PSYC 515 COMPLETE STUDY GUIDE QUESTIONS
AND SOLUTIONS 2026 VERIFIED PASS CONTENT
▶ Push and Pull Strategy Answer: Refer to whether the manufacturer
targets consumers or channel partners with its marketing communications.
Customers pull goods through the channel, while intermediaries push the
goods to consumers from the manufacturer. Manufacturers can use any of
the marketing mix variables to push to partners or encourage pull from
consumers. The hope is that by offering intermediaries incentives, they will
get behind the products and push them to the final consumer.
▶ Push oriented activities Answer: Include advertisements to partners,
selective distribution, sales force incentives, price discounts, quantity
discounts, financing typically directed at the intermediary, and allowances
for marketing activities.
▶ Pull oriented activities Answer: Include consumer-directed advertising,
wide distribution, coupons, rebates, loyalty points, price discounts, quantity
discounts, and free samples. Some activities can be both push and pull
strategies.
▶ Types of channel conflict Answer: 1. Horizontal conflict is among
partners at the same level.
2. Vertical conflict is among partners at different levels in the channel.
3. Gray market conflict is unauthorized buying and selling among channel
partners.
4. Corporate vertical marketing systems, in which all channel members are
owned by/contracted to one company, provides control of conflict.
5. Channel power/leadership allows control of conflict by domination of the
channel by one partner.
▶ Marketing channel conflicts Answer: Assume financial risks such as
international exchange rates and inventory obsolescence; and provide
, marketing communications (e.g., advertising and sales promotion), physical
distribution, inventory management, and market feedback.
▶ Channel Integration Answer: Refers to the back or buy decision that
firms face when determining whether to do a distribution function or have
someone else undertake the activity.
Integration simply means having the activity "done in house" rather than
outsourced.
▶ Horizontal competition Answer: Horizontal competition is competition
between retailers of different types
▶ Vertical competition Answer: Vertical competition is when the
manufacturer competes with its partners. It is possible for a firm to compete
with a firm in one channel, yet cooperate with it in another.
▶ Retailing Answer: General merchandise retailers like department stores
carry more breadth, but are typically not deep in any given line.
Specialty stores like toy stores carry depth, but not breadth.
▶ Frontstage operations Answer: Front-stage are those activities visible to
the customers while backstage are elements customers do not see
▶ Backstage operations Answer: Backstage activities must be run
efficiently to support frontstage operations; for example, technology plays a
critical role in streamlining self-service checkouts at retail stores. Retailers
must ask what parts of the process flow smoothly? What parts do not?
What parts of the process might be streamlined or eliminated altogether.
▶ Site selection models Answer: Predict sales as a function of population
density and proportions of target demographic presence in potential site
areas.
▶ Environmental data Answer: Includes income and social class
distributions, median ages, and household composition.
▶ What are key sales force issues? Answer: Sales force size and
compensation issues.
AND SOLUTIONS 2026 VERIFIED PASS CONTENT
▶ Push and Pull Strategy Answer: Refer to whether the manufacturer
targets consumers or channel partners with its marketing communications.
Customers pull goods through the channel, while intermediaries push the
goods to consumers from the manufacturer. Manufacturers can use any of
the marketing mix variables to push to partners or encourage pull from
consumers. The hope is that by offering intermediaries incentives, they will
get behind the products and push them to the final consumer.
▶ Push oriented activities Answer: Include advertisements to partners,
selective distribution, sales force incentives, price discounts, quantity
discounts, financing typically directed at the intermediary, and allowances
for marketing activities.
▶ Pull oriented activities Answer: Include consumer-directed advertising,
wide distribution, coupons, rebates, loyalty points, price discounts, quantity
discounts, and free samples. Some activities can be both push and pull
strategies.
▶ Types of channel conflict Answer: 1. Horizontal conflict is among
partners at the same level.
2. Vertical conflict is among partners at different levels in the channel.
3. Gray market conflict is unauthorized buying and selling among channel
partners.
4. Corporate vertical marketing systems, in which all channel members are
owned by/contracted to one company, provides control of conflict.
5. Channel power/leadership allows control of conflict by domination of the
channel by one partner.
▶ Marketing channel conflicts Answer: Assume financial risks such as
international exchange rates and inventory obsolescence; and provide
, marketing communications (e.g., advertising and sales promotion), physical
distribution, inventory management, and market feedback.
▶ Channel Integration Answer: Refers to the back or buy decision that
firms face when determining whether to do a distribution function or have
someone else undertake the activity.
Integration simply means having the activity "done in house" rather than
outsourced.
▶ Horizontal competition Answer: Horizontal competition is competition
between retailers of different types
▶ Vertical competition Answer: Vertical competition is when the
manufacturer competes with its partners. It is possible for a firm to compete
with a firm in one channel, yet cooperate with it in another.
▶ Retailing Answer: General merchandise retailers like department stores
carry more breadth, but are typically not deep in any given line.
Specialty stores like toy stores carry depth, but not breadth.
▶ Frontstage operations Answer: Front-stage are those activities visible to
the customers while backstage are elements customers do not see
▶ Backstage operations Answer: Backstage activities must be run
efficiently to support frontstage operations; for example, technology plays a
critical role in streamlining self-service checkouts at retail stores. Retailers
must ask what parts of the process flow smoothly? What parts do not?
What parts of the process might be streamlined or eliminated altogether.
▶ Site selection models Answer: Predict sales as a function of population
density and proportions of target demographic presence in potential site
areas.
▶ Environmental data Answer: Includes income and social class
distributions, median ages, and household composition.
▶ What are key sales force issues? Answer: Sales force size and
compensation issues.
