Question 1

How can a channel member most likely build legitimate power?

Accepted Answer

A)  developing channel partnerships based on common values 
B)  selecting channel partners with unique operating methods 
C)  choosing channel partners that are independent minded 
D)  basing channel partnerships on subjective contracts 
E)  requiring channel partners to pay royalties and fees

Question 2

How can a firm most likely retain its expert power in the long run?

Accepted Answer

A)  keep channel members informed about channel performance 
B)  force channel partners to invest in specialized service outputs 
C)  invest in learning about market trends, threats, and opportunities 
D)  use mystery shoppers to monitor downstream channels 
E)  encourage channel partners to utilize multiple suppliers

Question 3

Which statement about coercive power is most likely FALSE?

Accepted Answer

A)  Coercion involves making an implicit or explicit threat to another organization. 
B)  Coercive power is difficult to overcome because it stems from formal contracts. 
C)  Coercion tends to provoke self-defense responses from channel members. 
D)  Coercive power can be effective in the short run but not in the long run. 
E)  Coercion should be the last tactic used to evoke change in the channel.

Question 4

Managers at SMX Clothing Manufacturer have decided to increase their wholesale prices to gain more revenue from Taylor's Tog Shop,an exclusive retailer for SMX clothing.To preserve the store's margins,the owner of Taylor's Tog Shop increases retail prices on SMX clothes,which leads to reduced demand.Which term best describes this situation?

Accepted Answer

A)  coercion 
B)  dependence 
C)  false negative 
D)  value neutrality 
E)  double marginalization

Question 5

List the six communication strategies for converting channel power into influence and provide examples of each.What type of power is necessary for each type to work?

Accepted Answer

The answer of List the six communication strategies for converting...

Question 6

The valence of a frame refers to whether it is ________.

Accepted Answer

A)  conveyed to upstream or downstream intermediaries 
B)  communicated as an influence strategy 
C)  based on reward or referent power 
D)  dependent on certain conditions 
E)  presented as a positive or a negative

Question 7

What influence strategy is best when a channel member has referent power?

Accepted Answer

A)  promise 
B)  threat 
C)  request 
D)  information exchange 
E)  recommendation

Question 8

According to the text,what is the source of expertise power held by Farmacias Similares?

Accepted Answer

A)  monopoly of Mexico's pharmaceutical firms 
B)  control of Mexico's health insurance system 
C)  influence over Mexico's public hospitals and clinics 
D)  knowledge of Mexico's drug market and regulations 
E)  ownership of most new medication patents in Mexico

Question 9

Nike shoes are sold at retailers such as Foot Locker,Dick's Sporting Goods,and Sports Authority,but they are not sold in Wal-Mart or Target.What is Nike most likely trying to accomplish with this strategy?

Accepted Answer

A)  monitor marketing channel intermediaries 
B)  create and preserve referent power 
C)  establish legitimate power 
D)  use coercive techniques 
E)  manage risk

Question 10

Which term refers to an overestimation of a channel member's ability to exert influence and make change happen?

Accepted Answer

A)  false positive 
B)  reward power 
C)  false negative 
D)  value neutrality 
E)  double marginalization

Question 11

Every Toshiba laptop has an "Intel Inside" sticker near the keyboard.What type of power does Intel most likely have in this case?

Accepted Answer

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

Question 12

According to the text,Gore-Tex initially relied on ________ power to control distribution channels before building and using ________ power.

Accepted Answer

A)  coercive; referent 
B)  reward; legitimate 
C)  referent; legitimate 
D)  coercive; reward 
E)  legitimate; referent

Question 13

Legitimate power can be built by choosing channel partners that are compatible in terms of attitudes,values,and operating methods.

Accepted Answer

A) True 
 B)False

Question 14

Farmacias Similares used its expertise power to ________.

Accepted Answer

A)  sell branded medications to the government 
B)  import inexpensive, generic pharmaceuticals 
C)  develop a profitable health clinic network 
D)  sell safer versions of patented medications 
E)  create new sources of pharmaceutical supplies

Question 15

Z-Mart,the nation's top grocery store chain,requires suppliers to perform bulk breaking activities that vary from store to store.Bulk breaking is both costly and time consuming for suppliers,but the implied threat of being dropped from Z-Mart's approved vendor list influences suppliers to comply.What type of power is Z-Mart most likely using?

Accepted Answer

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

Question 16

The French and Raven approach is a method used to ________.

Accepted Answer

A)  accrue power 
B)  manage channels 
C)  measure power 
D)  identify channels 
E)  segment markets

Question 17

What is channel power? Why is channel power necessary?

Accepted Answer

The answer of What is channel power? Why is channel...

Question 18

Which statement about influence strategies is most likely FALSE?

Accepted Answer

A)  The recommendation influence strategy tends to create skepticism. 
B)  A legalistic influence strategy is often perceived as heavy handed. 
C)  A request influence strategy is commonly used and not offensive. 
D)  High-pressure influence strategies are ineffective in the short-term. 
E)  Promise and threat influence strategies tend to provoke a backlash.

Question 19

What was the primary cause of CNH Group losing market share?

Accepted Answer

A)  CNH was ignoring the needs of its dealers. 
B)  CNH dealers were losing track of customer leads. 
C)  CNH offered customers a poorly designed website. 
D)  CNH was pricing its tractors higher than the competition. 
E)  CNH failed to invest adequately in tractor design and features.

Question 20

The information exchange influence strategy is most likely problematic and risky because it is ________.

Accepted Answer

A)  ineffective due to its subtlety 
B)  viewed as veiled criticism 
C)  damaging to channel morale 
D)  overly authoritative 
E)  psychologically stressful

Exam 10: Managing Channel Power