Chapter 7—Selecting the Channel Members
1. The selection of channel members according to the text is __________ the selection of
a. almost as important as
b. as important as
c. more important than
d. of little importance compared with
e. much easier than
2. The selection of channel members:
a. always involves basic changes in channel structure.
b. is of most importance to vertically integrated manufacturers.
c. is sometimes necessary even though the basic channel structure remains the same.
d. is one of the first phases of channel design.
e. is the same as choosing channel structure.
3. As a general rule, the higher the level of selectivity of distribution:
a. the greater the emphasis on selection.
b. the less the emphasis on selection.
c. the lower the emphasis on finding prospective channel members.
d. the fewer the criteria used in selection.
e. the more crucial the need to place products in all appropriate outlets.
4. As a general rule, the greater the intensity of distribution:
a. the less the emphasis on selection.
b. the greater the emphasis on selection.
c. intensity is not related to the selection decision.
d. the more complex the issues surrounding selection.
e. the development of specific criteria for channel member selection becomes very
5. In highly intensive distribution, the selection criteria for channel members:
a. tend to be complex.
b. amount to “Can they pay their bills?”
c. focus on matching retailer image with product image.
d. cannot be generalized.
e. focuses on their efficiency in completing the distribution task.
Selecting the Channel Members
6. According to the text, the most important source for finding prospective channel members is:
a. trade sources.
b. reseller inquiries.
c. distributors’ customers.
d. field sales organizations.
e. facilitating agencies.
7. The manufacturer’s salespeople are often able to do all of the following except:
a. know the prospective channel members in their territories.
b. provide objective evaluations of channel members.
c. become acquainted with the management of salespeople of prospective channel
d. obtain a good deal of information about prospective channel members.
e. line up intermediaries in advance.
8. List the trade sources used for finding prospective channel members.
9. The best way for the manufacturer to obtain information about potential intermediaries from
customers is by _______________ to learn customers’ views about distributors in their
a. talking with competitors who serve the same customers
b. conducting surveys
c. using focus groups
d. setting up a suggestion box
e. analyzing buyer data from UPCs
10. List the significant problem(s) with using the sales force to find prospective channel members.
11. Trade shows and conventions:
a. are generally the most important sources for finding new channel members.
b. are typically a waste of time when it comes to finding prospective channel
c. are useful for finding channel members only in consumer goods industries.
d. are generally useful sources for finding new channel members.
e. have greatly declined as a source for finding new channel members.
Marketing Channels 7e
12. Typically, the producers and manufacturers receiving the highest number of inquiries from
prospective channel members are:
a. those listed in the Verified Directory of Manufacturers’ Representatives.
b. those who advertise most heavily.
c. those who are generally considered to be the most prestigious in the industry.
d. those who offer the largest trade discounts.
e. those who presently have the fewest number of channel members.
13. Which of the following statements about channel member selection criteria lists is true?
a. Channel member criteria lists rarely are used in practice.
b. Generalized lists of criteria such as those of Pegram and Shipley are useless to the
c. Once a company develops a list of criteria, it should not be changed.
d. A changing environment may require the firm to alter its emphasis.
e. A single criteria list is adequate for a firm under all possible conditions.
14. Generalized lists of channel member selection criteria:
a. can help the channel member to develop his or her own specialized list.
b. usually conflict with more specialized lists of criteria.
c. provide little room for flexibility.
d. are adequate without changes.
e. are relevant for all firms in every industry.
15. Yeoh and Calantone identify six categories of selection criteria that reflect the _________
distributors must possess to be effective representatives in foreign markets.
a. breadth of expertise
c. core competencies
d. technical skills
e. efficiency skills
16. The list of selection criteria offered by Pegram may be described as:
a. a very long one.
b. empirically based.
c. a hypothetical checklist.
d. a non native set of criteria.
e. not very relevant to many firms today.
Selecting the Channel Members
17. According to Pegram, the most frequently used criterion for judging the acceptability of
prospective channel members is:
a. distributor sales strength.
b. distributors’ product lines.
d. credit and financial rating.
e. market coverage.
18. In the selection of foreign distributors, which of the following criteria was not cited in a study
of foreign distributors’ selection processes mentioned in the textbook?
b. commitment level
c. financial strength
d. marketing skills
e. product-related factors
19. _________ is the selection criterion that reflects a prospective intermediary’s enthusiasm,
initiative, and aggressiveness.
a. Management ability
d. Market coverage
20. The selection criterion that refers to __________ reflects the degree to which there is a
continuity of management if the principal dies.
a. management ability
b. management succession
21. A prospective channel member’s ability to blanket the geographical territory that the
manufacturer would like to reach is referred to as the __________ criterion.
a. market segmentation
b. intensive distribution
c. market coverage
d. territorial restriction
e. geographical flexibility
Marketing Channels 7e
22. A prospective wholesaler channel member’s sales strength can be measured by:
a. the number and quality of its sales reps.
b. the geography covered by the sales force.
c. the quality of its current product lines.
d. gross profit.
e. total sales revenue.
23. Selecting channel members with market coverage overlap is especially problematic for:
a. manufacturers in highly intensive distribution.
b. manufacturers in highly selective distribution.
c. manufacturers of high technology products.
d. manufacturers with large product lines.
e. It is equally troublesome for all of the above.
24. Which of the following is not a good inducement that manufacturers might offer prospective
a. friendly relationships
b. good, profitable product lines
c. financial support
d. advertising support
e. management assistance
25. Securing the prospective channel members as actual channel members is usually the:
a. first step in the selection process.
b. second step in the selection process.
c. third step in the selection process.
d. fourth step in the selection process.
e. cannot be determined because it varies so much from case to case.
26. One of the best measures of a manufacturer’s commitment to helping channel members to
achieve their objectives is by:
a. offering them a very high quality product line.
b. offering the lowest prices.
c. offering a legal contract to spell out the nature of the channel relationship.
d. offering a management assistance program.
e. offering large cooperative advertising allowances.
27. In using its product line to secure new channel members, it is most important for the
manufacturer to stress:
a. the functionality of the product.
b. the quality of the product.
c. the customer benefits of the product.
d. the depth and breadth of the product line.
e. the profit potential of the product.