Unformatted text preview: members. CHANNEL CONTROL occurs when
one channel member intentionally affects another member’s behavior. CHANNEL LEADERSHIP
is the exercise of authority and power. CHANNEL PARTNERING is the joint effort of all
channel members to create a channel that serves customers and creates a competitive advantage.
Collaborating channel partners meet the needs of consumers more effectively by ensuring the
right products reach shelves at the right time and at a lower cost, boosting sales and profits. They
are all components of channel relationship management.
KEY: CB&E Model Distribution OBJ: 13-6 TOP: AACSB MSC: BLOOMS Synthesis 14. Imagine that a European manufacturer wants to introduce its digital thermostats to the U.S.
market. The thermostats are designed to reduce power usage and save energy. What are the two
basic channel structures it can use? Briefly describe the advantages and disadvantages of each
(1) It can market the thermostats directly using company salespeople. (2) It can market the
thermostats through independent foreign intermediaries, such as agents or distributors. Using
company salespeople generally provides more control and is less risky than using foreign
intermediaries. However, setting up a sales force in a foreign country also entails a greater
commitment, both financially and organizationally.
KEY: CB&E Model Distribution | CB&E Model International Perspective
MSC: BLOOMS Synthesis
15. Discuss the three main areas of importance in service distribution.
MINIMIZING WAIT TIMES. Minimizing the amount of time a customer waits for service is a
key factor in maintaining the quality of service. People tend to overestimate the amount of time
they spend waiting in line, and unexplained waiting seems longer than explained waiting.
MANAGING SERVICE CAPACITY. If service firms don’t have the capacity to meet demand,
they must either turn down dome prospective customers, let service slip, or expand capacity. For
instance, at tax time, a tax preparation firm may have so many customers desiring its services that
it has to either turn business away or add temporary offices or prepares.
IMPROVING SERVICE DELIVERY. Like manufacturers, service providers are now
experimenting with different distribution channels. These new channels can increase the time that
service is available (such as the Internet) or add to consumer convenience (plan a vacation
KEY: CB&E Model Distribution OBJ: 13-8 TOP: AACSB MSC: BLOOMS Synthesis Chapter 15—Retailing
1. Retailing can be defined as all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
TOP: AACSB Reflective Thinking
MSC: BLOOMS Knowledge REF: 231
KEY: CB&E Model Distribution 2. A retail establishment can be classified according to its ownership, level of servi...
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This document was uploaded on 09/29/2013.
- Fall '13