Question 1

Ideally,the channel manager should set the margins offered the channel members:

Accepted Answer

A)  So that margins would vary in direct proportion to the functions performed by the different classes of channel members. 
B)  So that margins would vary in inverse proportion to the functions performed by the different classes of channel members. 
C)  At a level at which the manufacturer can earn a reasonable profit. 
D)  At a level that covers all the costs of all channel members. 
E)  So that they entice channel members to promote the product. 
A)  So that margins would vary in direct proportion to the functions performed by the different classes of channel members. 
B)  So that margins would vary in inverse proportion to the functions performed by the different classes of channel members. 
C)  At a level at which the manufacturer can earn a reasonable profit. 
D)  At a level that covers all the costs of all channel members. 
E)  So that they entice channel members to promote the product.

Question 2

Which of the following is most likely to have the effect of moving price points downward for a product category?

Accepted Answer

A)  Inflation 
B)  Monopoly conditions 
C)  Shortages 
D)  Lack of new products 
E)  Advancing technology 
A)  Inflation 
B)  Monopoly conditions 
C)  Shortages 
D)  Lack of new products 
E)  Advancing technology

Question 3

A manufacturer may feel it needs to control resale price for all of the following reasons except:

Accepted Answer

A)  Its strategy uses price to convey a high-quality product image. 
B)  It believes price wars will lead to unstable conditions for the whole channel. 
C)  It needs to ensure adequate margins so channel members will provide a high level of service. 
D)  It needs all channel members to perform in a specific manner in order to meet strategic objectives. 
E)  Stable prices are in the best long-run interest of the firm. 
A)  Its strategy uses price to convey a high-quality product image. 
B)  It believes price wars will lead to unstable conditions for the whole channel. 
C)  It needs to ensure adequate margins so channel members will provide a high level of service. 
D)  It needs all channel members to perform in a specific manner in order to meet strategic objectives. 
E)  Stable prices are in the best long-run interest of the firm.

Question 4

The "price" paid to gain channel member support must emphasize:

Accepted Answer

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. 
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.

Question 5

An item cost $20 to produce.The retailer sold the product for $79.It had cost the retailer $50.The wholesaler had paid $34 for the product.The list price of the product was $100.The total of the dollar gross margins received by the manufacturer,wholesaler,and retailer amounts to:

Accepted Answer

A)  $50. 
B)  $63. 
C)  $59. 
D)  $80. 
E)  $29. 
A)  $50. 
B)  $63. 
C)  $59. 
D)  $80. 
E)  $29.

Question 6

Which of the following is not a factor that should normally be included in developing pricing strategies?

Accepted Answer

A)  Internal cost considerations 
B)  The target markets 
C)  Competition 
D)  Needs of channel members 
E)  Consumer income 
A)  Internal cost considerations 
B)  The target markets 
C)  Competition 
D)  Needs of channel members 
E)  Consumer income

Question 7

Pricing in the marketing channel can be thought of as analogous to:

Accepted Answer

A)  Family eating last. 
B)  Who gets what "piece of the pie". 
C)  Having fair-weather friends. 
D)  Giving out life jackets on the Titanic. 
E)  He or she who laughs last laughs best. 
A)  Family eating last. 
B)  Who gets what "piece of the pie". 
C)  Having fair-weather friends. 
D)  Giving out life jackets on the Titanic. 
E)  He or she who laughs last laughs best.

Question 8

The "golden rule" of channel pricing advises channel managers to:

Accepted Answer

A)  Ensure channel members receive the highest margins the manufacturer can afford. 
B)  Give explicit consideration to the effect of pricing decisions on channel member behavior. 
C)  Control resale pricing at all levels in the channel. 
D)  Ignore competitors 
E)  Ensure that costs exceed price. 
A)  Ensure channel members receive the highest margins the manufacturer can afford. 
B)  Give explicit consideration to the effect of pricing decisions on channel member behavior. 
C)  Control resale pricing at all levels in the channel. 
D)  Ignore competitors 
E)  Ensure that costs exceed price.

Question 9

Manufacturers are often concerned about their products being involved in the gray market for all of the following reasons except:

Accepted Answer

A)  It disrupts the manager's ability to manage the market channel. 
B)  Authorized channel members are unhappy. 
C)  Channel members may drop the product. 
D)  Channel members may retaliate by making disparaging remarks about the product. 
E)  Consumers may stop buying the product because of a perceived decrease in value. 
A)  It disrupts the manager's ability to manage the market channel. 
B)  Authorized channel members are unhappy. 
C)  Channel members may drop the product. 
D)  Channel members may retaliate by making disparaging remarks about the product. 
E)  Consumers may stop buying the product because of a perceived decrease in value.

Question 10

When reviewing the margins offered to different classes of channel members,the channel manager should consider all of the following functions except:

Accepted Answer

A)  Does the channel member hold inventories? 
B)  Does the channel member make purchases in large or small quantities? 
C)  Does the channel member provide repair services? 
D)  Does the channel member provide delivery? 
E)  Does the channel member offer guarantees and repair warranties? 
A)  Does the channel member hold inventories? 
B)  Does the channel member make purchases in large or small quantities? 
C)  Does the channel member provide repair services? 
D)  Does the channel member provide delivery? 
E)  Does the channel member offer guarantees and repair warranties?

Question 11

Which of the following is a false statement about Oxenfeldt's set of eight classic guidelines for developing pricing strategies?

Accepted Answer

A)  They help channel managers focus on the channel implications of their pricing decisions. 
B)  They offer some general prescriptions on how to formulate pricing policies to foster cooperation and minimize conflict. 
C)  They sometimes are irrelevant. 
D)  They set a framework for pricing decisions. 
E)  They guarantee results. 
A)  They help channel managers focus on the channel implications of their pricing decisions. 
B)  They offer some general prescriptions on how to formulate pricing policies to foster cooperation and minimize conflict. 
C)  They sometimes are irrelevant. 
D)  They set a framework for pricing decisions. 
E)  They guarantee results.

Question 12

Which of the following statement pertaining to "special pricing deals" is false?

Accepted Answer

A)  Special pricing deals include discounts, enhanced quantity discounts, and free goods. 
B)  Generally special pricing deals enhance brand equity. 
C)  Many consumers have been conditioned to expect special pricing deals. 
D)  The purpose of special pricing deals is to stimulate sales of the manufacturer's products. 
E)  Often retailers come to view price deals as the normal state of affairs. 
A)  Special pricing deals include discounts, enhanced quantity discounts, and free goods. 
B)  Generally special pricing deals enhance brand equity. 
C)  Many consumers have been conditioned to expect special pricing deals. 
D)  The purpose of special pricing deals is to stimulate sales of the manufacturer's products. 
E)  Often retailers come to view price deals as the normal state of affairs.

Question 13

If a powerful manufacturer,an industry leader with exceptionally strong brand loyalty from final customers,offers channel members margins they perceive to be inadequate,the channel members are likely to do all of the following except:

Accepted Answer

A)  Immediately drop the product from their product line. 
B)  Promote their own private-label brands. 
C)  Seek out other suppliers. 
D)  Establish a private label brand. 
E)  Tolerate the situation, but only in the short run. 
A)  Immediately drop the product from their product line. 
B)  Promote their own private-label brands. 
C)  Seek out other suppliers. 
D)  Establish a private label brand. 
E)  Tolerate the situation, but only in the short run.

Question 14

The __________ often causes a problem with price promotions.

Accepted Answer

A)  delivery of enough inventory 
B)  indifference of consumers 
C)  lack of a good promotional campaign 
D)  differing price elasticities of consumers and retailers 
E)  seasonality of a product 
A)  delivery of enough inventory 
B)  indifference of consumers 
C)  lack of a good promotional campaign 
D)  differing price elasticities of consumers and retailers 
E)  seasonality of a product

Question 15

Of all the elements in the marketing mix,channel members at the wholesale and retail levels view __________ as being most in their domain.

Accepted Answer

A)  advertising 
B)  sales promotion 
C)  physical distribution 
D)  product development 
E)  pricing 
A)  advertising 
B)  sales promotion 
C)  physical distribution 
D)  product development 
E)  pricing

Question 16

An item cost a manufacturer $4 to produce.It has a wholesale trade discount of 66% and a retail trade discount of 50%.The list price of the item is $15.Assuming the retailer sold the item for $12,the dollar gross margins received by the manufacturer,wholesaler,and retailer are respectively:

Accepted Answer

A)  $5.90, $2.40, $4.50. 
B)  $4.50, $1.10, $2.40. 
C)  $1.10, $2.40, $4.50. 
D)  $1.40, $2.50, $7.50. 
E)  $2.64, $2.40, $6.96. 
A)  $5.90, $2.40, $4.50. 
B)  $4.50, $1.10, $2.40. 
C)  $1.10, $2.40, $4.50. 
D)  $1.40, $2.50, $7.50. 
E)  $2.64, $2.40, $6.96.

Question 17

Giant retail chains such as Home Depot and Lowe's,demand lower prices from manufacturers because:

Accepted Answer

A)  They place orders for future purchases. 
B)  They have a large volume of customers demanding low prices. 
C)  They perform many wholesaler functions. 
D)  They have more control in the channel market than the manufacturers. 
E)  They only sell highly discounted products. 
A)  They place orders for future purchases. 
B)  They have a large volume of customers demanding low prices. 
C)  They perform many wholesaler functions. 
D)  They have more control in the channel market than the manufacturers. 
E)  They only sell highly discounted products.

Question 18

Which of the following is true regarding manufacturers' attempt to uncover channel members' views on the manufacturer's pricing strategies?

Accepted Answer

A)  There are several methods that can be used to obtain this information. 
B)  It is the channel member's job to find out about channel member views. 
C)  Channel managers should pay particular attention to channel member views about pricing strategy. 
D)  Research done by outside companies can assist manufacturers obtain the needed data. 
E)  All of the above 
A)  There are several methods that can be used to obtain this information. 
B)  It is the channel member's job to find out about channel member views. 
C)  Channel managers should pay particular attention to channel member views about pricing strategy. 
D)  Research done by outside companies can assist manufacturers obtain the needed data. 
E)  All of the above

Question 19

Trade discounts:

Accepted Answer

A)  Are offered at every level of the channel: wholesalers, retailers and final customers. 
B)  Are virtually standard across all industries in the U.S. 
C)  Are reductions from list price. 
D)  Reduce the cost of the product if the firm pays the bill within 20 days. 
E)  Are seldom used. 
A)  Are offered at every level of the channel: wholesalers, retailers and final customers. 
B)  Are virtually standard across all industries in the U.S. 
C)  Are reductions from list price. 
D)  Reduce the cost of the product if the firm pays the bill within 20 days. 
E)  Are seldom used.

Question 20

The concept of "buying distribution" refers to:

Accepted Answer

A)  The various prices charged by agent intermediaries. 
B)  A manufacturer's competitive pricing strategy that allows its channel members extra-high margins. 
C)  Searching for channel members who are willing to perform for the price that the manufacturer is willing to pay. 
D)  Paying channel members for services through the margins offered by the manufacturer. 
E)  Offering lower margins to channel members. 
A)  The various prices charged by agent intermediaries. 
B)  A manufacturer's competitive pricing strategy that allows its channel members extra-high margins. 
C)  Searching for channel members who are willing to perform for the price that the manufacturer is willing to pay. 
D)  Paying channel members for services through the margins offered by the manufacturer. 
E)  Offering lower margins to channel members.

Ideally,the channel manager should set the margins offered the channel members:

Which of the following is most likely to have the effect of moving price points downward for a product category?

A manufacturer may feel it needs to control resale price for all of the following reasons except:

The "price" paid to gain channel member support must emphasize:

An item cost $20 to produce.The retailer sold the product for $79.It had cost the retailer $50.The wholesaler had paid $34 for the product.The list price of the product was $100.The total of the dollar gross margins received by the manufacturer,wholesaler,and retailer amounts to:

Which of the following is not a factor that should normally be included in developing pricing strategies?

Pricing in the marketing channel can be thought of as analogous to:

The "golden rule" of channel pricing advises channel managers to:

Manufacturers are often concerned about their products being involved in the gray market for all of the following reasons except:

When reviewing the margins offered to different classes of channel members,the channel manager should consider all of the following functions except:

Which of the following is a false statement about Oxenfeldt's set of eight classic guidelines for developing pricing strategies?

Which of the following statement pertaining to "special pricing deals" is false?

If a powerful manufacturer,an industry leader with exceptionally strong brand loyalty from final customers,offers channel members margins they perceive to be inadequate,the channel members are likely to do all of the following except:

The __________ often causes a problem with price promotions.

Of all the elements in the marketing mix,channel members at the wholesale and retail levels view __________ as being most in their domain.

An item cost a manufacturer $4 to produce.It has a wholesale trade discount of 66% and a retail trade discount of 50%.The list price of the item is $15.Assuming the retailer sold the item for $12,the dollar gross margins received by the manufacturer,wholesaler,and retailer are respectively:

Giant retail chains such as Home Depot and Lowe's,demand lower prices from manufacturers because:

Which of the following is true regarding manufacturers' attempt to uncover channel members' views on the manufacturer's pricing strategies?

Trade discounts:

The concept of "buying distribution" refers to:

Marketing Channel Concepts

The Channel Participants

The Environment of Marketing Channels

Behavioral Processes in Marketing Channels

Strategy in Marketing Channels

Designing Marketing Channels

Selecting the Channel Members

Target Markets and Channel Design Strategy

Motivating the Channel Members

Product Issues in Channel Management

Promotion through the Marketing Channel

Logistics and Channel Management

Evaluating Channel Member Performance

Electronic Marketing Channels

Franchise Marketing Channels

Marketing Channels for Services

International Channel Perspectives

Filters

Exam 11: Pricing Issues in Channel Management

Ideally,the channel manager should set the margins offered the channel members:

Which of the following is most likely to have the effect of moving price points downward for a product category?

A manufacturer may feel it needs to control resale price for all of the following reasons except:

The "price" paid to gain channel member support must emphasize:

An item cost $20 to produce.The retailer sold the product for $79.It had cost the retailer $50.The wholesaler had paid $34 for the product.The list price of the product was $100.The total of the dollar gross margins received by the manufacturer,wholesaler,and retailer amounts to:

Which of the following is not a factor that should normally be included in developing pricing strategies?

Pricing in the marketing channel can be thought of as analogous to:

The "golden rule" of channel pricing advises channel managers to:

Manufacturers are often concerned about their products being involved in the gray market for all of the following reasons except:

When reviewing the margins offered to different classes of channel members,the channel manager should consider all of the following functions except:

Which of the following is a false statement about Oxenfeldt's set of eight classic guidelines for developing pricing strategies?

Which of the following statement pertaining to "special pricing deals" is false?

If a powerful manufacturer,an industry leader with exceptionally strong brand loyalty from final customers,offers channel members margins they perceive to be inadequate,the channel members are likely to do all of the following except:

The __________ often causes a problem with price promotions.

Of all the elements in the marketing mix,channel members at the wholesale and retail levels view __________ as being most in their domain.

An item cost a manufacturer $4 to produce.It has a wholesale trade discount of 66% and a retail trade discount of 50%.The list price of the item is $15.Assuming the retailer sold the item for $12,the dollar gross margins received by the manufacturer,wholesaler,and retailer are respectively:

Giant retail chains such as Home Depot and Lowe's,demand lower prices from manufacturers because:

Which of the following is true regarding manufacturers' attempt to uncover channel members' views on the manufacturer's pricing strategies?

Trade discounts:

The concept of "buying distribution" refers to:

Marketing Channel Concepts

The Channel Participants

The Environment of Marketing Channels

Behavioral Processes in Marketing Channels

Strategy in Marketing Channels

Designing Marketing Channels

Selecting the Channel Members

Target Markets and Channel Design Strategy

Motivating the Channel Members

Product Issues in Channel Management

Promotion through the Marketing Channel

Logistics and Channel Management

Evaluating Channel Member Performance

Electronic Marketing Channels

Franchise Marketing Channels

Marketing Channels for Services

International Channel Perspectives

Filters