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Chap016.doc

Chapter 16 - Sales Promotion

Chapter 16

Sales Promotion

 

Multiple Choice Questions  

1. ______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale.  A. Brand advertising B. Sales promotion C. Direct marketing D. Promotional allowance E. Specialty marketing

 

2. Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?  A. Advertising B. Direct mail C. Public relations D. Price E. Sales promotion

 

3. When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):  A. brand franchise building promotion. B. brand equity building promotion. C. acceleration tool. D. value added tool. E. promotional marketing tool.

 

4. Coupons, bonus packs, premiums, and samples are promotional offers that are targeted towards:  A. consumers. B. retailers. C. wholesalers. D. salespeople. E. employees.

 

5. Consumer-oriented sales promotions are part of a promotional _____ strategy.  A. cooperative B. pull C. trade D. premium E. push

 

6. Which of the following is an example of consumer-oriented sales promotion activity?  A. Off-invoice allowances B. Promotional allowances C. Point-of-purchase displays D. Trade shows E. Coupons

 

7. Which of the following is an example of trade-oriented sales promotion activity?  A. Samples B. Coupons C. Refunds/rebates D. Trade shows E. Bonus packs

 

8. Which of the following statements is true about sales promotion programs?  A. Sales promotion programs are targeted only at consumers. B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers. C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions. D. Sales promotion strategies aimed at customers are called push strategies. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.

 

9. 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 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. There is no difference between how marketers used to treat sales promotions and how they treat them now.

 

10. Which of the following serves as a reason for the increase in sales promotion?  A. Power shift in market place from manufactures to retailers B. Increasing brand loyalty of the customers C. Need for long-term increase in sales D. Decreased promotional sensitivity E. Decreased competition

 

11. Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before?  A. Because they want to use sales promotions rather than engage in price wars. B. Because they are convinced that sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements. C. Because the use of sales promotions allows them to cut back and/or completely eliminate the use of coupons. D. Because consumers have less time to shop. E. Because the use of allowances, deals, and premiums confuse consumers.

 

12. Which of the following developments have resulted in a transfer of power from manufacturers to retailers?  A. The advent of optical scanners and computers gave manufacturers access to sales information. B. Manufacturers are spending more money on media advertising. C. Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout. D. Manufacturers are spending more money on marketing research. E. Manufacturers are introducing more private-label brands.

 

13. One reason for consumer's increased sensitivity to sales promotion is:  A. decrease in competition. B. increased brand loyalty. C. the increased amount of power in the hands of the manufacturers. D. that they save money. E. the decline in consumer choice.

 

14. How are marketers responding to the fragmentation of the consumer market?  A. They are using more direct selling to make event sponsorship more successful. B. They are using less direct marketing. C. They are using more sales promotions that are tied to local events. D. They are employing clipping services to determine the effectiveness of their press releases. E. They have basically ignored the fragmentation of the consumer market and continued doing business as usual.

 

15. What do some businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?  A. The primacy effect B. The more rapid movement of consumers through the hierarchy of effects model C. A habit of frequent repositioning D. Synergistic buying E. The brand management system

 

16. Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on:  A. personal selling instead of mass-media advertising. B. a strategy that eliminates any advertising carryover effect. C. sales promotions such as coupons and price discounts. D. event sponsorships. E. out-of-home advertising media.

 

17. _____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.  A. Incentive marketing B. Accountability marketing C. Account-specific marketing D. Trade marketing E. Franchise building

 

18. Another name for account-specific marketing is:  A. a planogram program. B. comarketing. C. dual sponsorship. D. piggyback marketing. E. key-account communications.

 

19. Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:  A. managers to use advertising to build brand equity. B. managers to use consumer-oriented sales promotion to meet long-term performance goals. C. marketing managers not to use promotions to help get orders from retailers. D. the use of price-oriented promotions to generate short-term sales. E. long - term increased sales of the companies.

 

20. Hasbro, a toy company, teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores. This is an example of:  A. incentive marketing. B. a franchise building promotion. C. brand equity building. D. account-specific marketing. E. brand extension.

 

21. Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of:  A. incentive marketing. B. a franchise building promotion. C. brand equity building. D. account-specific marketing. E. horizontal cooperative integration

 

22. Which of the following explains the reason for the increase in sales promotion activities over the last decade?  A. The increase of brand loyalty in many product categories B. The tremendous decrease in the number of new products C. The increased emphasis on long term strategy and performance by most companies D. The advertising clutter problem E. Increased long-term focus of the companies

 

23. A promotional offer in an ad can _____ that is prevalent in most media today.  A. increase the clutter B. break through the clutter C. decrease competition D. increase brand loyalty E. inhibit flighting

 

24. Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:  A. retailer power. B. ad readership scores. C. brand equity. D. promotional traps. E. consumer primacy.

 

25. _____ is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand.  A. Brand position B. Patent C. Brand equity D. Customer loyalty E. Logo

 

26. Brand equity is also known as:  A. customer loyalty. B. customer franchise. C. brand position. D. brand logo. E. trademark.

 

27. Which of the following statements describes how brand equity is affected by the increased role of sales promotion?  A. Critics argue sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C. Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to decline in brand equity. D. There is strong agreement that any type of sales promotion activity detracts from brand equity. E. Marketing experts generally agree that sales promotion plays an important role in building and maintaining a brand's image and position.

 

28. 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. franchise building promotions. C. high-involvement sales promotions. D. sales promotion traps. E. event marketing.

 

29. Which of the following is an example of consumer franchise building promotion?  A. Frequent flyer program of Lufthansa airways that gives the customer points on each travel that can be redeemed against various other purchases. B. ‘Buy one get one free' offer by Heinz ketchup. C. ‘Flat 30%' off on all merchandise at Nike exclusive stores only. D. Limited offer of ‘Get a toothbrush free along with a 50gm toothpaste' by Crest. E. A premium by Kellogg's that provides the customer with ‘Zip Zap toy' along with the purchase of a 200gm pack of ‘Kellogg's Chocos'.

 

30. In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rican hospitality is "As Easy As Saying I Do." The contest is an example of:  A. a nonfranchise building promotion. B. a franchise building promotion. C. a high-involvement sales promotion. D. a sales promotion trap. E. event marketing.

 

31. Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of:  A. a nonfranchise building promotion. B. a franchise building promotion. C. a high-involvement sales promotion. D. a sales promotion trap. E. event marketing.

 

32. Which of the following is an example of a sales promotion that can be used to contribute to franchise building?  A. A 50-cents off coupon on a box of Minute Rice to encourage repurchase. B. A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand. C. A $50-rebate offer on the purchase of a Lane cedar chest. D. A price reduction of $5 on a pair of Lee jeans. E. A ‘buy one get one free' offer on a pack of noodles.

 

33. Consumer-franchise-building for a brand:  A. is the exclusive responsibility of advertising. B. is accomplished through short-term price-oriented promotions. C. is impossible to achieve through consumer promotions. D. can be accomplished through consumer promotions that reinforce established brand images or positioning. E. is becoming less important to marketers as competition intensifies.

 

34. 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

 

35. Van Kamp Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to:  A. encourage consumers to buy on the basis of price. B. build and maintain store equity for retailers that carry the Van Kamp brand. C. build relationships with the traders. D. build a Van Kamp brand identity and image. E. encourage retailers to use Van Kamp's planograms.

 

36. 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. sweepstakes. D. image promotions. E. trade promotions.

 

37. 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.

 

38. When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to:  A. defend the brand's customer base. B. obtain trial and repurchase. C. target a specific market. D. increase consumption of an established brand. E. create long-term brand equity.

 

39. Promotional incentives such as coupons or refund offers are often included with a sample to:  A. develop customer loyalty. B. build customer relationship management. C. create awareness. D. encourage repeat purchase. E. impart information.

 

40. The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:  A. attract non-users of the product category. B. identify new uses for the brand. C. defend current customers. D. show new usage situation for the brand. E. target a specific market segment.

 

41. Smucker's ran a sweepstakes promoting Smucker's ice cream toppings. The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team. The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's. In this example, a sales promotion was used to:  A. attract non-users of the product category. B. identify new uses for the brand. C. attract users of a competitive brand. D. show new usage situation for the brand. E. target a specific market segment.

 

42. _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.  A. Rebates B. Refunds C. Sampling D. Couponing E. Sweepstakes

 

43. _____ is generally considered the most effective method for generating trial of a new product.  A. Event marketing B. Sampling C. A rebate award D. A bonus pack E. A contest

 

44. Samples would be an appropriate promotional strategy to:  A. support an every day low price (EDLP) strategy. B. as the key tactic in a push promotional strategy. C. introduce a new flavor of sport drink to the marketplace. D. support reminder advertising for a product in the decline stage of its product life cycle. E. to build long term relationship with customers.

 

45. Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because:  A. it cannot be broken down into small sizes. B. it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly. C. it may be too difficult to find a way to distribute the samples. D. consumers may think it is of poor quality since samples are being given away. E. it would create an easily imitated competitive advantage.

 

46. Which of the following is an advantage of the sampling method of sales promotion?  A. It is the least expensive of all other methods of sales promotion. B. The costs of the sampling program can easily be recovered with just a few purchases. C. Results of sampling could be easily seen immediately for all products. D. It is extremely useful for products and services that do not have subtle features. E. Sampling generates much higher trial rates than advertising.

 

47. _____ is used when it is important to control where the sample is delivered.  A. Mail Sampling B. Couponing C. Door-to-door sampling D. On package sampling E. Mobile coupon

 

48. _____ 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

 

49. 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.

 

50. An advantage of coupons is that they:  A. elicit faster consumer response than samples. 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 to consumers who are price sensitive. E. build brand loyalty.

 

51. Which of the following is a disadvantage associated with couponing?  A. It can be difficult to estimate how many consumers will use a coupon and when. B. It is not useful in encouraging trail. C. Response to a coupon is immediate. D. It does not help in encouraging non - users to try a brand. E. It may encourage regular users to trade down to inexpensive brands.

 

52. Which of the following statements is true about couponing?  A. Coupons offer price reductions only to those consumers who are price sensitive. B. Coupons are often used by consumers who are already loyal to the brand. C. Coupons for established brands or products are not redeemed. D. Coupons are more effective than sampling for inducing initial product trial in a short period. E. The redemption rate of coupons is very high.

 

53. The most popular method for distributing coupons is:  A. newspaper freestanding inserts. B. direct mail. C. in/on packs. D. magazines. E. newspaper supplements.

 

54. What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?  A. Precise reach B. Lower cost C. Lower redemption rate D. Lack of geographic and demographic specialization E. Cooperative advertising opportunities

 

55. An in/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. same purchase

 

56. _____ coupons are on/in pack coupons that are redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.  A. Bounce back B. Cross-ruff C. Instant D. Cross sell E. In-store

 

57. 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 immediately at the time of purchase.  A. bounce back B. cross-ruff C. instant D. cross sell E. premium

 

58. On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon.  A. cross-ruff B. bounce-back C. instant D. cross sell E. same purchase

 

59. A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon.  A. cross-ruff B. bounce back C. same purchase coupon D. instant coupon E. rebate coupon

 

60. Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon.  A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

 

61. Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase.  A. bounce-back B. cross-ruff C. instant D. premium E. cross-sell

 

62. Which of the following is a disadvantage associated with bounce back coupons?  A. It does not attract non-users of the particular brand. B. It is redeemable on the purchase of a different product. C. It does not induce customers to repurchase the brand. D. It is not useful for a brand that has reached the maturity stage. E. It is not useful for products that are in their early phases of their life cycle.

 

63. _____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product.  A. On-package B. In-Store C. Shelf-dispensed D. Cross-ruff E. Instant

 

64. Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand?  A. Direct mail coupons B. Event marketing C. Coupons distributed through freestanding inserts in newspapers D. In-store coupons E. Spiffs

 

65. Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?  A. On-package coupons B. Bounce back coupons C. In package coupons D. Checkout coupons E. Direct mail coupons

 

66. Electronically dispensed checkout coupons:  A. generate impulse buying and product trial. B. have no redemption deadline. C. are available at Web sites and must be printed off 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 could be ripped off and redeemed immediately.

 

67. A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase.  A. coupon B. sample C. premium D. rebate E. off-price deal

 

68. Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a:  A. coupon. B. sample. C. free premium. D. rebate. E. self-liquidating premium.

 

69. Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a:  A. free premium. B. self-liquidating premium. C. rebate. D. bonus pack. E. non-subsidized premium.

 

70. Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.  A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost

 

71. Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium.  A. cost-covered B. self-liquidating C. subsidized D. cost-plus E. base-cost

 

72. Which of the following statements about the use of premiums as a sales promotion tool is true?  A. The use of premiums is very popular among fast food restaurants as a way of attracting children. B. Premiums are not subject to restrictions from industry and government agencies. C. Redemption rates for mail-in premium offers are very high. D. Consumers are always required to pay at least some of the costs of a premium offer. E. Mail-in premiums offer immediate reinforcement to the purchaser.

 

73. Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?  A. Many of the premiums used by these companies have cross-promotional tie-ins with popular movies. B. Most of the premiums used by these companies are self-liquidating. C. Many of the premium offers used by these companies are targeted at adults. D. Most of the premium offers used by these restaurants are not effective at generating incremental sales. E. Free premiums always produce positive public relations for the company providing them.

 

74. Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch instead of the Kellogg's logo would:  A. detract from the consumer franchise building value of the promotion. B. create problems in supply and demand. C. make inventory forecasting easier. D. fully support Kellogg's in its consumer franchise building promotion. E. make it unnecessary for Kellogg's to run a nonfranchise building promotion.

 

75. An effective premium is one that:  A. distracts consumers from the firm's main reason for existing. B. ties into the overall positioning and communications campaign of the brand. C. induces one-time trial purchase of a brand for which there is low awareness. D. encourages repeat purchase of some brand other than that for which the premium is delivered. E. has no impact on an organization's pioneering advertising.

 

76. Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?  A. A free tube of Colgate toothpaste in a box of Life cereal B. A pack of baseball cards in a box of Cheerios cereal C. A free sport bottle with the purchase of a four-pack of Gatorade D. A dish towel in a box of Tide laundry detergent E. A pack of golf tees inside a box of golf balls

 

77. With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a(n) _____ winners are determined purely by chance.  A. sweepstakes; contest B. contest; sweepstakes C. contest; event sponsorship D. sweepstakes; event sponsorship E. contest; rebate

 

78. Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique.  A. contests; sweepstakes B. sweepstakes; contests C. sweepstakes; premiums D. contests; premiums E. contests; rebates

 

79. Arm & Hammer maker of Crystal Blend scoopable cat litter, Super Scoop, the baking soda clumping litter, Super Clay, the premium lightweight clay litter, and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000, and several smaller prizes were awarded to other participants. The most likely reason why Arm & Hammer used this contest was to:  A. move consumers to the conviction stage of the hierarchy of effects model. B. reposition the brand name. C. create an easily measured ad recency effect. D. generate excitement and interest about the Arm & Hammer brand cat litters. E. get users of other brands to try Arm & Hammer brand.

 

80. Sweepstakes and contests:  A. are primarily used to move consumers into 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 one another.

 

81. 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. Sampling B. Premiums C. Contests and sweepstakes D. Event sponsorships E. Bonus packs

 

82. Which of the following statements is true about rebates?  A. Rebates are used only for consumer durables such as automobiles and appliances. B. Most retailers want to be involved with rebate programs. C. Nonusers of rebates have been shown to 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.

 

83. The redemption rate for refunds is lower than that for coupons because:  A. the payoff is smaller. B. the reinforcement is immediate. C. more effort is required. D. the payoff is larger. E. the offers tend to expire very quickly.

 

84. Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same price as twelve balls. This is an example of a:  A. price-off deal. B. premium. C. bonus pack. D. rebate. E. trade allowance.

 

85. Bonus packs:  A. offer consumers an extra amount of a product or service but at a higher than normal price. B. provide marketers with a way to provide extra value to consumers without having them to do anything other 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.

 

86. 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 pack. B. rebate. C. refund offer. D. bounce back coupon. E. price-off deal.

 

87. Super-Sav supermarket gives customers VIC (very important customer) cards, which allows customers to take advantage of additional discounts on certain products and notification of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase cookware, dishes, and other similar hard goods. Super-Sav is using a:  A. bonus program. B. frequency program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.

 

88. Every time Beth buys a book at Waldenbooks, she presents her Waldenbooks 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. bonus program. B. frequency program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.

 

89. Why have frequency programs become so popular with marketers?  A. Frequency programs support the goal of customer retention. B. Frequency programs are especially effective when used for a new product introduction. C. Frequency programs are a type of sweepstakes that generate a great deal of consumer interest. D. Frequency programs allow marketers to set cookies so they can track consumers' activities. E. Frequency programs are a promotional form of brand extension strategies.

 

90. Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of:  A. premiums. B. trade shows. C. exhibitions. D. event marketing. E. contests.

 

91. May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in:  A. a self-liquidating premium. B. a trade show. C. an exhibition. D. event marketing. E. a corporate contest.

 

92. Which of the following statements about event sponsorships 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. Decisions and objectives for event sponsorships 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.

 

93. 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. pull money. C. push money. D. pricing promotions. E. promotional allowances.

 

94. 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

 

95. An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators. This payment is known as:  A. a slotting fee. B. coop money. C. a spiff. D. pull money. E. a trade allowance.

 

96. Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:  A. pull money. B. a rebate. C. a spiff. D. an off-invoice allowance. E. a slotting fee.

 

97. 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.

 

98. Ocean Spray offers its retail accounts a $3.00 per case discount on all of the cranberry juice they purchase 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 coop allowance.

 

99. Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called:  A. cooperative advertising. B. push monies. C. advertising subsidies. D. promotional allowances. E. slotting allowances.

 

100. 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. new product fees. E. trade discounts.

 

101. Which of the following statements is true about the slotting allowances charged by many retailers?  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.

 

102. 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 allowances. C. push monies. D. slotting fees. E. street monies.

 

103. A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers.  A. slotting plan B. planogram C. promotional layout D. retail format E. store layout

 

104. Nordica provides sales personnel in ski shops with training 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. a planogram. C. sales training programs. D. event marketing. E. spiffs.

 

105. _____ 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

 

106. The five resorts in the Bahamas that combined their promotional budgets to sponsor an "It's better in the Bahamas'" ad campaign, is an example of:  A. horizontal cooperative advertising. B. vertical cooperative advertising. C. integrated dyadic communications. D. ingredient-producer co-op advertising. E. a joint trade promotion.

 

107. Intel and several different manufacturers of personal computers have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. Intel and the PC manufacturers are using:  A. cooperative advertising. B. forward promotion. C. dyadic communications. D. comparative advertising. E. diverting.

 

108. _____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market.  A. Horizontal cooperative advertising B. Vertical cooperative advertising C. Indirect advertising D. Ingredient-sponsored cooperative advertising E. Dyadic communication

 

109. _____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials.  A. Vertical cooperative advertising B. Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Support advertising E. Integrated dyadic communications

 

110. The "Visa on the Label" program under which Visa provides uniform and linen manufacturers with advertising monies based on the number of yards of Visa fabric they buy from the company is an example of:  A. vertical cooperative advertising. B. ingredient-sponsored cooperative advertising. C. horizontal cooperative advertising. D. a rebate cooperative advertising. E. a sales training program.

 

111. When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising.  A. horizontal cooperative B. vertical cooperative C. dyadic D. ingredient-producer cooperative E. aggregated

 

112. 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. joint trade promotions. E. reseller advertising.

 

113. When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect.  A. stimulus-response B. symbiotic C. hierarchical D. synergistic E. dyadic

 

114. Which of the following statements is true about the coordination of advertising and sales promotion efforts?  A. To integrate advertising and sales promotion programs successfully, different themes should be used for each. B. Consumers are less likely to redeem a coupon or respond to a price-off deal for a brand they are familiar with than one they know nothing about. C. Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising. D. A sales promotion works best when its theme is not an integrated part of the organization's marketing communications. E. Media support for a sales promotion program should not be coordinated with the media program for the ad campaign.

 

115. 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. consumer really does not care about which brand is purchased. E. purchase is internally motivated and unaffected by an external incentive.

 

116. Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami. Then United and other airlines immediately matched the offer, and it was believed for a long time that they all must continue the program or lose their competitive position. This situation is an example of:  A. a synergistic effect. B. a sales promotional trap or spiral. C. a multilevel sales promotion. D. a trade-off allowance. E. the attribution theory in operation.

 

117. Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?  A. the use of celebrity spokespersons such as Shaquille O'Neill B. the addition of new items to the menus of fast food chains C. the use of 99-cent specials to promote popular items such as Burger King's Whopper and McDonald's Big Mac D. the location of fast food restaurants in airports and on college campuses E. the promotional tying of fast food with movies

 

118. In many areas of the country, supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:  A. a synergistic effect allowing for diversification and a push toward energy independence. B. devaluing what consumers think the manufacturers' products are worth. C. decreased brand equity. D. reduced profit margins. E. the creative destruction theory in operation.

 

Chapter 16 Sales Promotion Answer Key  

 

Multiple Choice Questions  

1. (p. 520) ______ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale.  A. Brand advertising B.  Sales promotion C. Direct marketing D. Promotional allowance E. Specialty marketing

Sales promotion has been defined as "a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale."

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

2. (p. 520) Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?  A. Advertising B. Direct mail C. Public relations D. Price E.  Sales promotion

Sales promotion involves some type of inducement that provides an extra incentive to buy.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

3. (p. 521) When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):  A. brand franchise building promotion. B. brand equity building promotion. C.  acceleration tool. D. value added tool. E. promotional marketing tool.

Companies also use limited-time offers such as price-off deals to retailers or a coupon with an expiration date to accelerate the purchase process.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

4. (p. 521) Coupons, bonus packs, premiums, and samples are promotional offers that are targeted towards:  A.  consumers. B. retailers. C. wholesalers. D. salespeople. E. employees.

Activities involved in consumer-oriented sales promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

5. (p. 521) Consumer-oriented sales promotions are part of a promotional _____ strategy.  A. cooperative B.  pull C. trade D. premium E. push

Consumer-oriented promotions are part of a promotional pull strategy.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

6. (p. 521) Which of the following is an example of consumer-oriented sales promotion activity?  A. Off-invoice allowances B. Promotional allowances C. Point-of-purchase displays D. Trade shows E.  Coupons

Activities involved in consumer-oriented sales promotion include sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs, price-offs, frequency programs, and event marketing.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

7. (p. 521) Which of the following is an example of trade-oriented sales promotion activity?  A. Samples B. Coupons C. Refunds/rebates D.  Trade shows E. Bonus packs

Trade-oriented sales promotion includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

8. (p. 521) Which of the following statements is true about sales promotion programs?  A. Sales promotion programs are targeted only at consumers. B.  Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers. C. Nearly three quarters of all sales promotion dollars are spent on consumer promotions. D. Sales promotion strategies aimed at customers are called push strategies. E. Sales promotion strategies aimed at marketing intermediaries are called pull strategies.

Trade-oriented sales promotion includes dealer contests and incentives, trade allowances, point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: The Scope and Role of Sales Promotion  

9. (p. 523) 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 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. There is no difference between how marketers used to treat sales promotions and how they treat them now.

In the past, sales promotion specialists would be brought in after key strategic branding decisions were made. However, many companies are now making promotional specialists part of their strategic brand-building team, a move that puts sales promotion on par with media advertising.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

10. (p. 523) Which of the following serves as a reason for the increase in sales promotion?  A.  Power shift in market place from manufactures to retailers B. Increasing brand loyalty of the customers C. Need for long-term increase in sales D. Decreased promotional sensitivity E. Decreased competition

One reason for the increase in sales promotion is the power shift in the marketplace from manufacturers to retailers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

11. (p. 523) Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before?  A. Because they want to use sales promotions rather than engage in price wars. B.  Because they are convinced that sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements. C. Because the use of sales promotions allows them to cut back and/or completely eliminate the use of coupons. D. Because consumers have less time to shop. E. Because the use of allowances, deals, and premiums confuse consumers.

In the past, sales promotion specialists would be brought in after key strategic branding decisions were made. However, many companies are now making promotional specialists part of their strategic brand-building team, a move that puts sales promotion on par with media advertising.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

12. (p. 524) Which of the following developments have resulted in a transfer of power from manufacturers to retailers?  A. The advent of optical scanners and computers gave manufacturers access to sales information. B. Manufacturers are spending more money on media advertising. C.  Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout. D. Manufacturers are spending more money on marketing research. E. Manufacturers are introducing more private-label brands.

One factor that has increased the power of retailers is the consolidation of the grocery store industry, which has resulted in larger chains with greater buying power and clout.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

13. (p. 525) One reason for consumer's increased sensitivity to sales promotion is:  A. decrease in competition. B. increased brand loyalty. C. the increased amount of power in the hands of the manufacturers. D.  that they save money. E. the decline in consumer choice.

An obvious reason for consumers' increased sensitivity to sales promotion offers is that they save money.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

14. (p. 525) How are marketers responding to the fragmentation of the consumer market?  A. They are using more direct selling to make event sponsorship more successful. B. They are using less direct marketing. C.  They are using more sales promotions that are tied to local events. D. They are employing clipping services to determine the effectiveness of their press releases. E. They have basically ignored the fragmentation of the consumer market and continued doing business as usual.

As the consumer market becomes more fragmented and traditional mass-media-based advertising less effective, marketers are turning to more segmented, highly targeted approaches. Sales promotion tools have become one of the primary vehicles for doing this, through programs tied into local flavor, themes, or events.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

15. (p. 526) What do some businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?  A. The primacy effect B. The more rapid movement of consumers through the hierarchy of effects model C. A habit of frequent repositioning D. Synergistic buying E.  The brand management system

Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on sales promotion.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

16. (p. 526) Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on:  A. personal selling instead of mass-media advertising. B. a strategy that eliminates any advertising carryover effect. C.  sales promotions such as coupons and price discounts. D. event sponsorships. E. out-of-home advertising media.

Managers who are being held accountable to produce results often use price discounts or coupons, since they produce a quick and easily measured jump in sales.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

17. (p. 526) _____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.  A. Incentive marketing B. Accountability marketing C.  Account-specific marketing D. Trade marketing E. Franchise building

A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

18. (p. 526) Another name for account-specific marketing is:  A. a planogram program. B.  comarketing. C. dual sponsorship. D. piggyback marketing. E. key-account communications.

A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

19. (p. 526) Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:  A. managers to use advertising to build brand equity. B. managers to use consumer-oriented sales promotion to meet long-term performance goals. C. marketing managers not to use promotions to help get orders from retailers. D.  the use of price-oriented promotions to generate short-term sales. E. long - term increased sales of the companies.

Many businesspeople believe the increase in sales promotion is motivated by marketing plans and reward systems geared to short-term performance and the immediate generation of sales volume.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

20. (p. 526) Hasbro, a toy company, teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores. This is an example of:  A. incentive marketing. B. a franchise building promotion. C. brand equity building. D.  account-specific marketing. E. brand extension.

A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

 

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

21. (p. 526) Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of:  A. incentive marketing. B. a franchise building promotion. C. brand equity building. D.  account-specific marketing. E. horizontal cooperative integration

A major development in recent years is account-specific marketing (also referred to as comarketing), whereby a manufacturer collaborates with an individual retailer to create a customized promotion that accomplishes mutual objectives.

 

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

22. (p. 527) Which of the following explains the reason for the increase in sales promotion activities over the last decade?  A. The increase of brand loyalty in many product categories B. The tremendous decrease in the number of new products C. The increased emphasis on long term strategy and performance by most companies D.  The advertising clutter problem E. Increased long-term focus of the companies

A promotional offer in an ad can break through the clutter that is prevalent in most media today. A premium offer may help attract consumers' attention to an ad, as will a contest or sweepstakes.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

23. (p. 527) A promotional offer in an ad can _____ that is prevalent in most media today.  A. increase the clutter B.  break through the clutter C. decrease competition D. increase brand loyalty E. inhibit flighting

A promotional offer in an ad can break through the clutter that is prevalent in most media today.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Reasons for the Increase in Sales Promotion  

24. (p. 527) Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:  A. retailer power. B. ad readership scores. C.  brand equity. D. promotional traps. E. consumer primacy.

Some critics argue that sales promotion increases come at the expense of brand equity and every dollar that goes into promotion rather than advertising devalues the brand.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Concerns about the Increased Role of Sales Promotion  

25. (p. 527) _____ is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand.  A. Brand position B. Patent C.  Brand equity D. Customer loyalty E. Logo

Brand equity, or consumer franchise, is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Concerns about the Increased Role of Sales Promotion  

26. (p. 527) Brand equity is also known as:  A. customer loyalty. B.  customer franchise. C. brand position. D. brand logo. E. trademark.

Brand equity, or consumer franchise, is an intangible asset of added value or goodwill that results from consumers' favorable image, impressions of differentiation, and/or strength of attachment to a brand.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Concerns about the Increased Role of Sales Promotion  

27. (p. 527) Which of the following statements describes how brand equity is affected by the increased role of sales promotion?  A. Critics argue sales promotions generally result in higher brand equity. B. Sales promotions do not contribute to the erosion of brand equity. C.  Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to decline in brand equity. D. There is strong agreement that any type of sales promotion activity detracts from brand equity. E. Marketing experts generally agree that sales promotion plays an important role in building and maintaining a brand's image and position.

Marketing experts are concerned that if the trend toward spending more on sales promotion at the expense of media advertising continues, brands may lose the equity that advertising helped create and be forced to compete primarily on the basis of price.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Concerns about the Increased Role of Sales Promotion  

28. (p. 528) 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.  franchise building promotions. C. high-involvement sales promotions. D. sales promotion traps. E. event marketing.

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise building (CFB) promotions.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

29. (p. 528) Which of the following is an example of consumer franchise building promotion?  A.  Frequent flyer program of Lufthansa airways that gives the customer points on each travel that can be redeemed against various other purchases. B. ‘Buy one get one free' offer by Heinz ketchup. C. ‘Flat 30%' off on all merchandise at Nike exclusive stores only. D. Limited offer of ‘Get a toothbrush free along with a 50gm toothpaste' by Crest. E. A premium by Kellogg's that provides the customer with ‘Zip Zap toy' along with the purchase of a 200gm pack of ‘Kellogg's Chocos'.

Consumer franchise-building promotions are designed to build longterm brand preference and help the company achieve the ultimate goal of full-price purchases that do not depend on a promotional offer.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

30. (p. 528) In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rican hospitality is "As Easy As Saying I Do." The contest is an example of:  A. a nonfranchise building promotion. B.  a franchise building promotion. C. a high-involvement sales promotion. D. a sales promotion trap. E. event marketing.

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise building (CFB) promotions.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

31. (p. 528) Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of:  A. a nonfranchise building promotion. B.  a franchise building promotion. C. a high-involvement sales promotion. D. a sales promotion trap. E. event marketing.

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise building (CFB) promotions.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

32. (p. 528) Which of the following is an example of a sales promotion that can be used to contribute to franchise building?  A. A 50-cents off coupon on a box of Minute Rice to encourage repurchase. B.  A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand. C. A $50-rebate offer on the purchase of a Lane cedar chest. D. A price reduction of $5 on a pair of Lee jeans. E. A ‘buy one get one free' offer on a pack of noodles.

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are consumer franchise building (CFB) promotions.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

33. (p. 529) Consumer-franchise-building for a brand:  A. is the exclusive responsibility of advertising. B. is accomplished through short-term price-oriented promotions. C. is impossible to achieve through consumer promotions. D.  can be accomplished through consumer promotions that reinforce established brand images or positioning. E. is becoming less important to marketers as competition intensifies.

Most sales promotion agencies recognize the importance of developing consumer and trade promotions that can help build brand equity.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

34. (p. 530) 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

Price-off deals, bonus packs, and rebates or refunds are examples of non-FB sales promotion techniques.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

35. (p. 530) Van Kamp Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to:  A. encourage consumers to buy on the basis of price. B. build and maintain store equity for retailers that carry the Van Kamp brand. C. build relationships with the traders. D.  build a Van Kamp brand identity and image. E. encourage retailers to use Van Kamp's planograms.

Most trade promotions that are forwarded through the channels reach consumers in the form of lower prices or special deals and lead them to buy on the basis of price rather than brand equity.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

36. (p. 530) 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. sweepstakes. D. image promotions. E. trade promotions.

Nonfranchise-building (non-FB) promotions are designed to accelerate the purchase decision process and generate an immediate increase in sales.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

37. (p. 530) 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.

Trade promotions receive the most criticism for being nonfranchise building. Many specialists in the promotional area stress the need for marketers to use sales promotion tools to build a franchise and create long-term continuity in their promotional programs.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-01 To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important. Topic: Consumer Franchise-Building versus Nonfranchise-Building Promotions  

38. (p. 531) When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to:  A. defend the brand's customer base. B.  obtain trial and repurchase. C. target a specific market. D. increase consumption of an established brand. E. create long-term brand equity.

Promotional incentives such as coupons or refund offers are often included with a sample to encourage repeat purchase after trial.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-02 To examine the various objectives of sales promotion programs. Topic: Objectives of Consumer-Oriented Sales Promotion  

39. (p. 531) Promotional incentives such as coupons or refund offers are often included with a sample to:  A. develop customer loyalty. B. build customer relationship management. C. create awareness. D.  encourage repeat purchase. E. impart information.

Promotional incentives such as coupons or refund offers are often included with a sample to encourage repeat purchase after trial.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-02 To examine the various objectives of sales promotion programs. Topic: Objectives of Consumer-Oriented Sales Promotion  

40. (p. 532) The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:  A. attract non-users of the product category. B. identify new uses for the brand. C.  defend current customers. D. show new usage situation for the brand. E. target a specific market segment.

Special price promotions, coupons, or bonus packs can encourage consumers to stock up on the brand. This not only keeps them using the company's brand but also reduces the likelihood they will switch brands in response to a competitor's promotion.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-02 To examine the various objectives of sales promotion programs. Topic: Objectives of Consumer-Oriented Sales Promotion  

41. (p. 532) Smucker's ran a sweepstakes promoting Smucker's ice cream toppings. The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team. The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's. In this example, a sales promotion was used to:  A. attract non-users of the product category. B. identify new uses for the brand. C. attract users of a competitive brand. D. show new usage situation for the brand. E.  target a specific market segment.

Many marketers are finding that sales promotion tools such as contests and sweepstakes, events, coupons, and samplings are very effective ways to reach specific geographic, demographic, psychographic, and ethnic markets.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-02 To examine the various objectives of sales promotion programs. Topic: Objectives of Consumer-Oriented Sales Promotion  

42. (p. 533) _____ involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.  A. Rebates B. Refunds C.  Sampling D. Couponing E. Sweepstakes

Sampling involves a variety of procedures whereby consumers are given some quantity of a product for no charge to induce trial.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

43. (p. 533) _____ is generally considered the most effective method for generating trial of a new product.  A. Event marketing B.  Sampling C. A rebate award D. A bonus pack E. A contest

Sampling is generally considered the most effective way to generate trial, although it is also the most expensive.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

44. (p. 533) Samples would be an appropriate promotional strategy to:  A. support an every day low price (EDLP) strategy. B. as the key tactic in a push promotional strategy. C.  introduce a new flavor of sport drink to the marketplace. D. support reminder advertising for a product in the decline stage of its product life cycle. E. to build long term relationship with customers.

As a sales promotion technique, sampling is often used to introduce a new product or brand to the market.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

45. (p. 534) Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because:  A. it cannot be broken down into small sizes. B.  it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly. C. it may be too difficult to find a way to distribute the samples. D. consumers may think it is of poor quality since samples are being given away. E. it would create an easily imitated competitive advantage.

For an effective sampling program, the products should be divisible, which means they marketers should be able to break them into small sample sizes that are adequate for demonstrating the brand's features and benefits to the user.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

46. (p. 534) Which of the following is an advantage of the sampling method of sales promotion?  A. It is the least expensive of all other methods of sales promotion. B. The costs of the sampling program can easily be recovered with just a few purchases. C. Results of sampling could be easily seen immediately for all products. D. It is extremely useful for products and services that do not have subtle features. E.  Sampling generates much higher trial rates than advertising.

Sampling generates much higher trial rates than advertising or other sales promotion techniques.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

47. (p. 534) _____ is used when it is important to control where the sample is delivered.  A. Mail Sampling B. Couponing C.  Door-to-door sampling D. On package sampling E. Mobile coupon

Door-to-door sampling, in which the product is delivered directly to the prospect's residence, is used when it is important to control where the sample is delivered.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

48. (p. 535) _____ 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

Sampling through the mail is common for small, lightweight, non-perishable products.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Sampling  

49. (p. 536) 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.

The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

50. (p. 536) An advantage of coupons is that they:  A. elicit faster consumer response than samples. 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 to consumers who are price sensitive. E. build brand loyalty.

Coupons make it possible to offer a price reduction only to those consumers who are price-sensitive.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

51. (p. 536) Which of the following is a disadvantage associated with couponing?  A.  It can be difficult to estimate how many consumers will use a coupon and when. B. It is not useful in encouraging trail. C. Response to a coupon is immediate. D. It does not help in encouraging non - users to try a brand. E. It may encourage regular users to trade down to inexpensive brands.

There are a number of problems with coupons. First, it can be difficult to estimate how many consumers will use a coupon and when.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

52. (p. 537) Which of the following statements is true about couponing?  A. Coupons offer price reductions only to those consumers who are price sensitive. B.  Coupons are often used by consumers who are already loyal to the brand. C. Coupons for established brands or products are not redeemed. D. Coupons are more effective than sampling for inducing initial product trial in a short period. E. The redemption rate of coupons is very high.

A problem associated with using coupons to attract new users to an established brand is that it is difficult to prevent the coupons from being used by consumers who already use the brand.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

53. (p. 538) The most popular method for distributing coupons is:  A.  newspaper freestanding inserts. B. direct mail. C. in/on packs. D. magazines. E. newspaper supplements.

Distribution through newspaper freestanding inserts is by far the most popular method for delivering coupons to consumers, accounting for 86 percent of all coupons distributed.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

54. (p. 538) What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?  A.  Precise reach B. Lower cost C. Lower redemption rate D. Lack of geographic and demographic specialization E. Cooperative advertising opportunities

Direct-mail couponing has several advantages. First, the mailing can be sent to a broad audience or targeted to specific geographic or demographic markets such as teenagers, senior citizens, Hispanics, and other market segments.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

55. (p. 540) An in/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. same purchase

An in/on-pack coupon that is redeemable for the next purchase of the same brand is known as a bounce-back coupon.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

56. (p. 540) _____ coupons are on/in pack coupons that are redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.  A. Bounce back B.  Cross-ruff C. Instant D. Cross sell E. In-store

One of the in/on-pack coupons is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

57. (p. 540) 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 immediately at the time of purchase.  A. bounce back B. cross-ruff C.  instant D. cross sell E. premium

A type of package coupon is the instant coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

58. (p. 540) On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon.  A. cross-ruff B.  bounce-back C. instant D. cross sell E. same purchase

An in/on-pack coupon that is redeemable for the next purchase of the same brand is known as a bounce-back coupon.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

59. (p. 540) A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon.  A.  cross-ruff B. bounce back C. same purchase coupon D. instant coupon E. rebate coupon

A type of in/on-pack coupon is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

60. (p. 540) Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon.  A. bounce-back B.  cross-ruff C. instant D. premium E. cross-sell

A type of in/on-pack coupon is the cross-ruff coupon, which is redeemable on the purchase of a different product, usually one made by the same company but occasionally through a tie-in with another manufacturer.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

61. (p. 540) Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase.  A. bounce-back B. cross-ruff C.  instant D. premium E. cross-sell

One type of package coupon is the instant coupon, which is attached to the outside of the package so the consumer can rip it off and redeem it immediately at the time of purchase.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

62. (p. 540) Which of the following is a disadvantage associated with bounce back coupons?  A.  It does not attract non-users of the particular brand. B. It is redeemable on the purchase of a different product. C. It does not induce customers to repurchase the brand. D. It is not useful for a brand that has reached the maturity stage. E. It is not useful for products that are in their early phases of their life cycle.

The main limitation of bounce-back coupons is that they go only to purchasers of the brand and thus do not attract nonusers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

63. (p. 541) _____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product.  A. On-package B.  In-Store C. Shelf-dispensed D. Cross-ruff E. Instant

One popular way to distribute in-store coupons is through electronic devices such as kiosks or at the checkout counter. When the specified product, such as a competitive brand, is purchased, the consumer receives a coupon at the checkout for the company's brand.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

64. (p. 541) Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand?  A. Direct mail coupons B. Event marketing C. Coupons distributed through freestanding inserts in newspapers D.  In-store coupons E. Spiffs

Most of the coupons distributed in stores are through instant coupon machines. These coupon dispensers are mounted on the shelf in front of the product being promoted and have blinking red lights to draw consumers' attention to the savings opportunity.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

65. (p. 541) Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?  A. On-package coupons B. Bounce back coupons C. In package coupons D.  Checkout coupons E. Direct mail coupons

One popular way to distribute in-store coupons is through electronic devices such as kiosks or at the checkout counter. When the specified product, such as a competitive brand, is purchased, the consumer receives a coupon at the checkout for the company's brand.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

66. (p. 541) Electronically dispensed checkout coupons:  A. generate impulse buying and product trial. B. have no redemption deadline. C. are available at Web sites and must be printed off 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 could be ripped off and redeemed immediately.

Major advantages of electronically dispensed checkout coupons are that they are cost-effective and can be targeted to specific categories of consumers, such as users of competitive or complementary products.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Couponing  

67. (p. 542) A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase.  A. coupon B. sample C.  premium D. rebate E. off-price deal

A premium is an offer of an item of merchandise or service either free or at a low price that is an extra incentive for purchasers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

68. (p. 542) Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a:  A. coupon. B. sample. C.  free premium. D. rebate. E. self-liquidating premium.

Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

69. (p. 542) Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a:  A.  free premium. B. self-liquidating premium. C. rebate. D. bonus pack. E. non-subsidized premium.

Free premiums are usually small gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

70. (p. 543) Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.  A. cost-covered B.  self-liquidating C. subsidized D. cost-plus E. base-cost

Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

71. (p. 543) Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium.  A. cost-covered B.  self-liquidating C. subsidized D. cost-plus E. base-cost

Self-liquidating premiums require the consumer to pay some or all of the cost of the premium plus handling and mailing costs.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

72. (p. 543) Which of the following statements about the use of premiums as a sales promotion tool is true?  A.  The use of premiums is very popular among fast food restaurants as a way of attracting children. B. Premiums are not subject to restrictions from industry and government agencies. C. Redemption rates for mail-in premium offers are very high. D. Consumers are always required to pay at least some of the costs of a premium offer. E. Mail-in premiums offer immediate reinforcement to the purchaser.

Free premiums have become very popular in the restaurant industry, particularly among fast-food chains such as McDonald's and Burger King, which use premium offers in their kids' meals to attract children.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

73. (p. 543) Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?  A.  Many of the premiums used by these companies have cross-promotional tie-ins with popular movies. B. Most of the premiums used by these companies are self-liquidating. C. Many of the premium offers used by these companies are targeted at adults. D. Most of the premium offers used by these restaurants are not effective at generating incremental sales. E. Free premiums always produce positive public relations for the company providing them.

Many of the premium offers used by the fast-food giants have cross-promotional tie-ins with popular movies and can be very effective at generating incremental sales.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

74. (p. 544) Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch instead of the Kellogg's logo would:  A.  detract from the consumer franchise building value of the promotion. B. create problems in supply and demand. C. make inventory forecasting easier. D. fully support Kellogg's in its consumer franchise building promotion. E. make it unnecessary for Kellogg's to run a nonfranchise building promotion.

The use premium with no brand identification detracts them from their consumer franchise-building value.

 

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

75. (p. 544) An effective premium is one that:  A. distracts consumers from the firm's main reason for existing. B.  ties into the overall positioning and communications campaign of the brand. C. induces one-time trial purchase of a brand for which there is low awareness. D. encourages repeat purchase of some brand other than that for which the premium is delivered. E. has no impact on an organization's pioneering advertising.

Self-liquidating premiums are often tied directly to the advertising campaign, so they extend the advertising message and contribute to consumer franchise building for a brand.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

76. (p. 544) Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?  A. A free tube of Colgate toothpaste in a box of Life cereal B. A pack of baseball cards in a box of Cheerios cereal C.  A free sport bottle with the purchase of a four-pack of Gatorade D. A dish towel in a box of Tide laundry detergent E. A pack of golf tees inside a box of golf balls

The marketer usually purchases items used as self-liquidating premiums in large quantities and offers them to consumers at lower-than-retail prices. The goal is not to make a profit on the premium item but rather just to cover costs and offer a value to the consumer. Self-liquidating premiums are often tied directly to the advertising campaign, so they extend the advertising message and contribute to consumer franchise building for a brand.

 

AACSB: Reflective Thinking Bloom's: Analyze Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Premiums  

77. (p. 545; 546) With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a(n) _____ winners are determined purely by chance.  A. sweepstakes; contest B.  contest; sweepstakes C. contest; event sponsorship D. sweepstakes; event sponsorship E. contest; rebate

A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. A sweepstakes is a promotion where winners are determined purely by chance.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Contest and Sweepstakes  

78. (p. 546) Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique.  A. contests; sweepstakes B.  sweepstakes; contests C. sweepstakes; premiums D. contests; premiums E. contests; rebates

Because they are easier to enter, sweepstakes attract more entries than contests.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Contest and Sweepstakes  

79. (p. 545) Arm & Hammer maker of Crystal Blend scoopable cat litter, Super Scoop, the baking soda clumping litter, Super Clay, the premium lightweight clay litter, and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000, and several smaller prizes were awarded to other participants. The most likely reason why Arm & Hammer used this contest was to:  A. move consumers to the conviction stage of the hierarchy of effects model. B. reposition the brand name. C. create an easily measured ad recency effect. D.  generate excitement and interest about the Arm & Hammer brand cat litters. E. get users of other brands to try Arm & Hammer brand.

Marketers are attracted to contests and sweepstakes as a way of generating attention and interest among a large number of consumers.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Contest and Sweepstakes  

80. (p. 545) Sweepstakes and contests:  A. are primarily used to move consumers into 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 one another.

Marketers are attracted to contests and sweepstakes as a way of generating attention and interest among a large number of consumers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Contest and Sweepstakes  

81. (p. 547) 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. Sampling B. Premiums C.  Contests and sweepstakes D. Event sponsorships E. Bonus packs

One problem with contests and sweepstakes is the participation in them by hobbyists who submit entries but have no real interest in the product or service.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Contest and Sweepstakes  

82. (p. 547) Which of the following statements is true about rebates?  A. Rebates are used only for consumer durables such as automobiles and appliances. B. Most retailers want to be involved with rebate programs. C.  Nonusers of rebates have been shown to 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.

Nonusers of rebates were particularly likely to perceive the redemption process as too complicated and to suspect manufacturers' motives.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Refunds and Rebates  

83. (p. 547) The redemption rate for refunds is lower than that for coupons because:  A. the payoff is smaller. B. the reinforcement is immediate. C.  more effort is required. D. the payoff is larger. E. the offers tend to expire very quickly.

Nonusers of rebates were particularly likely to perceive the redemption process as too complicated and to suspect manufacturers' motives.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Refunds and Rebates  

84. (p. 549) Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same price as twelve balls. This is an example of a:  A. price-off deal. B. premium. C.  bonus pack. D. rebate. E. trade allowance.

Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Bonus Packs  

85. (p. 550) Bonus packs:  A. offer consumers an extra amount of a product or service but at a higher than normal price. B.  provide marketers with a way to provide extra value to consumers without having them to do anything other 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.

Bonus packs give marketers a direct way to provide extra value without having to get involved with complicated coupons or refund offers.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Bonus Packs  

86. (p. 550-551) 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 pack. B. rebate. C. refund offer. D. bounce back coupon. E.  price-off deal.

Price-off reductions are typically offered right on the package through specially marked price packs.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Price-off Deals  

87. (p. 552) Super-Sav supermarket gives customers VIC (very important customer) cards, which allows customers to take advantage of additional discounts on certain products and notification of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase cookware, dishes, and other similar hard goods. Super-Sav is using a:  A. bonus program. B.  frequency program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.

Many packaged-goods companies and others have recently introduced continuity programs (also known as loyalty and frequency programs) that offer consumers the opportunity to accumulate points for continuing to purchase their brands; the points can be redeemed for gifts and prizes.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Loyalty Programs  

88. (p. 552) Every time Beth buys a book at Waldenbooks, she presents her Waldenbooks 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. bonus program. B.  frequency program. C. customer rewards contest. D. self-liquidating promotion. E. subsidized program.

Many packaged-goods companies and others have recently introduced continuity programs (also known as loyalty and frequency programs) that offer consumers the opportunity to accumulate points for continuing to purchase their brands; the points can be redeemed for gifts and prizes.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Loyalty Programs  

89. (p. 552) Why have frequency programs become so popular with marketers?  A.  Frequency programs support the goal of customer retention. B. Frequency programs are especially effective when used for a new product introduction. C. Frequency programs are a type of sweepstakes that generate a great deal of consumer interest. D. Frequency programs allow marketers to set cookies so they can track consumers' activities. E. Frequency programs are a promotional form of brand extension strategies.

There are a number of reasons why loyalty programs have become so popular. Marketers view these programs as a way of encouraging consumers to use their products or services on a continual basis and as a way of developing strong customer loyalty and retention.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Loyalty Programs  

90. (p. 553) Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of:  A. premiums. B. trade shows. C. exhibitions. D.  event marketing. E. contests.

Marketers often do event marketing by associating their product with some popular activity such as a sporting event, concert, fair, or festival.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Event Marketing  

91. (p. 553) May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in:  A. a self-liquidating premium. B. a trade show. C. an exhibition. D.  event marketing. E. a corporate contest.

Event marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Event Marketing  

92. (p. 553) Which of the following statements about event sponsorships 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.  Decisions and objectives for event sponsorships 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.

Decisions and objectives for event sponsorships are often part of an organization's public relations activities.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Event Marketing  

93. (p. 557) 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. pull money. C.  push money. D. pricing promotions. E. promotional allowances.

Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are known as push money.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

94. (p. 557) 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

Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are also known as push money.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

95. (p. 557) An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators. This payment is known as:  A. a slotting fee. B. coop money. C.  a spiff. D. pull money. E. a trade allowance.

Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are also known as push money.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

96. (p. 557) Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:  A. pull money. B. a rebate. C.  a spiff. D. an off-invoice allowance. E. a slotting fee.

Manufacturers often devise incentives or contests for the sales personnel. These programs may involve cash payments made directly to the retailer's or wholesaler's sales staff to encourage them to promote and sell a manufacturer's product. These payments are known as push money or spiffs.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

97. (p. 557) 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.

Probably the most common trade promotion is some form of trade allowance, a discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or display the manufacturer's products.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

98. (p. 557) Ocean Spray offers its retail accounts a $3.00 per case discount on all of the cranberry juice they purchase 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 coop allowance.

Off-invoice allowance means a certain per-case amount or percentage is deducted from the invoice.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

99. (p. 557) Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called:  A. cooperative advertising. B. push monies. C. advertising subsidies. D.  promotional allowances. E. slotting allowances.

Manufacturers often give retailers allowances or discounts for performing certain promotional or merchandising activities in support of their brands. These are known as promotional allowances.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

100. (p. 558) 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. new product fees. E. trade discounts.

Slotting allowances, also called stocking allowances, introductory allowances, or street money, are fees retailers charge for providing a slot or position to accommodate the new product.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

101. (p. 558) Which of the following statements is true about the slotting allowances charged by many retailers?  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.

Retailers justify the slotting allowance by pointing out the costs associated with taking on so many new products each year, such as redesigning store shelves, entering the product into their computers, finding warehouse space, and briefing store employees on the new product.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

102. (p. 558) 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 allowances. C. push monies. D. slotting fees. E. street monies.

Some retailers have even been demanding failure fees if a new product does not hit a minimum sales level within a certain time.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

103. (p. 559) A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers.  A. slotting plan B.  planogram C. promotional layout D. retail format E. store layout

Many manufacturers help retailers use shelf space more efficiently through planograms, which are configurations of products that occupy a shelf section in a store.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

104. (p. 559) Nordica provides sales personnel in ski shops with training 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. a planogram. C.  sales training programs. D. event marketing. E. spiffs.

Manufacturers provide sales training assistance to retail salespeople in a number of ways. They may conduct classes or training sessions that retail personnel can attend to increase their knowledge of a product or a product line.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

105. (p. 560) _____ 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

One important promotional activity targeted to resellers is the trade show, a forum where manufacturers can display their products to current as well as prospective buyers.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

106. (p. 560) The five resorts in the Bahamas that combined their promotional budgets to sponsor an "It's better in the Bahamas'" ad campaign, is an example of:  A.  horizontal cooperative advertising. B. vertical cooperative advertising. C. integrated dyadic communications. D. ingredient-producer co-op advertising. E. a joint trade promotion.

Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

107. (p. 560) Intel and several different manufacturers of personal computers have joined to create and sponsor ads that promote both the computer and the microprocessor by sharing the cost of advertising. Intel and the PC manufacturers are using:  A.  cooperative advertising. B. forward promotion. C. dyadic communications. D. comparative advertising. E. diverting.

One form of trade-oriented promotion we examine is cooperative advertising, where the cost of advertising is shared by more than one party.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

108. (p. 560) _____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market.  A.  Horizontal cooperative advertising B. Vertical cooperative advertising C. Indirect advertising D. Ingredient-sponsored cooperative advertising E. Dyadic communication

Horizontal cooperative advertising is advertising sponsored in common by a group of retailers or other organizations providing products or services to the market.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

109. (p. 560) _____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials.  A. Vertical cooperative advertising B.  Ingredient-sponsored cooperative advertising C. Horizontal cooperative advertising D. Support advertising E. Integrated dyadic communications

Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers; its objective is to help establish end products that include the company's materials and/or ingredients.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

110. (p. 560; 561) The "Visa on the Label" program under which Visa provides uniform and linen manufacturers with advertising monies based on the number of yards of Visa fabric they buy from the company is an example of:  A. vertical cooperative advertising. B.  ingredient-sponsored cooperative advertising. C. horizontal cooperative advertising. D. a rebate cooperative advertising. E. a sales training program.

Ingredient-sponsored cooperative advertising is supported by raw materials manufacturers; its objective is to help establish end products that include the company's materials and/or ingredients.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

111. (p. 561) When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising.  A. horizontal cooperative B.  vertical cooperative C. dyadic D. ingredient-producer cooperative E. aggregated

The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

112. (p. 561) 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. joint trade promotions. E. reseller advertising.

The most common form of cooperative advertising is the trade-oriented form, vertical cooperative advertising, in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business. Manufacturers generally share the cost of advertising run by the retailer on a percentage basis upto a certain limit.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-03 To examine the types of consumer-and trade-oriented sales promotion tools and the factors to consider in using them. Topic: Types of Trade-Oriented Promotions  

113. (p. 562) When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect.  A. stimulus-response B. symbiotic C. hierarchical D.  synergistic E. dyadic

When properly planned and executed to work together, advertising and sales promotion can have a synergistic effect much greater than that of either promotional mix element alone.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-04 To understand how sales promotion is coordinated with advertising. Topic: Coordinating Sales Promotion With Advertising and Other IMC Tools  

114. (p. 563) Which of the following statements is true about the coordination of advertising and sales promotion efforts?  A. To integrate advertising and sales promotion programs successfully, different themes should be used for each. B. Consumers are less likely to redeem a coupon or respond to a price-off deal for a brand they are familiar with than one they know nothing about. C.  Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising. D. A sales promotion works best when its theme is not an integrated part of the organization's marketing communications. E. Media support for a sales promotion program should not be coordinated with the media program for the ad campaign.

Product trial created through sales promotion techniques such as sampling or high-value couponing is more likely to result in long-term use of the brand when accompanied by advertising.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-04 To understand how sales promotion is coordinated with advertising. Topic: Media Support and Timing  

115. (p. 565) 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. consumer really does not care about which brand is purchased. E. purchase is internally motivated and unaffected by an external incentive.

According to the attribution theory, consumers who consistently purchase a brand because of a coupon or price-off deal may attribute their behavior to the external promotional incentive rather than to a favorable attitude towards the brand.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-05 To consider potential problems and abuse by companies in their use of sales promotion. Topic: Sales Promotion Abuse  

116. (p. 565) Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami. Then United and other airlines immediately matched the offer, and it was believed for a long time that they all must continue the program or lose their competitive position. This situation is an example of:  A. a synergistic effect. B.  a sales promotional trap or spiral. C. a multilevel sales promotion. D. a trade-off allowance. E. the attribution theory in operation.

One potential problem with consumer-oriented promotions is that a sales promotion trap or spiral can result when several competitors use promotions extensively.

 

AACSB: Reflective Thinking Bloom's: Apply Difficulty: Hard Learning Objective: 16-05 To consider potential problems and abuse by companies in their use of sales promotion. Topic: Sales Promotion Abuse  

117. (p. 565) Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?  A. the use of celebrity spokespersons such as Shaquille O'Neill B. the addition of new items to the menus of fast food chains C.  the use of 99-cent specials to promote popular items such as Burger King's Whopper and McDonald's Big Mac D. the location of fast food restaurants in airports and on college campuses E. the promotional tying of fast food with movies

Fast-food chains have fallen into the sales promotion trap with promotions featuring popular menu items for 99 cents or one dollar.

 

AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 16-05 To consider potential problems and abuse by companies in their use of sales promotion. Topic: Sales Promotion Abuse  

118. (p. 566) In many areas of the country, supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:  A. a synergistic effect allowing for diversification and a push toward energy independence. B. devaluing what consumers think the manufacturers' products are worth. C. decreased brand equity. D.  reduced profit margins. E. the creative destruction theory in operation.

Marketers must be careful not to damage the brand franchise with sales promotions or to get the firm involved in a promotional war that erodes the brand's profit margins and threatens its long-term existence.

 

AACSB: Analytic Bloom's: Understand Difficulty: Medium Learning Objective: 16-05 To consider potential problems and abuse by companies in their use of sales promotion. Topic: Sales Promotion Abuse  

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