'The manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate', refers to which one of the following channel power?
Coercive power
Concept: French and Raven's bases of channel power distinguish influence by its source - reward, coercion, legitimacy, expertise or reference - and the wording of the situation reveals which base is at work.
Channel power is the ability of one channel member to influence another. Here the manufacturer influences intermediaries by threatening to withdraw a resource or end the relationship if they do not cooperate - that is, by holding out a penalty. Influence based on the threat of punishment is coercive power.
Example: A car maker warning a dealer that it will cut supplies or cancel the dealership unless targets are met is exercising coercive power.
Reward power works through positive incentives, not threats; legitimate power rests on a contractual or hierarchical right to direct; and referent power flows from the intermediary's desire to be identified with a respected manufacturer. Because the cue here is a threat of withdrawal or termination rather than an incentive, right or identification, those three are eliminated.
Hence it refers to coercive power.
The whole channel concept for International Marketing is represented as :
Which one of the following refers to “two or more unrelated companies put together their resources or programmes to exploit an emerging marketing opportunity” ?
Which of the following is not primarily a responsibility of producers for their channel members?
Generally, a supermarket in classified by which of the following category ?
Producers of convenience goods typically prefer
Which of the following is a type of off-price retailer?
Match the items of List - I with the items of List - II and select the correct code of matching :
| List - I (Type of store Retailers) | List - II (Formats) |
| (a) Speciality store | (i) Broad selection of high-mark up, fast moving, brand-name goods sold by a list |
| (b) Drug store | (ii) Narrow product line |
| (c) Super store | (iii) Prescription and pharmacies |
| (d) Catalogue showroom | (iv) Huge selling space |
Code :
Which one of the following is a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings ?
A manufacturer, to market its products, focuses on the following marketing channel alternatives :
(i) Telemarketing
(ii) Distributors
(iii) Sales force
(iv) Internet
(v) Retail stores
(vi) Value-added partners
Select the code of correct sequence of the channel alternatives in order of increasing cost per transaction.
Which of the following marketing channel function helps to fulfil the completed transactions?
The whole channel concept for International Marketing is represented as :
Which one of the following refers to “two or more unrelated companies put together their resources or programmes to exploit an emerging marketing opportunity” ?