PSYC 515 EXAM SCRIPT QUESTIONS AND
ANSWERS 2026 AUTHENTIC PREPARATION
MATERIAL
▶ Pull Strategy Answer: Used to promote directly to end consumers in
order to pull the goods from the manufacturer to the consumer.
▶ Selective Distribution Strategy Answer: Used for less widely distributed
products. It is usually used for complex and/or expensive products that
require assistance like cars, computers, and appliances.
▶ Push Strategy Answer: Used to provide incentives to the distribution
partners to help push the goods through the supply chain and into the
hands of the buying consumer. The manufacturer has more control due to
fewer relationships to manage.
▶ Exclusive Distribution Strategy Answer: Used for the extreme case of
selectivity. Manufacturers have the most control and it may become
monopolistic.
Exclusive distribution usually goes with exclusive promotional efforts,
higher prices, and higher quality products.
▶ 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.
ANSWERS 2026 AUTHENTIC PREPARATION
MATERIAL
▶ Pull Strategy Answer: Used to promote directly to end consumers in
order to pull the goods from the manufacturer to the consumer.
▶ Selective Distribution Strategy Answer: Used for less widely distributed
products. It is usually used for complex and/or expensive products that
require assistance like cars, computers, and appliances.
▶ Push Strategy Answer: Used to provide incentives to the distribution
partners to help push the goods through the supply chain and into the
hands of the buying consumer. The manufacturer has more control due to
fewer relationships to manage.
▶ Exclusive Distribution Strategy Answer: Used for the extreme case of
selectivity. Manufacturers have the most control and it may become
monopolistic.
Exclusive distribution usually goes with exclusive promotional efforts,
higher prices, and higher quality products.
▶ 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.
