True or False

1. It appears that the power in marketing channels is shifting increasingly toward retailers.

2. The uses of private branding has resulted in greater power for the retailer in the channel of distribution.

3.From a channel-management perspective, it appears that the use of coercive power should generally produce better results in helping forge long-term working relationships.

4.Wholesalers include merchant wholesalers, manufacturers' representatives, agents, and brokers. Brokers make their profit by buying at a wholesale price and selling at a marked-up price to their downstream customers.

5.Multi-channel structures do not work well in reaching customers in consumer markets.

6. The core of distribution channel success lies in identifying and meeting target consumer or customer segments' demands for service outputs. ( ) 7.Exclusive distribution is the requirement by a manufacturer that its channel intermediaries sell only its products or brands, no competitors' products or brands.

8.One of the major challenges facing retailers is the vertical integration forward into retailing by manufacturers.

9.In general, a firm is more likely to use of intermediaries when its market is small.

10. For a manufacturer, using direct distribution means to open up its own brand stores.

Multiple choice(Select one best answer from the given choices for each of the questions)

1. Regarding Intensive Distribution, which statement is not true?

A Sales would be great in the long run.

B Some members would "free ride " on the efforts of others.

C Retailing prices would drop.

D Service would deteriorate gradually.

2. In franchising systems, what kind of conflicts often occurs?

A goal divergence B domain dissensus C differing perceptions of reality D None of the above

3. The use of multiple sales agents in one market area can generate significant domain conflict, as all agents will be competing for sales across the same base of customers. This kind of domain conflict can be managed best through the use of

A reward power B legitimate power C coercive power D referent power E expert power

4. Which channel conflict is quite different from the others?

A. P & G has opened a website to sell its products on-line, its channel partners were unhappy.

B. Coca Cola would like to increase its sales by offering a discount on its cans. However, the retailer knows that overall soda sales will not go up much when Coke is put on saleconsumers who bought other brands will just switch, for the most part. Therefore, the retailer might like to "pocket" any discount that Coke offers.

C. McDonald's placed new stores in California which took business from existing locations.

D. Ford dealers in Chicago might complain the other dealers in the city steal sales from them by pricing too low or by selling outside their assigned territories.

5. Short channels are not preferred for:

A Products with short shelf life B Convenient products. C special goods with high value D firms that desire a high level of channel control.

6. Other things being equal, the greater the distance between a producer (manufacturer) and his markets, a channel using intermediaries will be:

A less expensive B more expensive C short in structure D intensively covered by intermediaries

7. six producers of garden tools all sell through one wholesaler to five retailers. The total number of contacts needed for all of the manufacturers to contact all of the retailers is ___. If the wholesaler were eliminated from the channel, the number of contacts needed would be:

A 6; 5 B 16; 15 C 11; 5 D 11; 30

8. FBB company sells products and services to some industry buyers around the world. It has been acquiring some of its distributors and integrating forward to sell directly to end-users, while simultaneously keeping its network of independent value-added resellers. The channel of FBB is A exclusive distribution B a single channel C a dual distribution D a vertical marketing system

9.In order to get retailers to display its product, a manufacturer has to have its salespeople go to the retailers' stores, set up the displays, and instruct them in how to utilize the displays. The retailer views this sales force as a nuisance that interferes with customer service. There seems to be a problem of: A goal incompatibilities B perceptual differences. C role incongruencies D resource scarcities

10. Product characteristics affecting channel structure include all of the following except:

A availability of inputs/supplies B perishability. C degree of standardization D unit value

Answer the following questions briefly.

1. Give three examples of retailers exerting reward power and coercive power.

2. What are the advantages and disadvantages of manufacturers using intermediaries?