Chapter 10Product Issues in Channel Management

MULTIPLE CHOICE

1. Amazon.com has begun to pressure manufacturers to use less wasteful packaging because:
a. Thousands of workers are injured each year opening the hard, clear plastic
packaging.
b. The packaging is bad for the environment.
c. With sales of over $35 billion annually, it has to clout to pressure manufacturers.
d. Customers have complained about the use of excessive packaging.
e. Having a large advertising budget.

ANS: E (p. 291)

2. To a channel manager, the elements of the marketing mix do all of the following except:
a. They can inhibit the performance of the marketing channel.
b. They can enhance the performance of the marketing channel.
c. They are tools for securing channel member cooperation.
d. They are viewed as resources for the channel manager.
e. They do not affect the performance of other channel members.

ANS: E (p. 292)

3. The channel managers efforts to manage the marketing channels effectively should focus on:
a. Creating synergy among the four components of the marketing mix.
b. Motivating channel managers.
c. Understanding advertising and promotions that attract customers.
d. Developing the firms marketing objectives.
e. Using good communication skills with channel members.

ANS: A (p. 292)

4. For the channel manager, the most powerful element of the marketing mix for gaining channel
member cooperation is:
a. Product.
b. Price.
c. Promotion.
d. Logistics.
e. It varies.

ANS: E

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 Product Issues in Channel Management

5. Product decisions __________ channel management decisions.

a. affect
b. are dependent upon
c. are independent of
d. are made before
e. are made after

ANS: A

6. Which of the following is a false statement about when a manufacturer is developing new
products and involvement of channel members?
a. Channel members should have experts at the manufacturers plant during product
development.
b. Channel members should be consulted to determine whether new products will be
acceptable.
c. Channel members should be asked to react to new product and package prototypes.
d. Channel members should provide feedback during the test-marketing stage.
e. Channel members should be asked for new product ideas.

ANS: A (p. 293)

7. K&B Manufacturing, in developing its new products, must recognize that its intermediaries
will judge the acceptability of the new products based on:
a. The amount of real innovation in the product.
b. The cost of the new product relative to the cost of competitive products.
c. The products profit potential in terms of meeting established margin structures.
d. The amount of advertising dollars offered to the intermediaries to support the new
product.
e. The demand by customers.

ANS: C

8. 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 manufacturers 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.

ANS: B (p. 295)

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9. Acceptance of a new product by channel members __________ its acceptance by final users.
a. effectively guarantees
b. is necessary for
c. is unrelated to
d. is dependent upon
e. is unconstrained by

ANS: B (p. 294)

10. Bruce Computer Software, in developing its new products, must recognize that its
intermediaries will be enthusiastic only if the new products:
a. Are highly differentiated.
b. Complement the intermediaries current assortment.
c. Are of high quality.
d. Are unique.
e. Offer new opportunities to gain new customers.

ANS: B

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