Question 1

Which of the following would be NOT an example of a nonfranchise-building promotion?

Accepted Answer

A)  price-off deals
B)  bonus packs
C)  rebates
D)  image advertising
E)  promotional deals to retailersF) A) and D)
G) B) and D)

Question 2

Which of the following statements explains why retailers such as grocery stores are critical of everyday low pricing?

Accepted Answer

A)  They prefer to operate on a high/low strategy of frequent price specials that can be used to attract shoppers.
B)  They argue that everyday low pricing puts them at a disadvantage against warehouse stores and mass merchandiser.
C)  They argue that some products are purchased on impulse and do not lend themselves to everyday low pricing.
D)  They rely on promotions such as end-aisle displays and price discounts to generate excitement and generate profits from many product categories,and everyday low pricing makes it difficult to do this.
E)  All of the above following statements explain why retailers are critical of everyday low pricing.F) D) and E)
G) A) and C)

Question 3

Which of the following is NOT a problem associated with the use of contests and sweepstakes?

Accepted Answer

A)  The contest or sweepstakes offer may overshadow the brand.
B)  There are numerous legal problems and considerations included in designing and administering these promotions.
C)  Professional entrants often defeat the purpose of contest and sweepstakes and undermine their effectiveness.
D)  The contest or sweepstakes can create excitement and interest in a brand.
E)  The contest or sweepstakes often fails to contribute to the brand franchise.F) A) and B)
G) B) and E)

Question 4

Which of the following statements about sales promotions is true?

Accepted Answer

A)  Ivory soap carving contests were used to support the war effort in World War II.
B)  McDonald's was sued for illegally using the Monopoly game contest.
C)  The Oscar Mayer Wienermobile was the first sales promotion premium offer.
D)  Sweepstakes are seen as more involving and more motivating than contests.
E)  The oldest,most widely used,and most effective sales promotion tool is the cents-off coupon.F) A) and D)
G) A) and E)

Question 5

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.

Accepted Answer

A)  cost-covered
B)  self-liquidating
C)  subsidized
D)  cost-plus
E)  base-costF) All of the above
G) B) and C)

Question 6

_____ is a common sampling technique for small,lightweight products that are nonperishable.

Accepted Answer

A)  Door-to-door sampling
B)  Sampling through the mail
C)  In-store sampling
D)  On-package sampling
E)  Location samplingF) A) and D)
G) A) and B)

Question 7

Why have frequency programs become so popular with marketers?

Accepted Answer

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 and 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.F) B) and E)
G) All of the above

Question 8

Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?

Accepted Answer

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 moviesF) C) and D)
G) A) and E)

Question 9

Which of the following statements explains why marketers have recently increased their use of sampling?

Accepted Answer

A)  Major companies have entered the sampling business and created more competition,which has helped to keep sampling costs down.
B)  New technologies and creative marketing are driving new sampling methods that allow marketers to target their samples more effectively.
C)  The simplification of sales promotion programs by companies such as Procter & Gamble is prompting these marketers to move away from coupons and price promotions in favor of samples.
D)  Marketers believe sampling meets the complementary goals of introducing consumers to their products and getting retailers to support their programs.
E)  All of the above statements explain why marketers have recently increased their use of sampling.F) B) and C)
G) A) and C)

Question 10

Money that must be paid to a retailer so it will take on a company's new product is known as:

Accepted Answer

A)  slotting allowances
B)  failure fees
C)  spiffs
D)  new product fees
E)  trade discountsF) None of the above
G) A) and E)

Question 11

All of the following are examples of trade-oriented sales promotion activities EXCEPT:

Accepted Answer

A)  off-invoice allowances
B)  promotional allowances
C)  point-of-purchase displays
D)  trade shows
E)  couponsF) A) and E)
G) C) and D)

Question 12

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:

Accepted Answer

A)  consumer franchise-building promotion
B)  nonfranchise-building promotion
C)  sweepstakes
D)  image promotions
E)  trade promotionsF) A) and B)
G) A) and C)

Question 13

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:

Accepted Answer

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 segmentF) All of the above
G) B) and D)

Question 14

Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?

Accepted Answer

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.F) All of the above
G) A) and B)

Question 15

Some retailers have demanded payment for new products that do not reach a minimum sales target.These payments are called:

Accepted Answer

A)  failure fees
B)  slotting allowances
C)  push monies
D)  slotting fees
E)  street moniesF) A) and B)
G) C) and D)

Question 16

Which of the following statements about rebates is true?

Accepted Answer

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)  All of the following statements about rebates are true.F) A) and C)
G) C) and E)

Question 17

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are:

Accepted Answer

A)  nonfranchise building promotions
B)  franchise building promotions
C)  high-involvement sales promotions
D)  sales promotion traps
E)  event marketingF) B) and C)
G) A) and E)

Question 18

Periodically cosmetics manufacturers offer consumers the opportunity to buy a several different cosmetics for one low price usually in some tote bag or plastic case created for the promotion.Since several cosmetics manufacturers use this incentive method,it is likely to:

Accepted Answer

A)  create a synergistic effect
B)  create a sales promotional trap or spiral
C)  require a multilevel sales promotion
D)  require a trade-off allowance
E)  exemplify the attribution theory in operationF) D) and E)
G) B) and E)

Question 19

In many areas of the country,supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:

Accepted Answer

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 operationF) A) and E)
G) C) and E)

Question 20

The Kraft clause is:

Accepted Answer

A)  a disclaimer used with contests and sweepstakes to protect the sponsoring company
B)  a law used to protect companies against fraudulent coupon redemption
C)  a law that frees a sponsoring company from liability during event sponsorship
D)  in the small print that comes with every rebate and refund offer and states the purchaser can only redeem one time
E)  none of the above F) A) and B)
G) B) and E)

Exam 16: Sales Promotion

In many areas of the country,supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:

Correct Answer
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Periodically cosmetics manufacturers offer consumers the opportunity to buy a several different cosmetics for one low price usually in some tote bag or plastic case created for the promotion.Since several cosmetics manufacturers use this incentive method,it is likely to:

Correct Answer
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Which of the following statements explains why retailers such as grocery stores are critical of everyday low pricing?

Correct Answer
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Which of the following statements about rebates is true?

Correct Answer
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Why have frequency programs become so popular with marketers?

Correct Answer
verified

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:

Correct Answer
verified

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.

Correct Answer
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Which of the following statements explains why marketers have recently increased their use of sampling?

Correct Answer
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_____ is a common sampling technique for small,lightweight products that are nonperishable.

Correct Answer
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All of the following are examples of trade-oriented sales promotion activities EXCEPT:

Correct Answer
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Money that must be paid to a retailer so it will take on a company's new product is known as:

Correct Answer
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The Kraft clause is:

Correct Answer
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Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?

Correct Answer
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Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are:

Correct Answer
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Some retailers have demanded payment for new products that do not reach a minimum sales target.These payments are called:

Correct Answer
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Correct Answer
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Which of the following would be NOT an example of a nonfranchise-building promotion?

Correct Answer
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Which of the following statements about sales promotions is true?

Correct Answer
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Which of the following is NOT a problem associated with the use of contests and sweepstakes?

Correct Answer
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Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?

Correct Answer
verified

Exam 16: Sales Promotion

In many areas of the country,supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:

Correct AnswerverifiedShow Answer

Periodically cosmetics manufacturers offer consumers the opportunity to buy a several different cosmetics for one low price usually in some tote bag or plastic case created for the promotion.Since several cosmetics manufacturers use this incentive method,it is likely to:

Correct AnswerverifiedShow Answer

Which of the following statements explains why retailers such as grocery stores are critical of everyday low pricing?

Correct AnswerverifiedShow Answer

Which of the following statements about rebates is true?

Correct AnswerverifiedShow Answer

Why have frequency programs become so popular with marketers?

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following statements explains why marketers have recently increased their use of sampling?

Correct AnswerverifiedShow Answer

_____ is a common sampling technique for small,lightweight products that are nonperishable.

Correct AnswerverifiedShow Answer

All of the following are examples of trade-oriented sales promotion activities EXCEPT:

Correct AnswerverifiedShow Answer

Money that must be paid to a retailer so it will take on a company's new product is known as:

Correct AnswerverifiedShow Answer

The Kraft clause is:

Correct AnswerverifiedShow Answer

Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?

Correct AnswerverifiedShow Answer

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are:

Correct AnswerverifiedShow Answer

Some retailers have demanded payment for new products that do not reach a minimum sales target.These payments are called:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would be NOT an example of a nonfranchise-building promotion?

Correct AnswerverifiedShow Answer

Which of the following statements about sales promotions is true?

Correct AnswerverifiedShow Answer

Which of the following is NOT a problem associated with the use of contests and sweepstakes?

Correct AnswerverifiedShow Answer

Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?

Correct AnswerverifiedShow Answer

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