Question 1.1. Activities of channel management that requires getting channels to carry and sell the product are known as __________ activities.(Points : 1)





Question 2.2. A merchant establishment operated by a concern that is engaged primarily in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities. to retail or to industrial or business users is known as a(n): (Points : 1)



facilitating agent.


Question 3.3. Identify the situation where channel members have significant bargaining power over the marketing manager. (Points : 1)

When the channel’s sales volume is low relative to the product’s total sales volume

When the product is well differentiated from competitors

When the channel poses a credible threat of backward integration

When the channel has high switching costs

Question 4.4. The sales force is rewarded on a commission basis. It wants to sell quantity and is willing to be flexible on price, whereas the organizations strategy is high quality, high price. Identify this source of conflict. (Points : 1)

Goal divergence

Domain dissensus

Differing perceptions of reality

Misuse of power

Question 5.5. When does a direct channel appear to be better than an indirect channel? (Points : 1)

When product customization is important

When one-stop shopping for many products is important

When availability is important

When after-sale service is important

Question 6.6. According to the text, channels of distribution must be treated like: (Points : 1)

partners of the organization.


competitors of the firm.

marketers of the firms products.

Question 7.7. Walmart used its investments in information technology to create direct links between its own warehouses and manufacturers, thereby eliminating the need for independent wholesalers in its system. This is an example of: (Points : 1)



hybrid system.

channel conflict.

Question 8.8. A retailer may not think that the manufacturer’s support in terms of cooperative advertising and training is sufficient while the manufacturer believes that it is offering the same level to that retailer as to others that have been successful. Identify this source of conflict.(Points : 1)

Goal divergence

Domain dissensus

Differing perceptions of reality

Misuse of power

Question 9.9. Wholesalers try to deliver products to customers in lot sizes that match their needs. Identify this channel function. (Points : 1)



Risk taking

Relationship management

Question 10.10. Identify the situation where indirect channels are more useful than direct channels. (Points : 1)

When product customization is important

When after-sale service is important

When purchase orders are large

When transportation and storage are complex

Question 11.11. The Hewlett-Packard salespeople in the Imaging Systems Division must be knowledgeable about the latest developments in ultrasound and other medical imaging technologies. These salespeople typically carry out: (Points : 1)

response selling.

trade selling.

missionary selling.

technical selling.

Question 12.12. Which of the following is likely to occur if a company has an insufficient number of territories? (Points : 1)

A salesperson would spend too much time traveling and not enough time selling.

It would lower a salesperson’s income.

Salespeople would fight over the geographic boundaries.

Territories would overlap.

Question 13.13. __________ become very familiar with customers’ operations and problems and are in an excellent position to satisfy customers’ needs by helping them develop a strategy for the product in question. (Points : 1)

Regional sales managers

District sales managers

Key account managers

Field sales representatives

Question 14.14. The largest part of a sales organization is made up of: (Points : 1)

field sales representatives.

national sales managers.

direct sales managers.

regional sales managers.

Question 15.15. Commission is typically used: (Points : 1)

when the products have long selling cycles like several years.

when management wants to encourage activities like market research that do not generate revenue.

for new salespeople who are unlikely to generate substantial sales in the short run.

to reward the best performance and motivate a high level of selling effort.

Question 16.16. Which of the following leads to intrinsic motivation? (Points : 1)

Different aspects of the job


Salary increase

Sales contests

Question 17.17. Identify the type of quota where it is difficult for the salesperson to know where she or he stands in relation to the quota. (Points : 1)

Sales volume based quota

Profit based quota

Combination quota

Customer based quota

Question 18.18. Which of the following types of selling includes order taking, but also entails responsibilities such as making sure the stock is adequately displayed on shelves, setting up displays, providing demos, and other merchandising activities? (Points : 1)

Response selling

Trade selling

Missionary selling

Technical selling

Question 19.19. Which of the following best describes the kind of sales organization structure that sells a product or product line to all markets? (Points : 1)

Product/product system

Market/market system

Product/market system

Market/customer system

Question 20.20. The fact that a customer may be called on by several salespeople from the same company is a disadvantage of a: (Points : 1)

product/product system.

market/market system.

product/market system.

market/customer system.


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