SOLVED

1) Power is best described as a(n) ________. A) cooperative arrangement B) potential for influence C) index of profitability D) tough strategic tactic E) act of free will 2) Which term refers to the ability to alter another organization’s behavior? A) channel dependence B) legitimate power C) coercive power D) channel strategy E) channel power 3) All of the following were results of HP using its power to push assembly activities down the channel EXCEPT ________. A) fewer stockouts B) market expansion C) mass customization D) higher inventory levels E) increased customer satisfaction 4) Which term refers to an overestimation of a channel member’s ability to exert influence and make change happen? A) false positive B) reward power C) false negative D) value neutrality E) double marginalization 5) 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? A) coercion B) dependence C) false negative D) value neutrality E) double marginalization 6) The French and Raven approach is a method used to ________. A) accrue power B) manage channels C) measure power D) identify channels E) segment markets 7) What type of power involves giving a benefit in return for a channel member’s agreement to alter its behavior? A) reward B) coercive C) expert D) referent E) legitimate 8) What type of power involves negative sanctions for failing to conform to a channel member’s expectations? A) reward B) coercive C) expert D) referent E) legitimate 9) 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? A) reward B) coercive C) expert D) referent E) legitimate 10) Which statement about coercive power is most likely FALSE? 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