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21. Manufacturer’s export agents specialize in only a few countries and have a short-term relationship with their clients.

 

 

22. Manufacturer–wholesaler franchise systems account for the largest number of franchisees and the largest volume of sales and are common in the automotive and petroleum industries.

 

 

23. Manufacturer–retailer franchise systems are exemplified by the soft-drink industry.

 

 

24. The power of any firm within a distribution channel is inversely proportional to how dependent the other channel members are on that firm.

 

 

25. Referent power stems from a perception that one channel member has special knowledge or expertise that can benefit other members of the system.

 

 

26. Pull strategies are commonly employed by large consumer goods marketers.

 

 

27. Cooperative advertising programs pay a percentage of a reseller’s expenses for local advertising up to some limit based on that reseller’s sales of the product.

 

 

28. As channel conflict is inevitable, the challenge is not to eliminate channel conflict but to manage it better.

 

 

29. Territorial restrictions involve the granting of a geographical monopoly to a buyer for a given product.

 

 

30. Reciprocity and tying contracts are legally accepted practices.

 

 

 

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