digital transformation and omnichannel strategies. Students will analyze real-world cases to understand how effective channel management can drive competitive advantage, improve customer reach, and enhance overall business performance in dynamic market environments.
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Marketing Channels A Management View 8th Edition by Bert Rosenbloom
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Chapter 1: Marketing Channel Concepts
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Sample Questions
Q1) Contactual efficiency viewed from the channel manager's perspective is:
A) The ratio of intermediaries to final customers.
B) The relationship between negotiation effort relative to achieving the distribution objective.
C) A relationship between negotiation efforts relative to specialization and division of labor.
D) The ratio of intermediaries to distribution tasks performed.
E) Cost savings in negotiating activities.
Answer: B
Q2) Consumers often view the marketing channel as simply:
A) Part of the manufacturer's organization.
B) A group of parasites who are mainly responsible for the high prices at the supermarket.
C) A lot of middlemen standing between them and the producer of the product.
D) The flow of goods and services through the economy.
E) The path taken by the title to goods as it moves through agencies that take title or facilitate its transfer.
Answer: C
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Chapter 2: The Channel Participants
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Q1) Procter & Gamble and Kellogg often face __________ average costs for distribution tasks when they attempt to perform them by themselves.
A) High
B) Low
C) Medium
D) Extremely low
E) Marginal
Answer: A
Q2) In recent years,trends in wholesaling are showing a tendency towards:
A) Consolidation.
B) A decrease in average size.
C) Becoming more like retailers than wholesalers.
D) Operating only in Cyberspace..
E) A decrease in average size..
Answer: A
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4
Chapter 3: The Environment of Marketing Channels
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Q1) From a marketing channels perspective,social networking has:
A) Caused consumers to make poor product choices.
B) Not lived up to the expectations that the Internet would allow consumers to be better informed.
C) Helped consumers make better product choices but has had no effect on their channel choices.
D) It has made consumers more demanding about the channels they choose.
E) All of the above.
Answer: D
Q2) For channel managers,which of the following is a variable in the external environment?
A) Interest rates
B) Emerging competitors
C) Birth rates
D) Inflation rates
E) All of the above
Answer: E
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Page 5
Chapter 4: Behavioral Processes in Marketing Channels
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Q1) Four fundamental behavioral processes relevant to the marketing channel are:
A) Role, power, conflict, and segmentation.
B) Social class, motivation, conflict, and power.
C) Control, cooperation, perception, and culture.
D) Power, conflict, role, and communication.
E) Conflict, power, communication, and group processes.
Q2) The social systems perspective of marketing channels is appropriate because:
A) The managerial perspective is less important than previously thought.
B) Specialization and division of labor apply more than ever in the 1990s.
C) The legal environment requires it.
D) Technology changes have to be offset.
E) A solely economic approach is not adequate for understanding channels.
Q3) Many manufacturers will listen to retailers' product demands because retailers are knowledgeable about consumer needs.Such retailers are in a good position to emphasize the use of:
A) Reward power.
B) Expert power.
C) Coercive power.
D) Referent power.
E) Legitimate power.
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Chapter 5: Strategy in Marketing Channels
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Q1) Many manufacturers have neglected distribution because:
A) Product, price and promotion are more difficult to control.
B) Independent channel members can be difficult to control.
C) It takes too long for distribution to impact market share.
D) The decisions are difficult to make.
E) It is hard to obtain the information.
Q2) The dynamic nature of channel management effectively mandates that to make distribution decisions,the channel manager:
A) Develop a "fire fighting" mentality to handle the almost constant change.
B) Utilize ad hoc committees to handle each unique situation as it arises.
C) Recognize that a large number and variety of channel members precludes developing effective guidelines for decision-making.
D) Formulate a marketing channel strategy.
E) Be reactive to changing market conditions.
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7
Chapter 6: Designing Marketing Channels
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Q1) Intensity:
A) Refers to the number of intermediaries at each level of the marketing channel.
B) Is generally classified as either intensive or selective.
C) Referes to the number of independent sales agents a manufacturer uses.
D) Kiosk retailers.
E) Picture-capable cell phones.
Q2) The distribution costing approach to choosing channel structure:
A) Requires almost no managerial judgment.
B) Requires specific factors to be identified.
C) Requires that management make some cost and revenue estimates.
D) Will, if done well, generally yield an optimal channel choice.
E) Assumes a three-level distribution structure.
Q3) 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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Page 8
Chapter 7: Selecting the Channel Members
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Q1) 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
Q2) 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.
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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Q1) The fact that South East Asia,as well as the former Eastern Bloc countries of Central and Eastern Europe have become important locations for emerging markets is most closely related to which dimension of the Framework for Market Analysis discussed in the text?
A) Market density
B) Market size
C) Market behavior
D) Market geography
E) Market heterogeneity
Q2) Changing market locations,resulting from geographical boundaries of existing markets expanding or the opening up of new,more distant markets,should signal the channel manager that:
A) Shorter channels are definitely needed.
B) A higher level of intensity is called for.
C) Modifications in channel structure may be needed.
D) Intermediaries should be dropped.
E) Market density is increasing.
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Chapter 9: Motivating the Channel Members
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Q1) 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.
Q2) 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.
Q3) 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.
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Chapter 10: Product Issues in Channel Management
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Q1) Large supermarkets have selected small food manufacturers to provide natural food items for their stores because:
A) Customers are demanding products made by small manufacturers.
B) Of the small manufacturer's credibility.
C) Large supermarkets can exert greater control over small manufacturers.
D) Costs to the supermarkets are lower.
E) Small food manufacturers are offering large incentives.
Q2) When dealing with product brand strategy,the most difficult channel management issues arise in connection with:
A) Selling all products under one national brand.
B) Selling products under several national brands.
C) Selling all products under a private label.
D) Selling products under both national and private brands.
E) Selling all products under generic brands.
Q3) Treating post-sales service as an afterthought is a shortcoming in:
A) Profit management.
B) Channel management.
C) Logistics management.
D) Customer service management.
E) Training management.
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Chapter 11: Pricing Issues in Channel Management
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Q1) A product cost a wholesaler $6.80.The wholesaler sold the product to a retailer for $10.00.The percentage gross profit on the wholesaler's cost is:
A) 32%.
B) 49.3%.
C) 52.4%.
D) 16.8%.
E) 47%.
Q2) Before automatically passing price increases through the channel,the manufacturer should:
A) Analyze customer reactions.
B) Offer rebates for the same amount as the price increase.
C) Do whatever it can do to mitigate the negative effects of the increase on channel members.
D) Offer increased trade discounts.
E) Provide special promotional material.
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Chapter 12: Promotion through the Marketing Channel
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Q1) Effective retail training programs should include all of the following except:
A) How retail customers can promote products.
B) Selling skills.
C) Product knowledge.
D) Stages of the selling process.
E) Teaching how to "close" a sale.
Q2) Push and pull promotion:
A) Tend to cancel each other out.
B) Can be used together successfully.
C) Are most effective if used sequentially.
D) Must be implemented simultaneously.
E) Are unrelated.
Q3) Training programs at the wholesale level should be aimed at improving all of the following except:
A) The channel members' knowledge of the manufacturer's products.
B) The channel members' selling techniques.
C) The counseling of customers.
D) The salesperson's communication skills.
E) Knowledge of tax implications for their respective companies.
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Page 14
Chapter 13: Logistics and Channel Management
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Q1) "The right amount of the right product,in the right place,at the right time and in the right condition" is incomplete; it also is essential to consider:
A) The right levels of service.
B) The right packages.
C) The right managers.
D) The right price.
E) The right size.
Q2) The services by which logistics performance is measured are known as:
A) Logistic systems costs services.
B) Systems standards.
C) Service standards.
D) Order size and assortment constraint services.
E) Percentage of orders filled services.
Q3) The modern view of logistics is that:
A) The major emphasis should be placed on effective and efficient transportation.
B) The various activities involved should be managed as an integrated system.
C) Channel decisions and logistics decisions are the same.
D) It is the most important component of the marketing mix.
E) Just-in-time inventory resolves logistics problems.
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Page 15
Chapter 14: Evaluating Channel Member Performance
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Q1) Retailers can be unwilling to voluntarily provide manufacturers with data on sales to their customers because:
A) They may not view the manufacturer's brand of products as of great importance to them.
B) Withholding information increases their power in the channel.
C) They fear competitive exposure.
D) The information is proprietary.
E) The data may reveal a company's trade secrets.
Q2) Generally,the less intense is distribution at the various channel levels:
A) The more thorough are channel member evaluations.
B) The less thorough are channel member evaluations.
C) The more difficult are channel member evaluations.
D) The more routine are channel member evaluations.
E) The less informative are channel member evaluations.
Q3) Which of the following should not be used to assess channel member attitudes?
A) Research studies by the manufacturer
B) Outside research agencies
C) Channel audits
D) Distributor advisory councils
E) Surveys of company CEOs
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Chapter 15: Electronic Marketing Channels
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Q1) In a classic article of shopping behavior by Tauber,the author found that:
A) People shop only to make purchases.
B) People generally hate to shop.
C) Shopping is a purely economic endeavor.
D) Most people love to shop.
E) There are many personal and social motives for shopping.
Q2) The addition of new middlemen in marketing channels resulting from the use of Internet-based marketing channels is referred to as:
A) Disintermediation.
B) Vertical integration.
C) Rationalized distribution.
D) Reintermediation.
E) Vertical channel structure.
Q3) With regard to income level among online shoppers:
A) The highest percentage of shoppers earn between $50,000 and $99,999.
B) The majority earned over $200,000.
C) There is a strong correlation between income and online shopping.
D) The highest percentage had incomes under $50,000.
E) Computer ownership does not seem to affect online buying.
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Page 17
Chapter 16: Franchise Marketing Channels
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Sample Questions
Q1) Three major reasons that explain why franchisors distribute via franchise channels are:
A) (1) reduce uncertainty; 2) obtain training; and 3) obtain assistance from franchisee.
B) (1) capital advantages, 2) potential to reduce distribution costs, and 3) possible high level of managerial motivation fostered by franchising.
C) (1) capital advantages, 2) obtain training; and 3) obtain assistance from franchisee
D) (1) capital advantages, 2) potential to reduce distribution costs, and 3) obtain assistance from franchisee.
E) (1) reduce uncertainty; 2) obtain training; and 3) possible high level of managerial motivation fostered by franchising.
Q2) A regular and continuous fee paid to the franchisor by the franchisee is called:
A) Payroll tax.
B) Sales tax.
C) Franchise fee.
D) Usage tax.
E) Royalty fee
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18
Chapter 17: Marketing Channels for Services
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Q1) A hotel chain talks about its great attention to detail in its ads,and in each room,it includes a small sewing kit with extra shirt and blouse buttons.In this case,the hotel chain is an example of:
A) Charge more for its services.
B) Tangibility of services
C) Get customers involved in providing services.
D) Separate out particular services.
E) Entice new customers to make reservations.
Q2) Customer involvement in providing services is __________ in shoe shines and __________ for haircuts.
A) low; high
B) high; low
C) about the same
D) high; high
E) low; low
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19
Chapter 18: International Channel Perspectives
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Q1) The availability of low-cost technology coupled with the capabilities of foreign distributors has led to substantial:
A) Increases in exports by small U.S. manufacturers.
B) Decreases in exports by small U.S. manufacturers.
C) Disadvantages for large scale U.S. manufacturers seeking to export.
D) Declines in the number of small U.S. firms seeking to export.
E) Decreases in costs.
Q2) Behavioral dimensions in international marketing channels are:
A) Relatively straightforward in most international situations.
B) Associated mainly with resolving conflict situations.
C) Almost of equal concern as they are in domestic channels.
D) Based almost exclusively on power.
E) Important for the channel manager to understand.
Q3) Massive international advertising by well-known U.S.firms has proven to be of substantial benefit to:
A) Foreign firms selling competitive products.
B) Private label manufacturers.
C) Foreign distributors selling well-known U.S. products.
D) Foreign firms seeking to export their products to the U.S.
E) Small U.S. businesses competing in the same foreign market.
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