Chapter 14

One frequently cited ratio is that about __________ percent of the channel members account for about __________ percent of sales.

20; 80

Manufacturers can obtain detailed sales data from channel members more readily if they have:

A contractual agreement.

A channel member performance audit may be described as:

A periodic and comprehensive review of channel member performance.

If a channel member fails to meet minimum performance standards, the channel manager should:

Analyze the channel member's needs and problems. Put

When multiple criteria are combined formally:

Criteria and associated operational measures are made explicit.

When multiple criteria are combined informally to evaluate channel member performance:

Cross comparisons among channel members are not valid

What type of appraisal does a channel manager conduct to assist in maintaining current operating control of channel members' efforts to sell the manufacturer's products?

Day-to-day monitoring

In order to spot negative channel member attitudes before they affect performance, attitudes should be:

Evaluated independently of sales data.

When a manufacturer thoroughly evaluates only those channel members whose sales figures are unusually out of line, it is using:

Evaluation by exception

All of the following are appropriate methods to evaluate channel member performance in the context of the channel member's competition except:

Expected growth rates of the industry.

A manufacturer should ask questions about all of the following topics in evaluating a channel member's inventory performance except:

How effective is the channel member's inventory control manager.

A channel member's sales performance usually is compared to all of the following except:

Industry sales.

A major disadvantage of a separate performance evaluation is that:

It offers little insight into overall channel member performance.

Which of the following is a false statement about the Deere & Company and its independent dealers?

John Deere's new CEO, Robert Lane, says its dealers are part of the Deere family and can never be replaced.

If a channel member is not meeting performance standards, the channel manager should:

Make an effort to learn about the needs and problems of the channel member.

According to Spriggs, which of the following is not a criterion for measuring channel member performance?

Number of customer complaints

According to the text, the evaluation of channel member performance is:

Of equal importance to employee evaluation.

Evaluating channel members using separate performance evaluations:

Only a and c above

According to a study by Spriggs, the two categories of performance measures to audit channel members are:

Outcome based and behavior based

Manufacturers are more likely to scrutinize channel member performance if their products:

Require a high degree of post-sale service.

A channel manager evaluates a wholesaler's sales force to assess the wholesaler's:

Selling capacity.

Channel member performance audits:

Should be periodic and comprehensive.

Which of the following should not be used to assess channel member attitudes?

Surveys of company CEOs

A channel member's inventory should be evaluated based on all of the following except:

The display method used for the inventory.

Generally, the greater the degree of control the manufacturer has over the channel member:

The easier it is to obtain performance data.

Which of the following is not a factor affecting the scope and frequency of channel member evaluations?

The level of expertise of the channel managers

Generally, the less intense is distribution at the various channel levels:

The more thorough are channel member evaluations.

Separate performance evaluations measure channel member performance against one or more criteria when:

The number of channel members is very large.

All of the following are good means for the manufacturer to evaluate a wholesaler's sales force except:

The number of sales made by each sales rep

Issues associated with a social satisfaction evaluation of channel members include all of the following except:

The supplier provides my firm with marketing and selling support of high quality.

The channel manager should evaluate channel member sales data in terms of all of the following except:

The volume of product each salesperson is selling.

Retailers can be unwilling to voluntarily provide manufacturers with data on sales to their customers because:

They may not view the manufacturer's brand of products as of great importance to them

If the quota attainment ratio is low for the majority of channel members, the problem is likely to be:

Unrealistically high quotas.

Which of the following is not a usual question for evaluating channel member growth prospects?

What is the total level of the channel member's current inventory?

All of the following are times when a channel manager may want to evaluate a channel member's reputation except:

When there is a change in the channel member's location.

The degree of control the manufacturer has over its channel members plays __________ in determining the scope and frequency of its evaluation of channel members.

a major role

Generally, the more complex the product, the __________ the scope of channel member evaluations.

broader

A manufacturer dealing with a small number of channel members at the wholesale level likely uses _________ to check its channel members' inventory levels.

its own sales force

For the manufacturer who sells all of its output through intermediaries, the evaluation of its channel members is likely to be __________ than for those manufacturers who rely less on intermediaries.

much more comprehensive