11) Which of the following is the best barrier to entry against future competitors? A) Product price cuts B) Unique product features C) Highly fragmented wholesalers D) Effective distribution networks E) High-functioning logistical services 12) All of the following have resulted from the relationship between Wal-Mart and P&G EXCEPT ________. A) fewer stockouts B) lower logistics costs C) increased opportunity costs D) constant store-level sales data E) simplified inventory management 13) What is the primary reason that building strong relationships with all channel partners is unwise? A) Committed relationships cannot be clearly identified. B) Strong relationships do not correlate with improved profits. C) Only one channel member financially benefits from a relationship. D) Differentiation strategies fail to benefit from channel commitment. E) Strong relationships are difficult and costly to create and maintain. 14) Which of the following would LEAST likely increase continuity expectations in a channel relationship? A) Two-way communication B) Reputation for fair dealing C) Combined stakes D) Imbalanced power E) Trust 15) What is the first stage of building channel commitment? A) Establishing mutual commitment B) Building an expectation of continuity C) Developing a differentiation strategy D) Forming a joint partnership E) Defining economic rewards 16) Which term refers to the idea that relational states belong to organizations and outlive personnel turnover? A) Organizational memory B) Idiosyncratic investment C) Organizational culture D) Relationship velocity E) Relationship balance 17) Which term best refers to a manufacturer’s relationship-specific investments in a channel partner? A) Supplier pledges B) Exclusive distributions C) Relationship portfolios D) Compatible investments E) Idiosyncratic investments 18) What is the primary purpose of making idiosyncratic investments? A) Building channel commitment B) Limiting the supplier’s risk C) Increasing entry barriers D) Aligning marketing strategies E) Enhancing brand equity 19) Malcolm Motorcycles is the exclusive dealer of Harley-Davidson Motorcycles in Rhode Island. Harley-Davidson has most likely shown its commitment to Malcolm Motorcycles through ________. A) reciprocity B) selectivity C) dedicated personnel D) compatible strategies E) idiosyncratic investments 20) Which action taken by a downstream channel member would most likely enhance commitment in a channel relationship? A) Developing relationships with other suppliers B) Limiting the exchange of sensitive information C) Preventing suppliers from seeing too many weaknesses D) Participating closely in the supplier’s marketing efforts E