Mktg 430 Ch 16

B. Sales promotion

______ 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

E. Sales promotion

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

C. acceleration tool.

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.

A. consumers.

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

B. pull

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

E. Coupons

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

D. Trade shows

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

B. Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.

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.

A. Sales promotions are now considered an essential part of an organization’s branding strategies.

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.

A. Power shift in market place from manufactures to retailers

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

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.

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.

C. Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.

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.

D. that they save money.

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.

C. They are using more sales promotions that are tied to local events.

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.

E. The brand management system

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

C. sales promotions such as coupons and price discounts.

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.

C. Account-specific marketing

_____ 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

B. comarketing.

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

D. the use of price-oriented promotions to generate short-term sales.

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.

D. account-specific marketing.

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.

D. account-specific marketing.

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

D. The advertising clutter problem

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

B. break through the clutter

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

C. brand equity

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.

C. Brand equity

_____ 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

B. customer franchise.

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

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.

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.

B. franchise building promotions.

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.

A. Frequent flyer program of Lufthansa airways that gives the customer points on each travel that can be redeemed against various other purchases.

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’.

B. a franchise building promotion.

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.

B. a franchise building promotion.

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.

B. A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand.

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.

D. can be accomplished through consumer promotions that reinforce established brand images or positioning.

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.

C. Price-off deals

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

D. build a Van Kamp brand identity and image.

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.

B. nonfranchise-building promotion.

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.

D. trade promotions.

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.

B. obtain trial and repurchase.

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.

D. encourage repeat purchase.

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.

C. defend current customers.

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.

E. target a specific market segment.

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.

C. Sampling

_____ 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

B. Sampling

_____ 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

C. introduce a new flavor of sport drink to the marketplace

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.

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.

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.

E. Sampling generates much higher trial rates than advertising

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.

C. Door-to-door sampling

_____ 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

B. Sampling through the mail

_____ 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

A. cents-off coupons.

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.

D. allow a marketer to offer a price reduction to consumers who are price sensitive.

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.

A. It can be difficult to estimate how many consumers will use a coupon and when.

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.

B. Coupons are often used by consumers who are already loyal to the brand.

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. newspaper freestanding insert

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

A. Precise reach

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

B. bounce-back

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

B. Cross-ruff

_____ 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

C. instant

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

B. bounce-back

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

A. cross-ruff

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

B. cross-ruff

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

C. instant

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

A. It does not attract non-users of the particular brand.

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.

B. In-Store

_____ 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

D. In-store coupons

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

D. Checkout coupons

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

D. are cost-effective and can be targeted to specific categories of consumers.

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.

C. premium

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

C. free premium.

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.

A. free premium.

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.

B. self-liquidating

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

B. self-liquidating

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

A. The use of premiums is very popular among fast food restaurants as a way of attracting children.

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

A. Many of the premiums used by these companies have cross-promotional tie-ins with popular movies.

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.

A. detract from the consumer franchise building value of the promotion.

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.

B. ties into the overall positioning and communications campaign of the brand.

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.

C. A free sport bottle with the purchase of a four-pack of Gatorade

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

B. contest; sweepstakes

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

B. sweepstakes; contests

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

D. generate excitement and interest about the Arm & Hammer brand cat litters.

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.

B. can be used to generate excitement and involvement with a popular and timely event.

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.

C. Contests and sweepstakes

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

C. Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.

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.

C. more effort is required.

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.

C. bonus pack.

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.

B. provide marketers with a way to provide extra value to consumers without having them to do anything other than purchase the product.

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.

E. price-off deal.

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.

B. frequency program

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.

B. frequency program.

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.

A. Frequency programs support the goal of customer retention.

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.

D. event marketing.

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.

D. event marketing.

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.

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

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.

C. push money.

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.

A. spiffs

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

C. a spiff.

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.

C. a trade allowance.

A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote or display a manufacturer’s product is known as: A. cooperative advertising. B. merchandising support. C. a trade allowance. D. a spiff. E. push money.

C. an off-invoice allowance.

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.

D. promotional allowances.

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.

C. a spiff.

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.

A. slotting allowances

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.

A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.

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.

A. failure fees.

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.

B. planogram

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

C. sales training programs.

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.

D. A trade show

_____ 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

A. horizontal cooperative advertising.

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.

A. cooperative advertising.

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.

A. Horizontal cooperative advertising

_____ 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

B. Ingredient-sponsored cooperative advertising

_____ 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

B. vertical cooperative

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

B. ingredient-sponsored cooperative advertising.

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.

C. vertical cooperative advertising.

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.

D. synergistic

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

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.

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.

A. purchase behavior is attributed to an external incentive.

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.

B. a sales promotional trap or spiral.

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.

C. the use of 99-cent specials to promote popular items such as Burger King’s Whopper and McDonald’s Big Mac

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

D. reduced profit margins.

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.