Use This Information for Questions That Refer to the World

question 303

Multiple Choice

Use this information for questions that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co.(WTB) makes tennis balls and sells them only in the United States.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors.
1) WTB sells its products through four regional distributors,who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.
2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country.The distributors then sell through six sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) .ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention.
3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.
If American Tennis Ball adds more retail outlets,which of the following would help it to manage channel conflict?

• A)assigning the channel captain role to the largest retail chain
• B)selling a different brand of tennis ball through the new retailers than what it sells through current retailers
• C)selecting new retail outlets that target the same customers as those who buy from its current retailers
• D)choosing new retailers in the same geographic market as its current retailers but who sell at lower prices
• E)dropping its national advertising and leave it to retailers to promote its tennis balls

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Definitions:

Regulators

Nonverbal signals used to control, maintain, or facilitate the flow of communication in an interaction, such as nodding to indicate agreement or attention.

Nonverbal Cues

Communication signals expressed through body language, facial expressions, and other physical behaviors rather than words.

Social Psychologists

Specialize in understanding how individual thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Body Orientation

The positioning or alignment of the body in relation to another person, thing, or direction, which can convey messages or attitudes nonverbally.