Solved > 11)  A(n) ________ indicates the share of total:1954283 …

11)  A(n) ________ indicates the share of total channel profits that each channel member is responsible for generating.

A) holding cost

B) safety stock

C) equitable margin

D) service output share

E) normative profit share

12)  According to the equity principle, the compensation of each channel member should be based on the ________.

A) power of the channel captain

B) equal division of channel profits

C) external competitive environment

D) value created by the channel member

E) promotional efforts of the channel member

13)  A(n) ________ channel meets the target market segment’s service output demands at the minimum cost of performing the channel functions that produce those service outputs.

A) service-oriented

B) promotional

C) zero-based

D) equitable

E) generic

14)  What is the best method for controlling inventory holding costs? 

A) increasing product variety

B) extending the life of goods

C) using multiple vendors

D) changing warehouse locations

E) monitoring factory processes

15)  Which term refers to the decreasing predictability of end-user demand as the channel member’s distance from the end-user increases?

A) capacity utilization

B) environmental bounds

C) service gap

D) zero-sum gain

E) bullwhip effect

16)  Which of the following questions is LEAST relevant to establishing a zero-based channel?

A) Can information systems be modified to reduce the costs of generating quotes and placing orders?

B) Is it possible to eliminate, combine, or redefine certain tasks to reduce the steps for a sale?

C) What non-valued functions can be eliminated without damaging customer satisfaction?

D) What information sharing activities occur between channel members and customers?

E) What redundant activities exist and can be eliminated?

17)  Which term refers to the idea that compensation should reflect the normative profit shares of each channel member?

A) equity principle

B) speculative selling

C) productive activity

D) channel gap

E) postponement

18)  Tyrone, the channel manager for Federated Batteries, has built a channel that meets service output demands at a minimum cost, and he has closed all service and cost gaps. The channel created by Tyrone is best described as ________.

A) functional

B) speculative

C) free riding

D) zero-based

E) fully integrated

19)  Which term refers to limitations that create channel gaps and prevent the establishment of a zero-based channel?

A) gaps

B) bounds

C) outputs

D) variables

E) weaknesses

20)  Legal constraints in the local marketplace that hinder the establishment of a zero-based channel are known as ________.

A) inefficient channel functions

B) product and service gaps

C) environmental bounds

D) service output gaps

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