21) What risk does a supplier most likely take by using multiple channels? A) decreasing domain conflicts among channel members B) demotivating downstream channel members C) increasing product line depth and expenses D) minimizing market coverage E) decreasing primary demand 22) How does a supplier LEAST likely benefit from multiple channels? A) building primary demand for a product category B) raising entry barriers to potential competitors C) providing better market coverage D) serving customers more efficiently E) increasing distribution intensity 23) Cobalt Manufacturing, which uses multiple channels to sell electronic components, is experiencing channel conflict with retailers. How should Cobalt most likely address this problem? A) terminate retailers who use too many discounts B) develop different pricing schemes for every retailer C) supply differentiated product lines to different groups of retailers D) sell more products through e-commerce than brick-and-mortar retailers E) increase the use of social media in promoting the product line and brand name 24) Which term refers to the sale of authorized, branded products through unauthorized distribution channels? A) niche marketing B) gray marketing C) black marketing D) differential pricing E) counterfeiting 25) Gray marketing is most common for ________. A) products that require service B) outsourced products C) manufacturing inputs D) mature products E) counterfeit goods 26) How do suppliers most likely benefit from gray markets? A) introduction of new product lines B) development of brand image C) formation of joint partnerships D) reduction of channel conflicts E) access to different segments 27) Which statement about threats is most likely FALSE? A) Threats tend to increase channel conflict. B) The use of threats is typically perceived as coercion. C) Using threats is likely to reduce channel members’ satisfaction. D) A channel member with minimal punitive capabilities tends to make threats. E) A dominant channel member is more likely to threaten a weaker channel member. 28) Which of the following is most likely a characteristic of balanced marketing channels? A) heavy reliance on noncoercive strategies B) high number of manifest conflicts C) reliance on gray marketing efforts D) total absence of disputes E) conflict of goals 29) According to the text, a dealer that believes a supplier has engaged in destructive actions because of a changing market will most likely respond by ________. A) withdrawing from the relationship B) threaten to stop selling the line C) accepting the situation passively D) neglecting the supplier E) trying to fix the situation 30) What is the most likely purpose of dealer councils? A) monitoring channel member flexibility and cooperation B) establishing standards for engaging in gray marketing activities C) identifying destructive actions taken by dealers towards suppliers D) facilitating communication between dealers and suppliers that are in conflict E