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Integrated Advertising, Promotion and Marketing Communications, 5e (Clow)
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Integrated Advertising, Promotion and Marketing Communications, 5e (Clow) Chapter 12 Sales Promotions
Transcript
Integrated Advertising, Promotion and Marketing Communications, 5e (Clow)
Chapter 12 Sales Promotions
1) Trade promotions are used by manufacturers and other members of the marketing channel to help push products through to retailers.
Answer: TRUE
Diff: 1 Page Ref: 312
Question Tag: Definition (Concept)
Objective: 12-1
2) A coupon is a price reduction offer to a consumer.
Answer: TRUE
Diff: 1 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
3) The majority of coupons are issued by retailers.
Answer: FALSE
Diff: 2 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
4) The majority of coupons are sent out through print media.
Answer: TRUE
Diff: 1 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
5) FSI stands for Full Standing Inventory, which means the ad campaign is complete.
Answer: FALSE
Diff: 1 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
6) FSI, or Free Standing Inserts, are the most common method used to deliver coupons to consumers.
Answer: TRUE
Diff: 2 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
7) An instant redemption coupon is sent out through print media.
Answer: FALSE
Diff: 2 Page Ref: 314
Question Tag: Critical Thinking
Objective: 12-2
8) An instant redemption coupon may lead to a trial purchase because the customer has immediate access to the discount.
Answer: TRUE
Diff: 2 Page Ref: 314
Question Tag: Critical Thinking
Objective: 12-2
9) A bounce-back coupon is placed inside a package so it cannot be redeemed immediately.
Answer: TRUE
Diff: 2 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
10) Bounce-back coupons tend to encourage trial purchases of products.
Answer: FALSE
Diff: 3 Page Ref: 314
Question Tag: Critical Thinking
Objective: 12-2
11) A scanner-delivered coupon is sent out by the Internet.
Answer: FALSE
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
12) A scanner-delivered coupon is often given for a competing brand to encourage brand-switching.
Answer: TRUE
Diff: 2 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
13) Placing a coupon for French Onion dip on a bag of potato chips is called a bounce-back coupon approach.
Answer: FALSE
Diff: 3 Page Ref: 314
Question Tag: Application
Objective: 12-2
14) A cross-ruffing coupon is placing a coupon for one product on another product.
Answer: TRUE
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
15) A coupon for peanut butter on a jar of jelly is a cross-ruff coupon.
Answer: TRUE
Diff: 3 Page Ref: 314
Question Tag: Application
Objective: 12-2
16) Customers who already have a preference for a brand redeem the majority of all coupons.
Answer: TRUE
Diff: 3 Page Ref: 315
Question Tag: Critical Thinking
Objective: 12-2
17) Premiums are prizes or gifts consumers receive when purchasing products.
Answer: TRUE
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
18) When a company offers a premium, consumers pay full price for the good or service.
Answer: TRUE
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
19) Free-in-the-mail premiums are gifts individuals receive for purchasing products by providing some form of proof of purchase.
Answer: TRUE
Diff: 2 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
20) A free toy placed inside a package of cereal is an example of an in- or on-package premium.
Answer: TRUE
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
21) A sporting goods store offering a free golf bag with the purchase of three or more golf clubs is an example of a self-liquidating premium.
Answer: FALSE
Diff: 2 Page Ref: 315
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
22) A self-liquidating premium is one in which the consumer pays some money for the gift or item.
Answer: TRUE
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
23) Building a successful premium requires matching the premium to the target market.
Answer: TRUE
Diff: 2 Page Ref: 316
Question Tag: Definition (Concept)
Objective: 12-2
24) Some marketing experts believe overuse of premiums can damage a brand's image, while the use of coupons can actually enhance a brand's image.
Answer: FALSE
Diff: 2 Page Ref: 316
Question Tag: Definition (Concept)
Objective: 12-2
25) Premiums are normally much more successful than coupons in increasing sales and profits.
Answer: FALSE
Diff: 3 Page Ref: 316
Question Tag: Critical Thinking
Objective: 12-2
26) The consumer is typically required to make a purchase when entering a sweepstakes.
Answer: FALSE
Diff: 1 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
27) A contest requires the use of a skill while a sweepstakes relies on random chance.
Answer: TRUE
Diff: 2 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
28) In a contest or sweepstakes, extrinsic value is determined by the value of the prize to the consumer.
Answer: TRUE
Diff: 2 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
29) In a contest or sweepstakes, an intrinsic value is the challenge or fun in playing the game or in participating.
Answer: TRUE
Diff: 2 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
30) A major advantage of using the Internet for a contest is that individuals can participate in the contest for its intrinsic value.
Answer: TRUE
Diff: 3 Page Ref: 318
Question Tag: Critical Thinking
Objective: 12-2
31) To encourage consumers to continue playing a contest, the intrinsic value of prizes can be steadily increased by allowing small, incremental rewards.
Answer: FALSE
Diff: 2 Page Ref: 318
Question Tag: Critical Thinking
Objective: 12-2
32) The primary goals of contests and sweepstakes are to encourage customer traffic and boost brand switching behavior.
Answer: FALSE
Diff: 3 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
33) Refunds and rebates are cash returns offered to consumers or businesses following the purchase of a product.
Answer: TRUE
Diff: 1 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
34) Technically, refunds are paid on soft goods; rebates are paid on hard goods.
Answer: TRUE
Diff: 1 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
35) Refunds and rebates suffer the disadvantages of costs, paperwork, and diminished effectiveness.
Answer: TRUE
Diff: 2 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
36) Rebate programs tend to be more effective than other promotions because consumers get excited about them and this leads them to wait patiently until one is offered before making a purchase.
Answer: FALSE
Diff: 3 Page Ref: 319
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
37) For products that have used rebates consistently, such as automobiles, many consumers will no longer purchase the product unless a rebate is offered.
Answer: TRUE
Diff: 2 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
38) For some products, such as automobiles, increasing the amount of a rebate no longer seems to spur additional sales activity, but discontinuing or reducing the rebate level tends to have an immediate negative impact on sales.
Answer: TRUE
Diff: 2 Page Ref: 319
Question Tag: Critical Thinking
Objective: 12-2
39) In-store sampling is a program in which samples are given directly to consumers in a retail store.
Answer: TRUE
Diff: 1 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
40) Direct sampling is a program in which samples are given directly to consumers in a retail store.
Answer: FALSE
Diff: 1 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
41) Putting a sample of a dryer sheet in a box of laundry detergent is a form of response sampling.
Answer: FALSE
Diff: 2 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
42) Instant redemption coupons are a form of direct sampling.
Answer: FALSE
Diff: 3 Page Ref: 319
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
43) Shania received a sample of a new tea drink when she attended a football game in Miami. This is an example of selective sampling.
Answer: TRUE
Diff: 3 Page Ref: 320
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
44) In recent years, marketers have increased the use of free standing inserts (FSI) for the distribution of samples.
Answer: TRUE
Diff: 2 Page Ref: 320
Question Tag: Definition (Concept)
Objective: 12-2
45) It is not possible to offer sampling programs over the Internet.
Answer: FALSE
Diff: 3 Page Ref: 320
Question Tag: Critical Thinking
Objective: 12-2
46) A major disadvantage of sampling is the cost, both of producing the sample and for distributing the sample.
Answer: TRUE
Diff: 3 Page Ref: 320
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
47) When one or more extra items are place in a special product package, it is called a bonus pack.
Answer: TRUE
Diff: 1 Page Ref: 320
Question Tag: Definition (Concept)
Objective: 12-2
48) A bonus pack works best for current customers.
Answer: TRUE
Diff: 2 Page Ref: 321
Question Tag: Definition (Concept)
Objective: 12-2
49) Bonus packs can lead to brand switching if the consumer has used the brand previously.
Answer: TRUE
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
50) For ongoing products in highly competitive markets, a bonus pack is an effective method of maintaining brand loyalty and reducing brand switching at a minimal cost.
Answer: TRUE
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
Objective: 12-3
51) Price-offs are excellent at stimulating sales of an existing product.
Answer: TRUE
Diff: 2 Page Ref: 321
Question Tag: Definition (Concept)
Objective: 12-2
52) Price-offs can encourage customers to switch brands in brand parity situations or when the consumer has a high level of brand loyalty to another brand.
Answer: FALSE
Diff: 2 Page Ref: 322
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
53) A consumer who purchases additional product because of a price-off tends to either consume more or delay a future purchase of the product.
Answer: TRUE
Diff: 3 Page Ref: 322
Question Tag: Critical Thinking
Objective: 12-2
54) To be successful, a price-off should feature a monetary appeal to consumers and provide consumers with an immediate reward.
Answer: TRUE
Diff: 2 Page Ref: 322
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
55) An overlay combines two or more consumer promotional activities into a single campaign.
Answer: TRUE
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
56) Intracompany tie-ins are the promotion of two different products from different companies using one consumer promotion.
Answer: FALSE
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
57) Intercompany tie-ins are the promotion of two different products from the same company using one consumer promotion.
Answer: FALSE
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
58) Price-sensitive consumers regularly respond to consumer promotions, such as coupons, price-off deals, and premiums.
Answer: FALSE
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
59) Brand-loyal consumers purchase only one particular brand and do not respond to consumer promotions unless it is for their particular brand.
Answer: TRUE
Diff: 2 Page Ref: 323
Question Tag: Definition (Concept)
Objective: 12-3
60) For brand-loyal consumers, consumer promotions can be crafted to both boost sales and reinforce the firm's image.
Answer: TRUE
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
61) A retailer will support a manufacturer's consumer promotion program if the program will increase traffic into the retail store, boost store sales, attract new customers, or increase the basket size of shoppers in the store.
Answer: TRUE
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
Objective: 12-3
62) Promotion-prone and price-sensitive consumers are not highly attractive to pursue with consumer promotions.
Answer: TRUE
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
63) A trade promotion is a physical product sent as part of a promotional deal.
Answer: FALSE
Diff: 1 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
64) Manufacturers spend more on trade promotions than on either consumer promotions or advertising.
Answer: TRUE
Diff: 3 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
65) Consumer promotions are for end-users and customers while trade promotions are for channel members.
Answer: TRUE
Diff: 1 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
66) A trade allowance is a financial incentive offer made to other channel members to motivate them to make a purchase.
Answer: TRUE
Diff: 1 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
67) An off-invoice allowance is money paid to a retailer who is willing to bypass wholesalers.
Answer: FALSE
Diff: 2 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
68) More money is spent on off-invoice allowances than any other form of trade promotion.
Answer: TRUE
Diff: 2 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
69) Examples of trade allowances include slotting fees, exist fees, off-invoice allowances, and co-op advertising.
Answer: FALSE
Diff: 3 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
70) The most controversial form of trade allowance is the off-invoice allowance.
Answer: FALSE
Diff: 3 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
71) Slotting fees are funds charged by retailers to stock new products.
Answer: TRUE
Diff: 1 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
72) Almost all major retailers charge slotting fees.
Answer: TRUE
Diff: 3 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
73) One reason retailers use slotting fees is that retailers must spend money to add new products to inventories and to stock new merchandise.
Answer: TRUE
Diff: 2 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
74) Since the majority of new products fail, retailers believe charging a slotting fee forces manufacturers to weed out poor product introductions.
Answer: TRUE
Diff: 2 Page Ref: 325
Question Tag: Critical Thinking
Objective: 12-4
75) Slotting fees are considered almost like extortion by manufacturers, but they have no choice but to pay the fees if they want their products put on retail shelves.
Answer: TRUE
Diff: 2 Page Ref: 325
Question Tag: Critical Thinking
Objective: 12-4
76) Unsuccessful products that do not sell and are taken off the market may be charged with exit fees.
Answer: TRUE
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
77) Exit fees are funds charged by retailers to stock new products.
Answer: FALSE
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
78) Only a small number of retailers charge exit fees compared to the large percentage that use slotting fees.
Answer: TRUE
Diff: 3 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
79) One of the disadvantages of trade allowances is that almost half of the time the retailers do not pass along the allowance to consumers.
Answer: TRUE
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
Objective: 12-4
80) Forward-buying is purchasing extra inventory while it is on-deal so it can be sold later when it is off-deal.
Answer: TRUE
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
81) A company that uses forward-buying is normally trying to reduce inventories at less successful stores.
Answer: FALSE
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
82) Diversion is purchasing extra inventory while it is on-deal and shipping it to other locations where it is off-deal.
Answer: TRUE
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
83) A diversion is a form of exit fee where funds are transferred from failing products to successful products.
Answer: FALSE
Diff: 3 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
84) Retailers tend to use forward buying less than diversion due to the carrying costs associated with forward buying.
Answer: FALSE
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
Objective: 12-4
85) Trade contests encourage sales by making rewards and prizes available to brokers, salespeople in retail stores, wholesalers, and agents.
Answer: TRUE
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
86) Rewards given as part of a trade contest is also known as spiff money.
Answer: TRUE
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
87) Spiff money refers to cash, not prizes, paid to consumers in sales contests.
Answer: FALSE
Diff: 3 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
88) A trade incentive involves the retailer performing a function in order to receive an allowance.
Answer: TRUE
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
89) A cooperative merchandising agreement is a formal agreement between the retailer and the manufacturer to undertake a two-way marketing effort.
Answer: TRUE
Diff: 1 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
90) Cooperative merchandising agreements can be formed between two manufacturers seeking to jointly advertise products.
Answer: FALSE
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
91) Cooperative merchandising agreements are popular with manufacturers because the retailer performs a marketing function in order to receive the allowance or incentive.
Answer: TRUE
Diff: 3 Page Ref: 327
Question Tag: Critical Thinking
Objective: 12-4
92) The primary benefit of trade allowances to retailers is that it allows retailers to develop calendar promotions.
Answer: FALSE
Diff: 3 Page Ref: 327
Question Tag: Critical Thinking
Objective: 12-4
93) A calendar promotion allows a retailer to set a schedule among competing brands of a product so that the retailer can feature one of the brands on-sale almost all of the time.
Answer: TRUE
Diff: 1 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
94) Offering Coke on sale one week, Pepsi the next week, and 7UP the following week can be planned out using a calendar promotion program.
Answer: TRUE
Diff: 2 Page Ref: 327
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
95) A premium or bonus pack offers retailers more merchandise to make a purchase rather than a price discount.
Answer: TRUE
Diff: 2 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
96) Cooperative advertising takes place when the consumer pays part of the advertising cost.
Answer: FALSE
Diff: 1 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
97) In almost all cases, for a retailer to receive co-op advertising dollars from a manufacturer, there cannot be a competing brand in the advertisement.
Answer: TRUE
Diff: 2 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
98) In most cooperative advertising programs, retailers accrue co-op advertising monies based on purchases of the product from the manufacturer.
Answer: TRUE
Diff: 2 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
99) Co-op advertising programs allow retailers to use the manufacturers dollars to expand advertising programs.
Answer: TRUE
Diff: 3 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
100) From a manufacturer's perspective, co-op advertising is beneficial since the payments are almost always tied to sales.
Answer: TRUE
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
Objective: 12-4
101) From a manufacturer's perspective, a trade show offers the potential to meet customers and sell products.
Answer: TRUE
Diff: 1 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
102) From a retailer's perspective, a trade show allows buyers to compare merchandise and to make contacts with several prospective vendors.
Answer: TRUE
Diff: 1 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
103) At trade shows, manufacturer's representatives should concentrate efforts on attendees who are education seekers, not on attendees who are solution seekers.
Answer: FALSE
Diff: 3 Page Ref: 329
Question Tag: Critical Thinking
Objective: 12-4
104) In the United States, few deals are finalized during trade shows. Instead, exhibitors collect business cards and follow up later after the show is over.
Answer: TRUE
Diff: 2 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
105) A trade show participant from another country is more likely to be ready to make a buy than a domestic attendee.
Answer: TRUE
Diff: 2 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
106) Many large national and international trade shows are losing customers to niche shows.
Answer: TRUE
Diff: 2 Page Ref: 330
Question Tag: Definition (Concept)
Objective: 12-4
107) A major concern in using trade promotions is that merchandise will not move unless a trade promotion is offered. For example, in the grocery industry, the majority of manufacturers offer some type of trade promotion to get retailers to make purchases.
Answer: TRUE
Diff: 3 Page Ref: 330
Question Tag: Critical Thinking
Objective: 12-5
108) If manufacturers try to quit or cut back on trade promotions, retailers often replace the manufacturer's brand with other brands or trim shelf space to allow more room for brands that are offering better deals.
Answer: TRUE
Diff: 3 Page Ref: 330
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-5
109) Retailers tend to stock brands with strong images even if the manufacturer offers fewer trade deals.
Answer: TRUE
Diff: 3 Page Ref: 330
Question Tag: Critical Thinking
Objective: 12-5
110) One of the primary goals of a consumer promotion is to:
A) build brand equity
B) entice the customer to take the final step and make a purchase
C) enhance brand parity
D) entice the customer to try the product
Answer: B
Diff: 2 Page Ref: 312
Question Tag: Definition (Concept)
Objective: 12-2
111) When a manufacturer offers a special promotion to other companies for their use and not for resale, it is a:
A) consumer promotion
B) bonus program
C) trade promotion
D) brand awareness program
Answer: A
Diff: 3 Page Ref: 312
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-1
112) The majority of all coupons are offered by:
A) manufacturers
B) wholesalers
C) retailers
D) Internet companies
Answer: A
Diff: 2 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
113) The majority of all coupons are offered:
A) in, on, or near store shelves
B) in, on, or near packages
C) through print media
D) via broadcast media
Answer: C
Diff: 2 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
114) The primary vehicle for distributing print coupons and coupons in general is:
A) magazines
B) newspapers
C) direct mail
D) free standing inserts (FSI)
Answer: D
Diff: 2 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
115) Free Standing Inserts (FSI) are found primarily in:
A) magazines
B) newspapers
C) shopping malls
D) catalogs
Answer: B
Diff: 1 Page Ref: 313
Question Tag: Definition (Concept)
Objective: 12-2
116) The following statements concerning free standing inserts (FSI) and print media distributed coupons are true, except:
A) consumers must make a conscious effort to clip or save the coupon
B) coupons create brand awareness
C) coupons enhance brand equity
D) using FSI and print media encourages consumers to purchase the brand on their next trip to the store, thus increasing brand name recall
Answer: C
Diff: 3 Page Ref: 314
Question Tag: Critical Thinking
Objective: 12-2
117) A coupon placed on a package to be used during the purchase is called a(n):
A) free-standing coupon
B) bounce-back coupon
C) instant-redemption coupon
D) rebate coupon
Answer: C
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
118) An instant-redemption coupon is:
A) delivered electronically over the Internet
B) delivered electronically at the cash register
C) placed inside the package to be used later
D) placed on a package to be used during the purchase
Answer: D
Diff: 2 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
119) Vanish has a $1.00-off coupon attached to the container that can be easily removed. This is an example of a(n):
A) instant-redemption coupon
B) bounce-back coupon
C) cross-ruffing coupon
D) response-offer coupon
Answer: A
Diff: 3 Page Ref: 314
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
120) A coupon placed inside a package to be used for a later purchase is called a(n):
A) free-standing coupon
B) bounce-back coupon
C) instant-redemption coupon
D) rebate coupon
Answer: B
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
121) A bounce-back coupon is:
A) not immediately redeemable
B) not normally distributed by a manufacturer
C) a form of premium
D) used at the time the product is purchased
Answer: A
Diff: 2 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
122) Bounce-back coupons are used to encourage:
A) brand switching
B) repeat purchases
C) trial purchases
D) brand loyalty
Answer: B
Diff: 3 Page Ref: 314
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
123) A $1.00 coupon is placed inside a box of Quaker Oats. This is an example of a(n):
A) instant-redemption coupon
B) bounce-back coupon
C) cross-ruffing coupon
D) response offer coupon
Answer: B
Diff: 3 Page Ref: 314
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
124) When a cash register triggers a coupon for a product, it is called a:
A) bounce-back coupon
B) scanner-delivered coupon
C) cross-ruffing coupon
D) response offer coupon
Answer: B
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
125) The best type of coupon to encourage brand switching is a:
A) cross-ruff
B) bounce-back
C) scanner-delivered
D) free standing insert (FSI)
Answer: C
Diff: 3 Page Ref: 314
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
126) Scanner-delivered coupons are used to encourage:
A) brand switching
B) repeat purchases
C) trial purchases
D) brand loyalty
Answer: A
Diff: 3 Page Ref: 314
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
127) A coupon placed on a package for a different product is a(n):
A) cross-ruffing coupon
B) scanner-delivered coupon
C) response-offer coupon
D) instant-redemption coupon
Answer: A
Diff: 1 Page Ref: 314
Question Tag: Definition (Concept)
Objective: 12-2
128) A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon?
A) cross-ruffing
B) scanner-delivered
C) response-offer
D) instant-redemption
Answer: A
Diff: 2 Page Ref: 314
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
129) A coupon for $3.00 off on a package of six golf balls placed on a golf club cover is a:
A) response offer coupon
B) cross-ruffing coupon
C) premium
D) bonus offer
Answer: B
Diff: 2 Page Ref: 314
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
130) Prizes or gifts that consumers receive when purchasing products are called:
A) add-ins
B) premiums
C) purchase incentives
D) giveaways
Answer: B
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
131) With a premium, customers:
A) receive a discount on the purchase price
B) receive a gift or prize for making a purchase
C) have an opportunity to win prizes or cash
D) purchase multiple items for a reduced price
Answer: B
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
132) Some marketing experts believe that the overuse of coupons can damage a brand's image, while the use of which of the following can actually enhance a brand's image?
A) contests and sweepstakes
B) bonus packs
C) sampling
D) premiums
Answer: D
Diff: 3 Page Ref: 316
Question Tag: Critical Thinking
Objective: 12-2
133) The following are types of premiums, except:
A) free-in-the mail
B) in- or on-package
C) instant-redemption
D) self-liquidating
Answer: C
Diff: 2 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
134) A gift sent by mail to a customer, based on a proof-of-purchase receipt, is which type of premium?
A) free-in-the-mail
B) self-liquidating
C) bounce-back
D) instant-redemption
Answer: A
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
135) A small gift being placed inside of a package is a(n):
A) in-package premium
B) retail premium
C) store premium
D) self-liquidating premium
Answer: A
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
136) A toy placed inside a box of cereal is an example of a(n):
A) bonus pack
B) in-package premium
C) store premium
D) self-liquidating premium
Answer: B
Diff: 1 Page Ref: 315
Question Tag: Application
Objective: 12-2
137) A gift given by the retail store when the customer purchases a product is a(n):
A) bonus pack
B) in-package premium
C) store or manufacturer premium
D) self-liquidating premium
Answer: C
Diff: 1 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
138) A Star Wars action figure given when a customer buys a Whopper meal at Burger King would be a(n):
A) bounce-back premium
B) in- or on-package premium
C) store or manufacturer premium
D) self-liquidating premium
Answer: C
Diff: 3 Page Ref: 315
Question Tag: Application
Objective: 12-2
139) A new PDA given as a gift for test driving a car is an example of a(n):
A) free-in-the-mail premium
B) store or manufacturer premium
C) self-liquidating premium
D) in- or on-package premium
Answer: B
Diff: 3 Page Ref: 315
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
140) Consumers must pay a small amount of money for a(n):
A) in- or on-package premium
B) cross-ruffing premium
C) store premium
D) self-liquidating premium
Answer: D
Diff: 2 Page Ref: 315
Question Tag: Definition (Concept)
Objective: 12-2
141) The following statements about premiums are true, except:
A) premiums of higher quality lead to better response rates
B) premiums should add value to a product
C) premiums should reinforce the brand's image
D) premiums should build short-term profits
Answer: D
Diff: 3 Page Ref: 316
Question Tag: Critical Thinking
Objective: 12-2
142) Each of the following are important keys to building a successful premium program, except:
A) match the premium to the target market
B) select premiums that are highly popular and current fads
C) select premiums that reinforce the firm's product and image
D) integrate the premium with other IMC tools
Answer: B
Diff: 2 Page Ref: 316
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
143) The sales promotion that may require the participant to perform some type of activity in order to be eligible to win prizes is a:
A) contest
B) sweepstakes
C) premium
D) price-off program
Answer: A
Diff: 1 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
144) In which of the following promotions will participants register to win a prize without making a purchase?
A) contest
B) sweepstakes
C) premium
D) price-off program
Answer: B
Diff: 1 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
145) In which of the following may participants win a prize without performing any type of activity?
A) contest
B) sweepstakes
C) premium
D) price-off program
Answer: B
Diff: 1 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
146) A "write our new slogan" event that awards a prize to the winning slogan is a(n):
A) contest
B) sweepstakes
C) premium
D) illegal activity
Answer: A
Diff: 2 Page Ref: 317
Question Tag: Critical Thinking
Objective: 12-2
147) Each of the following statements about sweepstakes are true, except:
A) odds of winning must be published
B) intrinsic value is more difficult to accomplish with a sweepstakes
C) requires a purchase to enter
D) extrinsic value of the prizes impacts how many people will enter the contest
Answer: C
Diff: 3 Page Ref: 317
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
148) The actual attractiveness of prizes in a contest is its:
A) intrinsic value
B) extrinsic value
C) redemption rates
D) Internet inquiries
Answer: B
Diff: 1 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
149) For most people, a free trip to Hawaii is an example of a prize with high:
A) intrinsic value
B) extrinsic value
C) redemption rates
D) Internet inquiries
Answer: B
Diff: 2 Page Ref: 317
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
150) The enjoyment of playing or participating in a contest is called:
A) intrinsic value
B) extrinsic value
C) redemption value
D) historic value
Answer: A
Diff: 2 Page Ref: 317
Question Tag: Definition (Concept)
Objective: 12-2
151) A major reason for Hip Cricket's success in using cell phone instant messaging for a Miller Brewing Company Icehouse brand contest was:
A) the value of the prizes won
B) notification of winning instantly
C) the intrinsic value of the contest
D) the demographic target market of the contest
Answer: B
Diff: 3 Page Ref: 318
Question Tag: Critical Thinking
Objective: 12-2
152) Using the Internet for contests or sweepstakes has the following advantages over traditional contest methods, except:
A) provide a higher level of intrinsic value
B) provide ability to create interactive games
C) provide a higher level of extrinsic rewards
D) provide promoters with data-capturing capabilities
Answer: C
Diff: 3 Page Ref: 318
Question Tag: Critical Thinking
Objective: 12-2
153) The two primary goals of contests and sweepstakes are to:
A) build brand equity and boost sales
B) boost sales and profits
C) overcome advertising clutter and increase inquiries
D) encourage customer traffic and boost sales
Answer: D
Diff: 3 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
154) Cash returns on soft goods, such as food or clothing, are called:
A) refunds
B) rebates
C) bill-back programs
D) premiums
Answer: A
Diff: 1 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
155) Cash returns on hard goods, such as appliances and electronics, are called:
A) refunds
B) rebates
C) bounce-back coupons
D) premiums
Answer: B
Diff: 1 Page Ref: 318
Question Tag: Definition (Concept)
Objective: 12-2
156) Andy will not purchase a computer unless the manufacturer offers a rebate. This is an example of which of the following problems associated with refund and rebate programs?
A) fraud and misredemption
B) costs
C) paperwork to process the refund or rebate
D) diminished effectiveness
Answer: D
Diff: 3 Page Ref: 319
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
157) To be effective, rebates and refunds must have the impact on buyers' behaviors by:
A) making them more brand loyal
B) generating positive word-of-mouth communications
C) either leading to a more immediate purchase or by causing buyers to change brands
D) stimulating a trial purchase
Answer: C
Diff: 2 Page Ref: 319
Question Tag: Critical Thinking
Objective: 12-2
158) The delivery of a product to consumers for their use or consumption for free is a:
A) coupon program
B) premium
C) bonus pack
D) sampling program
Answer: D
Diff: 1 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
159) When time-share properties offer to let you stay for a night or weekend on the condition you listen to a sales pitch, they are using which consumer promotion technique?
A) sampling
B) a premium
C) price-off
D) coupon
Answer: A
Diff: 2 Page Ref: 319
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
160) Of the following consumer promotions, the best for encouraging consumers to try a new product is:
A) coupons
B) sampling
C) premiums
D) contests or sweepstakes
Answer: B
Diff: 3 Page Ref: 319
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
161) Cooking food in a grocery store and giving small pieces of the food to consumers who pass by is which form of sampling?
A) in-store distribution
B) direct
C) response
D) cross-ruffing
Answer: A
Diff: 1 Page Ref: 319
Question Tag: Application
Objective: 12-2
162) When samples are mailed or delivered door-to-door, which form of sampling is being used?
A) in-store distribution
B) direct
C) bonus pack
D) cross ruffing
Answer: B
Diff: 2 Page Ref: 319
Question Tag: Definition (Concept)
Objective: 12-2
163) Placing a sample bar of soap in every mail box within a 10-block area is an example of:
A) direct sampling
B) cross-ruff sampling
C) selective sampling
D) response sampling
Answer: A
Diff: 2 Page Ref: 319
Question Tag: Application
Objective: 12-2
164) Providing a small sample of laundry detergent with the purchase of dryer sheets is called:
A) direct sampling
B) response sampling
C) cross-ruff sampling
D) media sampling
Answer: C
Diff: 3 Page Ref: 319
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
165) A small perfume sample placed in a magazine is a:
A) direct sampling program
B) response sampling program
C) media sampling program
D) selective sample program
Answer: C
Diff: 2 Page Ref: 319
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
166) A pharmaceutical company giving free samples of medicine to a physician is:
A) unethical influence
B) professional sampling
C) selective sampling
D) media sampling
Answer: B
Diff: 2 Page Ref: 320
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-2
167) Giving out samples at a site such as a state fair, parade, or sporting event is:
A) direct sampling
B) response sampling
C) cross-ruff sampling
D) selective sampling
Answer: D
Diff: 3 Page Ref: 320
Question Tag: Application
Objective: 12-2
168) In recent years, marketers have increased the use of which medium for distributing samples?
A) broadcast media
B) free standing inserts (FSI)
C) magazines
D) direct mail
Answer: B
Diff: 3 Page Ref: 320
Question Tag: Definition (Concept)
Objective: 12-2
169) The primary advantage of Internet sampling to the firm providing the sample is that:
A) it is cheaper than the other methods of distribution
B) more expensive samples can be provided
C) only individuals who request the sample will receive it
D) the target market of the sample tends to have a higher educational level and higher income
Answer: C
Diff: 3 Page Ref: 320
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
170) The primary disadvantage of sampling is:
A) inability to target the sample effectively
B) diminished effectiveness
C) lack of visibility
D) cost of producing and distributing the sample
Answer: D
Diff: 2 Page Ref: 320
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
171) The key to a successful sampling program is:
A) targeting the right audience
B) reducing the costs of distribution
C) gaining visibility prior to the sampling program
D) the cooperation of retailers and other channel members
Answer: A
Diff: 3 Page Ref: 320
Question Tag: Critical Thinking
Objective: 12-2
172) Adding an extra bar of soap to a three pack and offering it at a special price is called a:
A) rebate pack
B) prize package
C) bonus pack
D) selective sample
Answer: C
Diff: 1 Page Ref: 320
Question Tag: Application
Objective: 12-2
173) If Colgate packages two tubes of toothpaste together to sell at a special price, it is an example of a:
A) cross-ruffing premium
B) rebate
C) bonus pack
D) self-liquidating premium
Answer: C
Diff: 2 Page Ref: 321
Question Tag: Application
Objective: 12-2
174) Each of the following are reasons to offer a bonus pack, except:
A) increase usage of the product
B) stimulate trial purchase
C) match or preempt competitive actions
D) stockpile the product
Answer: B
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
Objective: 12-2
175) The following are reasons to use a bonus pack, except:
A) develop customer loyalty
B) attract new users
C) enhance brand parity
D) encourage brand switching
Answer: C
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
Objective: 12-2
176) Each of the following statements about bonus packs is true, except:
A) bonus packs appeal to price-sensitive consumers
B) bonus packs rarely attract new customers
C) bonus packs can lead to brand switching
D) bonus packs can preempt the competition
Answer: A
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
177) Bonus packs can lead to brand switching if the consumer:
A) is price-sensitive
B) is promotion-sensitive
C) believes the bonus exceeds 30 percent
D) has purchased the brand previously
Answer: D
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
Objective: 12-2
178) One method of maintaining brand loyalty and reducing brand switching at a minimal cost is:
A) coupons
B) bonus packs
C) contests and sweepstakes
D) sampling
Answer: B
Diff: 3 Page Ref: 321
Question Tag: Critical Thinking
Objective: 12-2
179) A temporary price reduction that is marked on the product's package is a:
A) bonus offer
B) price-off
C) premium
D) bad idea, because the retailer may not honor the price
Answer: B
Diff: 1 Page Ref: 321
Question Tag: Definition (Concept)
Objective: 12-2
180) Folks Southern Kitchen advertises in the local newspaper a special $7.99 lunch special at any of its outlets during March. This promotion is an example of a:
A) coupon
B) sampling
C) premium
D) price-off
Answer: D
Diff: 3 Page Ref: 321
Question Tag: Application
Objective: 12-2
181) A price-off program:
A) is effective for individuals that have a high degree of brand loyalty to a competing brand
B) has little impact on sales
C) usually boosts sales, but it can hurt profits
D) decreases price sensitivity over time
Answer: C
Diff: 3 Page Ref: 322
Question Tag: Critical Thinking
Objective: 12-2
182) Two or more consumer promotional activities combined into a single campaign is a(n):
A) intercompany tie-in
B) intracompany tie-in
C) overlay
D) premium
Answer: C
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
183) Fisher Boy has both a 55 cents-off coupon and an entry form for a sweepstakes in an advertisement. This is an example of a(n):
A) intercompany tie-in
B) intracompany tie-in
C) overlay
D) bonus pack
Answer: C
Diff: 3 Page Ref: 322
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-2
184) When two products from the same company are promoted together, using one consumer promotion, it is called:
A) an intracompany tie-in
B) an intercompany tie-in
C) an overlay
D) a premium
Answer: A
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
185) When two products from different companies are promoted together, using one consumer promotion, it is called:
A) an intracompany tie-in
B) an intercompany tie-in
C) an overlay
D) a premium
Answer: B
Diff: 2 Page Ref: 322
Question Tag: Definition (Concept)
Objective: 12-2
186) Tyson and General Foods developed a joint consumer promotion. This would be an example of a(n):
A) intracompany tie-in
B) intercompany tie-in
C) overlay
D) premium
Answer: B
Diff: 2 Page Ref: 322
Question Tag: Application
Objective: 12-2
187) The type of consumer that responds best to coupons and premiums is:
A) promotion-prone consumers
B) brand-loyal consumers
C) brand-image consumers
D) price-sensitive consumers
Answer: A
Diff: 2 Page Ref: 323
Question Tag: Definition (Concept)
Objective: 12-3
188) A consumer who only purchases his or her favorite brand is called:
A) promotion-prone
B) brand-loyal
C) brand responsive
D) price-sensitive
Answer: B
Diff: 2 Page Ref: 323
Question Tag: Definition (Concept)
Objective: 12-3
189) In terms of planning promotions, consumers can be divided into the following categories, except:
A) promotion prone
B) brand loyal
C) price sensitive
D) repeat purchasers
Answer: D
Diff: 2 Page Ref: 323
Question Tag: Definition (Concept)
Objective: 12-3
190) A consumer who makes the purchase decision based on price is called:
A) promotion-prone
B) brand-loyal
C) repeat buyer
D) price-sensitive
Answer: D
Diff: 1 Page Ref: 323
Question Tag: Definition (Concept)
Objective: 12-3
191) Britney likes to use coupons and tends to purchase whichever brand of food has the best coupon offer. Britney would be classified as which type of consumer?
A) promotion prone
B) brand loyal
C) price sensitive
D) shopper prone
Answer: A
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
192) Trey likes to drink Pepsi and will use a consumer promotion, such as a coupon or premium, only if it is for Pepsi. Trey would be classified as which type of consumer?
A) promotion prone
B) brand loyal
C) price sensitive
D) shopper prone
Answer: B
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
193) Oscar is on a tight budget so he uses the consumer promotions that will give him the best price for products he buys. Oscar would be classified as which type of consumer?
A) promotion prone
B) brand loyal
C) price sensitive
D) shopper prone
Answer: C
Diff: 3 Page Ref: 323
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
194) The primary reasons retailers give for supporting a manufacturer's consumer promotions program include each of the following, except:
A) increase store traffic
B) increase store sales
C) increase sales of the manufacturer's brand
D) attract new customers
Answer: C
Diff: 2 Page Ref: 323
Question Tag: Critical Thinking
Objective: 12-2
195) Trade promotions are distinguished from other marketing and IMC tools in that they:
A) involve extensive advertising
B) are offered to customers
C) are used to entice other members of the marketing channel to make purchases
D) are limited to activities by manufacturers
Answer: C
Diff: 1 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
196) Each of the following are recipients of trade promotions, except:
A) end-users and consumers
B) retailers and distributors
C) wholesalers
D) brokers and agents
Answer: A
Diff: 1 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
197) The primary role of trade promotions is to:
A) build brand equity
B) encourage trial purchases
C) pull products through the channel
D) push products through the channel
Answer: D
Diff: 2 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
198) Offering financial incentives to channel members in order to motivate them to make a purchase is a(n):
A) trade allowance
B) trade incentive
C) trade contest
D) vendor support program
Answer: A
Diff: 2 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
199) Trade allowances include all of the following, except:
A) off-invoice allowance
B) exit fees
C) trade shows
D) slotting fees
Answer: C
Diff: 3 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
200) Financial discounts on cases or pallets of merchandise ordered are called:
A) consumer promotions
B) off-invoice allowances
C) cooperative advertising
D) spiff money
Answer: B
Diff: 1 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
201) Funds paid to retailers to stock new products are known as:
A) prepaid off-invoice allowances
B) drop-ship allowances
C) quantity discounts
D) slotting fees
Answer: D
Diff: 1 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
202) A retailer stands to gain a direct payment from:
A) an off-invoice allowance
B) a drop-ship allowance
C) slotting fees
D) forward buying
Answer: C
Diff: 2 Page Ref: 325
Question Tag: Definition (Concept)
Objective: 12-4
203) Manufacturers use each of the following arguments against paying slotting fees, except:
A) they are a form of extortion
B) the fees favor new companies
C) manufacturers are forced to pay millions of dollars that could be used for advertising, sales promotions, and other marketing efforts
D) the fees favor large manufacturers over small manufacturers
Answer: B
Diff: 3 Page Ref: 341
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
204) Monies paid to remove an item from a retailer's inventory are called:
A) reverse slotting fees
B) brokerage allowances
C) exit fees
D) cooperative merchandising agreements
Answer: C
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
205) Exit fees are paid for:
A) covering the cost of removing unsuccessful products from inventory
B) getting a retailer to agree to limit purchases from another vendor
C) shipping costs
D) cooperative advertising programs
Answer: A
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
206) Retailers use each of the following reasons to justify slotting fees, except:
A) retailers must invest time and money in new products
B) the fees help retailers finalize decisions about carrying new products
C) the fees reduce the number of new products that are introduced each year
D) the fees level the playing field between small and large retail outlets
Answer: D
Diff: 3 Page Ref: 325
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
207) Each of the following are problems associated with trade allowances, except:
A) failing to pass along allowances to retail customers
B) forward buying
C) diversion
D) increased advertising costs
Answer: D
Diff: 1 Page Ref: 326
Question Tag: Critical Thinking
Objective: 12-4
208) When the price of product is reduced through a trade allowance, it is referred to as being:
A) on-deal
B) off-deal
C) a side deal
D) a slotting fee
Answer: A
Diff: 1 Page Ref: 326
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
209) When a retailer purchases excess inventory of a product while it is on-deal to sell later when it is off-deal, the process is known as:
A) a diversion
B) quantity-seeking
C) forward buying
D) a slotting fee
Answer: C
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
210) When a retailer stocks up on Maxwell House coffee while it is on-deal to sell them later when they are off-deal, it is called:
A) a diversion
B) quantity-seeking
C) forward buying
D) a slotting fee
Answer: C
Diff: 3 Page Ref: 326
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-4
211) When provided with an offer of a 10% discount to purchase 10,000 electronic calculators within the next 30 days, Target buys 30,000 instead to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of:
A) an off-invoice allowance
B) slotting fee
C) forward buying
D) diversion
Answer: C
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
212) When a retailer purchases a product on-deal in one location and ships it to another where it is off-deal, the process is known as:
A) exit forwarding
B) a diversion
C) a transaction alteration
D) forward buying
Answer: B
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-4
213) In terms of trade allowances, extra shipping costs occur when a retailer engages in:
A) slotting fees
B) exit fees
C) forward buying
D) diversion
Answer: D
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
Objective: 12-4
214) The primary disadvantage to a retailer in using diversion is:
A) additional shipping costs
B) additional carrying costs
C) exit fees
D) slotting fees
Answer: A
Diff: 3 Page Ref: 326
Question Tag: Critical Thinking
Objective: 12-4
215) Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers, or agents would be considered a(n):
A) trade allowance
B) trade contest
C) cooperative merchandise agreement
D) drop-ship allowance
Answer: B
Diff: 1 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-3
216) Rewards given to channel members such as brokers, retail salespeople, and others as prizes for winning a contest are known as:
A) slotting fees
B) volume incentives
C) spiff money
D) pay for play
Answer: C
Diff: 2 Page Ref: 326
Question Tag: Definition (Concept)
Objective: 12-3
217) The primary difference between trade incentives and trade allowances is that for the trade incentive:
A) the retailer must perform some type of function in order to receive the trade incentive
B) the manufacturer must perform some type of function to encourage the retailer to accept the merchandise
C) the retailer receives a price break if they order a specific quantity
D) involves a price reduction being passed on to consumers by retailers
Answer: A
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
218) CMA stands for:
A) cumulative money account
B) cooperative merchandising agreement
C) cooperative manufacturing agreement
D) coercive marketing agenda
Answer: B
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
219) A formal agreement between a retailer and a manufacturer to undertake a two-way marketing effort is called a(n):
A) alliance of capital
B) cooperative merchandising agreement
C) venture agreement
D) sales promotion
Answer: B
Diff: 1 Page Ref: 324
Question Tag: Definition (Concept)
Objective: 12-4
220) A retailer agrees to display a particular brand of shoes in the front of the store and on a special end-of-aisle display in exchange for a price discount by the manufacturer. This is an example of a:
A) trade allowance
B) corporate sales program
C) cooperative merchandising agreement
D) vendor support program
Answer: C
Diff: 3 Page Ref: 327
Question Tag: Application
AACSB: Reflective thinking skills
Objective: 12-4
221) The following are forms of trade incentives, except:
A) cooperative merchandise agreement
B) trade contest
C) premium or bonus pack
D) cooperative advertising program
Answer: B
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
222) Promotional campaigns the retailer plans for customers through manufacturer trade incentives are:
A) slotting fee programs
B) merchandising management programs
C) spiff money allocations
D) calendar promotions
Answer: D
Diff: 2 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
223) Which of these can be used by retailers to always have one brand on sale while others are off-deal?
A) forward buying
B) calendar promotions
C) corporate sales programs
D) trade allowances
Answer: B
Diff: 3 Page Ref: 327
Question Tag: Definition (Concept)
Objective: 12-4
224) A calendar promotion may result in a retailer using:
A) forward buying
B) slotting fees
C) exit fees
D) cooperative advertisements
Answer: A
Diff: 3 Page Ref: 327
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
225) In terms of trade promotions, offering additional free merchandise for placing an order is known as:
A) a slotting fee
B) a discount invoice
C) spiff money
D) a premium or bonus pack
Answer: D
Diff: 1 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
226) Sony is promoting a special coupon and sale on its stereos. Retail stores that purchase at least 1000 stereos during the next 30 days will receive an extra stereo, free, for each 50 they purchase over a 1000 minimum. This is an example of a:
A) CMA
B) calendar promotion
C) corporate sales program
D) premium or bonus pack
Answer: D
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
227) When a manufacturer offers to pay part of the costs of a retail advertising campaign, it is known as:
A) incentive marketing
B) target market advertising
C) cooperative advertising
D) specialty advertising
Answer: C
Diff: 1 Page Ref: 328
Question Tag: Definition (Concept)
Objective: 12-4
228) The "Intel inside" tag line seen in advertisements by a retail computer store or by a computer manufacturer such as Compaq is a form of:
A) direct marketing
B) cooperative advertising
C) producer markup combined with retailer pass-alongs
D) manufacturer's prerogative
Answer: B
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
229) Co-op advertising programs often stipulate each of the following items, except:
A) monies are accrued for purchases over time
B) no competing products can be advertised
C) the manufacturer's product must be displayed prominently in the ad
D) retailers must pay the agency fees
Answer: D
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
Objective: 12-4
230) Retailers benefit from co-op advertising in all of the following ways, except:
A) they can expand their advertising program at a low cost
B) benefit from the image of promoting a national brand
C) attract new and additional customers to their store because of national brands
D) receive money in advance to cover the costs of advertising
Answer: D
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
Objective: 12-3
231) Manufacturers benefit from co-op advertising in all of the following ways, except:
A) gain additional advertising exposure at reduced costs
B) reimbursed by retailers for their share of the ad costs
C) co-op dollars are directly tied to retail sales
D) gain prominent exposure in an ad since no other competing brands can also be displayed
Answer: B
Diff: 3 Page Ref: 328
Question Tag: Critical Thinking
Objective: 12-3
232) From a manufacturer's standpoint, the following are benefits obtained from attending a trade show, except:
A) discover new customers
B) find out what the competition is doing
C) strengthen relationships with current customers
D) identify prospective vendors
Answer: D
Diff: 2 Page Ref: 329
Question Tag: Critical Thinking
Objective: 12-3
233) In a trade show, a buyer browsing and trying to learn about products from a series of competitors is a(n):
A) education seeker
B) reinforcement seeker
C) solution seeker
D) power buyer
Answer: A
Diff: 3 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
234) In a trade show, a buyer seeking reassurance about a previous buy is a(n):
A) information seeker
B) reinforcement seeker
C) solution seeker
D) education seeker
Answer: B
Diff: 3 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
235) In a trade show, a buyer who is trying to solve a specific problem with a product choice is a(n):
A) information seeker
B) reinforcement seeker
C) solution seeker
D) education seeker
Answer: C
Diff: 3 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
236) Manufacturers should concentrate their efforts at trade shows on each of the following buyer groups, except:
A) solution seekers
B) buying teams
C) power buyers
D) education seekers
Answer: D
Diff: 3 Page Ref: 329
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-3
237) At a trade show, manufacturers should weed out which type of buyer group because they are not interested in buying and would take up too much of the vendor's time?
A) solution seekers
B) buying teams
C) education seekers
D) reinforcement seekers
Answer: C
Diff: 3 Page Ref: 329
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
238) At a trade show, the most difficult buyer group for manufacturers to identify would be which group, because they don't want to be identified yet they are a very important group in terms of ability to make purchase decisions?
A) solution seekers
B) buying teams
C) power buyers
D) reinforcement seekers
Answer: C
Diff: 3 Page Ref: 329
Question Tag: Definition (Concept)
Objective: 12-4
239) Several differences exist when international companies attend trade shows. These differences include each of the following, except:
A) international attendees tend to be senior executives with authority to make purchases
B) international attendees want a follow-up after the trade show by a senior executive
C) international attendees spend more time at each exhibitor's booth
D) international attendees tend to make purchase decisions during the trade show
Answer: B
Diff: 2 Page Ref: 329
Question Tag: Critical Thinking
AACSB: Reflective thinking skills
Objective: 12-4
240) Large national and international trade shows are being replaced by:
A) Internet advertising
B) niche and regional shows
C) promotional videos
D) corporate trade shows
Answer: B
Diff: 1 Page Ref: 330
Question Tag: Definition (Concept)
Objective: 12-4
241) Regional or specialty trade shows would be better than a large, national trade show fo
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