Explain the hierarchy-of-effects metaphor, and discuss why it is important for marketing communicators to understand it.
Question 2Which of the following statements is FALSE concerning in- and on-pack coupons?
a. There are virtually no distribution costs.
b. They have the lowest redemption rates of all the coupon-distribution methods.
c. They offer delayed value to consumers.
d. They do not reach nonusers of the carrying brand.
e. Trade interest is relatively low due to the delayed nature of the offer.
Question 3To employ the profit-maximization rule for budget setting, the advertising decision maker must know the _____ for every brand for which a budgeting decision will be made.
a. consumer-response factors
b. sales-to-advertising response function
c. availability ratio
d. return on investment calculation
e. hierarchy-of-effects model
Question 4Which of the following is a problem with coupons distributed in magazines and newspaper (noninsert)?
a. low redemption rates
b. susceptible to misredemption
c. do not generate much trade interest
d. high redemption rates
e. a, b, and c
Question 5Which of the following companies is the leading advertiser in the wireless phone provider industry?
a. T-Mobile
b. AT&T
c. Verizon
d. TracFone Wireless
e. Sprint
Question 6Research indicates that there is some evidence that FSIs also perform a(n) _____ function.
a. point-of-purchase
b. public relations
c. advocacy
d. advertising
e. personal selling
Question 7Which budgeting method considers advertising along with other marcom elements as relatively unimportant to a brand's present success and future growth?
a. percentage-of-sales method
b. objective-and-task method
c. competitive parity method
d. affordability method
e. comparative method
Question 8Which of the following is FALSE regarding mail-delivered coupons?
a. Mailed coupons achieve the highest household penetration.
b. Direct-mail coupons increase the amount of product purchases.
c. Mail-delivered coupons achieve the highest redemption rate of all mass-delivered coupon techniques.
d. Mail-delivered coupons represent about 1 percent of all manufacturer-distributed coupons.
e. Direct-mailed coupons are the least expensive coupon distribution method.
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