Ch 16
One objective of trade-oriented promotions is to encourage retailers to display and promote an established brand.
TRUE
One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service.
TRUE
Sales promotion involves some type of inducement that provides an extra incentive to buy
TRUE
Sampling through the mail is common for small, lightweight, nonperishable products.
TRUE
The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
TRUE
110. _____ is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market. A. Horizontal cooperative advertising B. Vertical cooperative advertising C. Integrated dyadic advertising D. Retail-syndication advertising E. Syndicated advertising
A. Horizontal cooperative advertising
54. Which of the following is a disadvantage of couponing? A. It can be difficult to estimate how many consumers will use a coupon and when. B. It discourages initial product trial. C. It assists in reducing the price of a product only by relying on retailers for cooperation. D. It assists only in attracting new customers but does not help in retaining existing customers. E. It may encourage regular users to trade down to inexpensive brands.
A. It can be difficult to estimate how many consumers will use a coupon and when.
112. Which of the following is true of horizontal cooperative advertising? A. It is sponsored by a group of retailers. B. It is used only in the maturity stage of a product's life cycle. C. It is usually conducted by a company and its marketing subsidiaries. D. It is synonymous with comparative advertising. E. It is synonymous with vertical advertising.
A. It is sponsored by a group of retailers.
75. Which of the following is a limitation of using on-package sampling? A. It will not reach nonusers of the carrier brand. B. It cannot be used by multiproduct firms. C. It is highly expensive. D. It can be used only for food products. E. It requires extensive product guarantees.
A. It will not reach nonusers of the carrier brand.
92. Why have loyalty programs become so popular with marketers? A. Loyalty programs support the goal of customer retention. B. Loyalty programs are especially effective when used for new product introductions. C. Loyalty programs are a type of sweepstakes that generate a great deal of consumer interest. D. Loyalty programs allow marketers to set cookies so they can track consumers' activities. E. Loyalty programs are a promotional form of brand extension strategy.
A. Loyalty programs support the goal of customer retention.
104. Which of the following statements is true of slotting allowances? A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. B. Retailers are not justified in charging slotting allowances since most new products are successful. C. Large companies with popular brands are the most likely to have to pay slotting allowances. D. Slotting allowances are illegal and banned by the federal government. E. The costs slotting allowances add to new product introductions are minimal.
A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.
How has the view of sales promotions changed during the past decades? A. Sales promotions are now considered an essential part of an organization's branding strategies. B. Sales promotion tactics are now developed before the branding strategy is determined. C. Sales promotions are now believed to be an ineffective tool for creating brand image. D. Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion. E. Sales promotion techniques are increasingly being considered as "obsolete."
A. Sales promotions are now considered an essential part of an organization's branding strategies.
Which of the following is true of consumer franchise-building promotions? A. They are designed to increase long-term brand preference. B. They are designed to help consumers avoid full-price purchases in the long term. C. They do not always depend on a promotional offer. D. They are a subset of public relations. E. They are synonymous with publicity.
A. They are designed to increase long-term brand preference.
66. Which of the following is a disadvantage of bounce-back coupons? A. They do not attract nonusers of a particular brand. B. They are redeemable on the purchase of a different product. C. They do not induce customers to repurchase the brand. D. They are not useful for a brand that has reached the maturity stage. E. They are not useful for products that are in the early phases of their lifecycle.
A. They do not attract nonusers of a particular brand.
52. The oldest, most widely used, and most effective sales promotion tool is A. cents-off coupons. B. sampling. C. rebates. D. event sponsorship. E. bonus packs.
A. cents-off coupons.
111. Several different manufacturers of personal computers (PCs) have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. The PC manufacturers are using A. cooperative advertising. B. event sponsorships. C. vertical integrated marketing. D. comparative advertising. E. inbound marketing.
A. cooperative advertising.
63. A package of Confident razor blades contains a 75 cents-off coupon for Confident Foamy shaving cream. This is an example of a(n) _____ coupon. A. cross-ruff B. bounce-back C. checkout D. instant E. rebate
A. cross-ruff
74. The in-store sampling approach can be very effective for food products because A. customers get to taste the sample. B. customers get the sample delivered to their homes. C. it is an inexpensive sampling method. D. it does not require a great deal of planning. E. it does not require the cooperation of retailers.
A. customers get to taste the sample.
Coupons, bonus packs, premiums, and samples are promotional offers that are targeted toward A. end users. B. retailers. C. wholesalers. D. salespeople. E. employees.
A. end users.
76. Which of the following sampling methods, featuring media tie-ins, is the fastest growing and the most popular? A. event sampling B. bounce-back sampling C. on-package sampling D. in-store sampling E. door-to-door sampling
A. event sampling
105. Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called A. failure fees. B. slotting fees. C. push monies. D. off-invoice allowances. E. street monies.
A. failure fees.
71. Yummy Oats cereal included tubes of ToothFairy Junior toothpaste inside each of its boxes. This is an example of a A. free premium. B. self-liquidating premium. C. rebate. D. bonus pack. E. nonsubsidized premium.
A. free premium.
Which of the following serves as a reason for the increase in sales promotion? A. growing power of retailers B. increasing brand loyalty of customers C. lack of short-term focus among marketers D. decreased promotional sensitivity E. decreased competition
A. growing power of retailers
57. What advantage does distribution of coupons through direct mail have over other forms of coupon delivery? A. less clutter B. lower cost C. lower redemption rate D. lower economies of scale E. cooperative advertising opportunities
A. less clutter
56. The most popular method for distributing coupons is through A. newspaper freestanding inserts. B. direct mail. C. product packaging. D. magazines. E. the Yellow Pages.
A. newspaper freestanding inserts.
120. According to attribution theory, a consumer who purchases a product on promotion may not repurchase it because the A. purchase behavior is attributed to an external incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. purchase is internally motivated and unaffected by an external stimulus.
A. purchase behavior is attributed to an external incentive.
103. Money that must be paid to a retailer so it will take on a company's new product is known as A. slotting allowances. B. failure fees. C. spiffs. D. push monies. E. trade discounts.
A. slotting allowances.
97. Which of the following promotions is targeted toward the trade rather than consumers? A. spiffs B. coupons C. premiums and sweepstakes D. bonus packs E. bounce-back coupons
A. spiffs
When MillerCoors used a Taste Challenge promotion to help regain market share for Miller Light against Bud Light and other brands of light beer, it was A. using a sales promotion to attract users of a competing brand. B. identifying new uses for the brand. C. obtaining repurchase. D. defending current customers. E. targeting a specific market segment.
A. using a sales promotion to attract users of a competing brand.
When a brand moves to the maturity stage, advertising is primarily used as a reminder to keep consumers aware of the brand.
TRUE
114. VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. This is an example of _____ advertising. A. horizontal cooperative B. vertical cooperative C. parody D. ingredient-producer cooperative E. comparative
B. vertical cooperative
59. Nearly _____ percent of consumers use coupons on a regular basis. A. 50 B. 80 C. 20 D. 10 E. 90
B. 80
Which of the following is true of consumer franchise building (CFB) promotions? A. CFB promotions are designed to promote short-term brand preference. B. CFB promotions cannot make consumers loyal to a brand that is of little value. C. CFB promotions can make consumers loyal to a brand that does not provide a specific benefit. D. CFB promotions typically do not contribute to the development of a favorable brand image. E. CFB promotions are not suitable for brand extension strategies.
B. CFB promotions cannot make consumers loyal to a brand that is of little value.
55. Which of the following statements is true of couponing? A. Coupons always assist in providing an immediate response. B. Coupons are often used by consumers who are already loyal to the brand. C. Coupons are useless when it comes to promoting established products. D. Coupons are more effective than sampling for inducing initial product trial in a short period. E. Coupons have an extremely high redemption rate.
B. Coupons are often used by consumers who are already loyal to the brand.
119. Which of the following is true of allocation of the promotional budget when a brand enters the introductory stage? A. In this stage, promotional dollars will not be allocated for activities such as sampling and couponing. B. In this stage, a large portion of the budget will be allocated to sales promotion techniques. C. In this stage, promotional dollars must be used to eliminate brand differences. D. In this stage, all the promotional support for the brand will be removed. E. In this stage, promotional dollars will be used only for word-of-mouth marketing.
B. In this stage, a large portion of the budget will be allocated to sales promotion techniques.
113. _____ is advertising supported by raw materials manufacturers to help establish end products that include a company's materials. A. Vertical cooperative advertising B. Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Guerrilla advertising E. Buzz marketing
B. Ingredient-sponsored cooperative advertising
67. Which of the following is true of in-store couponing? A. It is a highly expensive method of couponing. B. It is typically distributed through checkout counters. C. It is typically a long-term strategy used during the maturity stage. D. It is also known as bond couponing. E. It is also known as cross-ruff couponing.
B. It is typically distributed through checkout counters.
77. Which of the following is a limitation of using in-store sampling? A. It can be used only for food products. B. It requires the cooperation of retailers. C. It is a highly ineffective method. D. It must always be used in combination with another sampling method. E. It is typically considered effective only for high-end luxury products.
B. It requires the cooperation of retailers.
_____ is generally considered the most effective method for generating trial of a new product. A. Couponing B. Sampling C. Rebating D. Sweepstakes promotion E. A contest
B. Sampling
_____ is a common sampling technique for small, lightweight products that are nonperishable. A. Door-to-door sampling B. Sampling through the mail C. In-store sampling D. On-package sampling E. Location sampling
B. Sampling through the mail
73. Which of the following is true of self-liquidating premiums? A. They are used for lightweight, nonperishable products. B. They require customers to pay for the mailing costs. C. They are typically offered at higher-than-retail prices. D. They are also known as cost-plus premiums. E. They are usually delivered directly to the customers' doorsteps.
B. They require customers to pay for the mailing costs.
116. With respect to the allocation of the promotional budget, when a brand moves to the maturity stage A. push monies are used to encourage retailers to stock more products. B. advertising is primarily a reminder to keep consumers aware of the brand. C. promotional dollars will be used only for distributing coupons to customers. D. all promotional support for the brand will be removed. E. promotional dollars will be used only for distributing samples.
B. advertising is primarily a reminder to keep consumers aware of the brand.
58. An in- or on-package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross-sell E. checkout
B. bounce-back
62. On the inside of its pizza box, Joe's Pizza places a $1-off coupon, which can be redeemed at the next purchase. In this scenario, Joe's is using a(n) _____ coupon. A. cross-ruff B. bounce-back C. instant D. cross-sell E. checkout
B. bounce-back
84. Sweepstakes and contests A. are used to move consumers to the conviction stage of the hierarchy of effects model. B. can be used to generate excitement and involvement with a popular and timely event. C. contribute minimally to consumer franchise building. D. do not distract from consumer franchise-building activities. E. are synonymous to each other.
B. can be used to generate excitement and involvement with a popular and timely event.
Account-specific marketing is also known as A. a planogram program. B. comarketing. C. dual sponsorship. D. piggyback marketing. E. guerilla marketing.
B. comarketing.
Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as A. nonfranchise-building promotions. B. consumer franchise-building promotions. C. high-involvement sales promotions. D. sales promotion traps. E. event marketing.
B. consumer franchise-building promotions.
82. A _____ is a promotion where consumers compete for prizes and/or money on the basis of skills or ability. A. sweepstakes B. contest C. refund D. rebate E. sample
B. contest
64. Pluto Inc. places a 50 cents-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell
B. cross-ruff
Brand equity is also known as A. customer loyalty. B. customer franchise. C. brand extension. D. brand logo. E. trademark.
B. customer franchise.
88. Bonus packs A. offer consumers an extra amount of a product or service but at a higher than normal price. B. help marketers provide extra value to consumers without having them do anything more than purchase the product. C. are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer. D. are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins. E. result in a higher cost per unit for the consumer.
B. help marketers provide extra value to consumers without having them do anything more than purchase the product.
90. Spring Supermarket gives its customers VIC (very important customer) cards, which give customers additional discounts on certain products and notifications of special, customer-only sales. In addition, customers can accrue points each time they present their cards while making a purchase. These points can be used to purchase cookware, dishes, and other similar hard goods. Spring Supermarket is using a A. bonus program. B. loyalty program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.
B. loyalty program.
91. Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a A. sweepstakes program. B. loyalty program. C. customer rewards contest. D. premium promotion. E. rebate program.
B. loyalty program.
93. Which of the following types of sales promotions are also called continuity programs? A. point-of-purchase displays B. loyalty programs C. price-off deals D. dealer incentives E. event sponsorship programs
B. loyalty programs
Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as A. consumer franchise-building promotion. B. nonfranchise-building promotion. C. vertical integration marketing. D. image promotions. E. evangelism marketing.
B. nonfranchise-building promotion.
107. A _____ is a configuration of products that occupy a shelf section in a store, offered to retailers by manufacturers. A. slotting plan B. planogram C. promotional layout D. retail format E. gatefold
B. planogram
121. When McDonald's introduced its value menu in 2003 and competitors responded by putting popular items on their value meal menus to keep up, it was an example of a(n) ________________ or a spiral that results when several competitors use promotions extensively. A. attribution trap B. sales promotion trap C. primary reinforcement spiral D. secondary reinforcement spiral E. external trap
B. sales promotion trap
72. Consumers must pay the manufacturers' cost-price or a _____ premium. A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost
B. self-liquidating
83. A _____ is a promotion where winners are determined purely by chance. A. contest B. sweepstakes C. rebate D. premium E. loss leader
B. sweepstakes
Which of the following is an example of a nonfranchise-building promotion? A. consumer sampling B. contests targeted to ultimate consumers C. price-off deals D. event sponsorship E. frequency programs
C. price-off deals
96. Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of A. slotting fees. B. fixed trade spending. C. push money. D. promotional pricing. E. a bonus pack.
C. push money.
_____ marketing is a type of marketing in which a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives. A. Evangelism B. Close range C. Account-specific D. Call to action E. Affinity
C. Account-specific
Which of the following developments has resulted in a transfer of power from manufacturers to retailers? A. The advent of optical scanners and computers has given manufacturers access to sales information. B. An increase in brand loyalty among consumers has led to an increase in sales promotion activities. C. Consolidation of the retail industry has resulted in larger chains with greater buying power and clout. D. A significant decrease in promotional sensitivity and time sensitivity among consumers has occurred since the early 2000s. E. Increasingly, manufacturers are introducing more private-label brands into the market.
C. Consolidation of the retail industry has resulted in larger chains with greater buying power and clout.
78. Which of the following is a limitation of sampling through the mail? A. It can be used only by multiproduct firms. B. It must always be used in combination with another sampling method. C. It involves extensive postal restrictions. D. It cannot be used for nonperishable products. E. It can be used only for food samples.
C. It involves extensive postal restrictions.
Which of the following statements describes how brand equity is affected by the increased use of sales promotion? A. Critics argue that sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity. D. There is strong agreement among marketing professionals that any type of sales promotion activity detracts from brand equity. E. Marketing experts generally agree that advertising plays an important role in building and maintaining a brand's image and position, which are core components of its equity.
C. Marketing experts argue that higher spending on sales promotion is at the expense of media advertising, which leads to a decline in brand equity.
86. Which of the following statements is true of rebates? A. Rebates are synonymous with refunds, and are used only for consumer durables like automobiles and appliances. B. Most retailers want to be involved with rebate programs. C. Nonusers of rebates perceive the rebate redemption process as too complicated. D. Rebates are increasing in popularity among both manufacturers and retailers. E. Rebates are ineffective in encouraging repeat purchases.
C. Nonusers of rebates perceive the rebate redemption process as too complicated.
_____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial. A. A rebate B. A refund C. Sampling D. Couponing E. A sweepstakes
C. Sampling
80. Which of the following is an advantage of sampling through the mail? A. It offers a greater markup for the retailer than other sampling techniques. B. It can take place in stores as well as at a variety of other venues such as concerts. C. The marketer has control over where and when the product will be distributed. D. The distribution system is unaffected by postal restrictions and increasing postal rates. E. This sampling method is always used in combination with another sampling method.
C. The marketer has control over where and when the product will be distributed.
How are marketers responding to the decline of consumers' attention to mass-media advertising? A. They are using more media monitoring services to make event sponsorship more successful. B. They are using more traditional mass-media-based advertising. C. They are using more sales promotions. D. They are employing clipping services to determine the effectiveness of their press releases. E. They are spending more money on television ads.
C. They are using more sales promotions.
108. A manufacturer of skis and skiing accessories provides sales personnel in ski shops with instruction classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of A. cooperative advertising. B. sales force automation. C. a sales training program. D. event marketing. E. a sales incentive program.
C. a sales training program.
98. An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. This payment by J&J Appliance is known as A. a slotting fee. B. a mnemonic. C. a spiff. D. pull money. E. a bonus pack.
C. a spiff.
99. Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them in promoting and selling a company's product is A. a fixed trade spending. B. a rebate. C. a spiff. D. an off-invoice allowance. E. a slotting fee.
C. a spiff.
100. A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote, or display a manufacturer's product is known as A. cooperative advertising. B. merchandising support. C. a trade allowance. D. a spiff. E. push money.
C. a trade allowance.
101. Dewy, a fruit juice manufacturer, offers its retail accounts a $3.00 per case discount on all purchases of cranberry juice during the month of May. This discount will be deducted straight from the bill. This is an example of A. push money. B. a slotting allowance. C. an off-invoice allowance. D. a display allowance. E. a fixed trade spending.
C. an off-invoice allowance.
87. Got Game, a sports store, ran a promotion campaign in which it offered a box of 15 Pyramid golf balls at the price of 12 balls. This is an example of a A. price-off deal. B. premium. C. bonus pack. D. rebate. E. trade allowance.
C. bonus pack.
85. Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase? A. samples and coupons B. premiums C. contests and sweepstakes D. event sponsorships E. bonus packs
C. contests and sweepstakes
With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature. A. mail sampling B. couponing C. door-to-door sampling D. on-package sampling E. mobile coupon
C. door-to-door sampling
70. NapTime Inc., a manufacturer of mattresses, gave away a Sheep plush toy to any customer who purchased a mattress from a NapTime dealer. The toy was only available for a limited period. The plush toy is an example of a A. coupon. B. sample. C. free premium. D. rebate. E. self-liquidating premium.
C. free premium.
61. One of the main types of on-package coupons is the _____ coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it at the time of the purchase. A. bounce-back B. cross-ruff C. instant D. cross-sell E. premium
C. instant
65. Packages of Vinnie's Cornmeal have coupons that can be cut out and redeemed at the time of purchase. These are called _____ coupons. A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell
C. instant
60. Which of the following have the highest redemption levels of all types of coupons? A. bounce-back coupons B. cross-ruff coupons C. instant coupons D. cross-sell coupons E. premium coupons
C. instant coupons
69. A(n) _____ is an offer of an item of merchandise or services, either free or at a reduced price, that is used to provide an extra incentive to purchase. A. mnemonic B. heuristic C. premium D. prommercial E. exhibition
C. premium
Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision making. Which of the following would best support a marketer in producing a quick and easily measurable jump in sales? A. mass-media advertising B. a strategy that enhances the advertising carryover effect C. sales promotions such as coupons and price discounts D. bait-and-switch marketing techniques E. out-of-home advertising media
C. sales promotions such as coupons and price discounts
Samples would be an appropriate promotional strategy A. to support an everyday low price (EDLP) strategy. B. to facilitate a push promotional strategy. C. to introduce a new product into the marketplace. D. in the decline stage of a product's life cycle. E. to build long-term relationships with customers.
C. to introduce a new product into the marketplace.
115. Advertising implemented by retailers and paid for, at least in part, by a manufacturer is called A. joint sales promotions. B. horizontal cooperative advertising. C. vertical cooperative advertising. D. ingredient-sponsored cooperative advertising. E. reseller advertising.
C. vertical cooperative advertising.
109. _____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers. A. A planogram B. A trade layout C. Cooperative advertising D. A trade show E. Event marketing
D. A trade show
81. _____ is a sampling method in which the product is delivered directly to the prospect's residence. A. In-house sampling B. In-store sampling C. Event sampling D. Door-to-door sampling E. Bounce-back sampling
D. Door-to-door sampling
53. An advantage of coupons is that they A. elicit faster consumer responses than samples, unlike sweepstakes and rebates. B. generally elicit immediate response from consumers. C. are very effective even without brand name awareness. D. allow a marketer to offer a price reduction only to consumers who are price-sensitive. E. build brand loyalty.
D. allow a marketer to offer a price reduction only to consumers who are price-sensitive.
95. Which of the following statements about event sponsorships and event marketing is true? A. The amount of money spent on event sponsorships has been declining in recent years. B. Event sponsorships are not typically integrated into a company's marketing communications strategy. C. Event marketing and event sponsorship are synonymous. D. Event sponsorship objectives are often part of an organization's public relations activities. E. Event marketing, unlike other forms of promotion, is ineffective in connecting with consumers in an environment where they are comfortable with receiving a promotional message.
D. Event sponsorship objectives are often part of an organization's public relations activities.
117. Which of the following is true of allocation of the promotional budget when a brand enters the decline stage? A. In this stage, promotional dollars will be used only for distributing coupons to customers. B. In this stage, promotional dollars will be used only for distributing samples. C. In this stage, price-offs and bonus packs must be used intermittently to maintain consumer loyalty. D. In this stage, all the promotional support for the brand will be removed. E. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.
D. In this stage, all the promotional support for the brand will be removed.
118. Which of the following is true of allocation of the promotional budget when a brand enters the growth stage? A. In this stage, promotional dollars will be used only for bait-and-switch marketing. B. In this stage, promotional dollars will be used only for rebate advertising. C. In this stage, price-offs and bonus packs must be used intermittently to induce product trial. D. In this stage, promotional dollars must be used primarily for advertising to stress brand differences. E. In this stage, advertising is primarily a reminder to keep consumers aware of the brand.
D. In this stage, promotional dollars must be used primarily for advertising to stress brand differences.
79. Which of the following is a limitation of door-to-door sampling? A. It can be used only by multiproduct firms. B. It is subject to increasing postal rates. C. It can be used only for food products. D. It involves high labor costs. E. It must always be used in combination with another sampling method.
D. It involves high labor costs.
Which of the following is true of the increase in sales promotion by brand managers? A. Brand managers tend to ignore sales promotion due to its primacy effect. B. Many brand managers believe that sales promotions cannot be used to defend against competition. C. Typically, sales promotions are not used by brand managers while introducing new products. D. Sales promotions are typically used by brand managers to meet quarterly goals. E. Sales promotions are generally a neglected part of the IMC process by most brand managers.
D. Sales promotions are typically used by brand managers to meet quarterly goals.
Kiddo Inc., a toy manufacturer, teamed with Game On, a retailer, to create direct-mail booklets offering discounts on Kiddo toys only at Game On stores. This is an example of A. guerilla marketing. B. brand stretching. C. evangelism marketing. D. account-specific marketing. E. brand extension.
D. account-specific marketing.
68. Electronically dispensed checkout coupons A. generate impulse buying and product trial. B. have no redemption deadline. C. are available on a company's website and must be printed out to be used. D. are cost effective and can be targeted to specific categories of consumers. E. are attached to the outside of the package so they can be ripped off and redeemed immediately.
D. are cost effective and can be targeted to specific categories of consumers.
Which of the following is an example of a trade-oriented sales promotion activity? A. samples B. coupons C. refunds/rebates D. dealer contests E. bonus packs
D. dealer contests
94. Planet Beverage's heavy financial involvement with freestyle skiing competitions and support of beach volleyball tournaments are examples of A. premiums. B. field marketing. C. exhibitions. D. event marketing. E. contests.
D. event marketing.
In _____ sampling, a marketer hires temporary demonstrators who set up a table or booth within an outlet, prepare small samples of a product, and pass them out to shoppers. A. door-to-door B. event C. on-package D. in-store E. direct-mail
D. in-store
51. In a(n) _____ sampling, a multiproduct firm attaches the sample to an existing item of the firm. A. checkout B. spiff C. in-store D. on-package E. bounce-back
D. on-package
102. Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called A. off-invoice allowances. B. push monies. C. advertising subsidies. D. promotional allowances. E. slotting allowances.
D. promotional allowances.
106. Slotting allowances are also called A. off-invoice allowances. B. spiffs. C. push money. D. street money. E. rebates.
D. street money.
One reason for consumers' increased sensitivity to sales promotions is A. that they have become less time-sensitive. B. the increase in perceived brand loyalty. C. the increased power of manufacturers. D. that they save money. E. that consumers' choices have declined.
D. that they save money.
The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is A. sweepstakes. B. contests. C. frequent patronage programs. D. trade promotions. E. event sponsorships.
D. trade promotions.
Which of the following is an advantage of the sampling method of sales promotion? A. It is the least expensive among all methods of sales promotion. B. The costs of the sampling program can easily be recovered with just a few purchases. C. Marketers believe that for all products the results of sampling can be seen immediately. D. It is extremely useful for products and services that do not have subtle features. E. Consumers gain a greater appreciation for a product's benefits.
E. Consumers gain a greater appreciation for a product's benefits.
122. A study by Priya Raghubir and Kim Corfman showed A. purchase behavior is attributed to an internal incentive. B. relationships between promotions and attitudes are weak. C. primary reinforcement is the brand, and not the promotional incentive. D. consumers typically possess high brand loyalty. E. price promotions may inhibit trial of a brand in certain situations
E. price promotions may inhibit trial of a brand in certain situations
89. When reductions from the regular price of a product are offered at the point-of-purchase through specially marked packages, a marketer is using a A. bonus price pack. B. rebate. C. refund offer. D. bounce-back price coupon. E. price-off deal.
E. price-off deal.
Which of the following elements of the integrated marketing communications program is designed to provide an extra incentive to consumers to purchase a brand? A. magazine advertising B. direct mail C. public relations D. publicity E. sales promotion
E. sales promotion
Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on A. telemarketing. B. direct mail. C. publicity. D. synergistic buying. E. sales promotion.
E. sales promotion.
When General Mills included a Mini Minion character toy in its Lucky Charms cereal to provide an extra incentive for customers to buy the cereal, it was using a A. sweepstakes. B. contest. C. frequent patronage program. D. trade promotion. E. sales promotion.
E. sales promotion.
A major reason for decrease in sales promotion is that customers have become less brand loyal.
FALSE
Event sampling is where a package is attached to another item.
FALSE
In order to integrate advertising and sales promotion programs successfully, the theme of consumer promotion need not be tied in with the positioning platform for the company and/or its brand.
FALSE
Media support for a sales promotion program is typically considered optional.
FALSE
Promotion programs cannot be developed to coincide with peak sales periods for certain products and services.
FALSE
Sales promotion activities cannot be targeted to different parties in the marketing channel
FALSE
Sales promotions are typically not considered a part of the IMC planning process.
FALSE
Sampling is generally considered the least effective way to generate trial.
FALSE
The use of newspapers and magazines as couponing vehicles has increased dramatically since the introduction of FSIs.
FALSE
A brand that is constantly promoted may lose perceived value.
TRUE
A major reason for the increase in spending on sales promotion is that the promotion industry has matured over the past several decades.
TRUE
A sales promotion trap can result when several competitors use promotions extensively.
TRUE
A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand.
TRUE
An objective for consumer-oriented promotions is to enhance or support the integrated marketing communications effort for a brand or company.
TRUE
