978-0133866339 Chapter 12 Part 2

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41) In recent years, marketers have increased the use of which medium for distributing samples?

A) broadcast media

B) freestanding inserts

C) magazines

D) direct mail

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

42) The primary company advantage of internet sampling is that:

A) it is cheaper than the other methods of sampling distribution.

B) more expensive samples can be provided.

C) only individuals who request the sample will receive it.

D) the target market of the sampling program tends to have a higher educational level and higher

income.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

43) The primary disadvantage of sampling is:

A) the inability to target a specific consumer segment.

B) diminished effectiveness.

C) the lack of visibility.

D) the cost of producing and distributing the sample.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

44) 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) gaining the cooperation of retailers and other channel members.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

45) Adding an extra bar of soap to a three pack and offering it at a special price is a:

A) rebate pack.

B) prize package.

C) bonus pack.

D) selective sample.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

46) With a bonus pack, a ________ percent bonus is the most common.

A) 15

B) 30

C) 50

D) 65

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

47) Each of the following is a reason 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

48) All of 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

49) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

50) One method of maintaining brand loyalty and reducing brand switching at a minimal cost is

to use:

A) coupons.

B) bonus packs.

C) contests and sweepstakes.

D) sampling.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

51) A temporary price reduction that is marked on the package of a product is a:

A) bonus offer.

B) price-off.

C) premium.

D) bad idea, because the retailer may not honor the price.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

52) Folks Southern Kitchen advertises an $8.99 lunch special in the local newspaper for a meal

that normally costs $10.99 during March. What type of promotion is being used?

A) Coupon

B) Sampling

C) Premium

D) Price-off

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

53) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

54) 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.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

55) Hershey has both a 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.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

56) When two products from the same company are promoted together within one consumer

promotion, it is a(n):

A) intracompany tie-in.

B) intercompany tie-in.

C) overlay.

D) bonus pack.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

57) When two products from different companies are promoted together within one consumer

promotion, it is a(n):

A) intracompany tie-in.

B) intercompany tie-in.

C) overlay.

D) trade incentive.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

58) Tyson and General Foods developed a joint consumer promotion. This is an example of a(n):

A) intracompany tie-in.

B) intercompany tie-in.

C) overlay.

D) premium.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

59) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

60) A coupon is a price reduction offer to a consumer.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

61) The majority of coupons are sent out through digital media.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

62) FSIs, freestanding inserts, are the most common method used to deliver coupons to

consumers.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

63) An instant redemption coupon may lead to a trial purchase because the customer has

immediate access to the discount.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

64) Bounce-back coupons tend to encourage trial purchases of products.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

65) A scanner-delivered coupon is sent out by the internet.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

66) A scanner-delivered coupon is often given for a competing brand to encourage brand-

switching.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

67) A cross-ruffing coupon is placing a coupon inside a product’s package with a specific

expiration date.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

68) A coupon for peanut butter on a jar of jelly is a cross-ruff coupon.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

69) Customers who already have a preference for a brand redeem the majority of all coupons.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

70) Premiums are prizes or gifts consumers receive when purchasing products.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

71) When a company offers a premium, consumers receive a discount for the good or service and

receive some type of special offer or free merchandise.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

72) A free toy placed inside a package of cereal is an example of an in- or on-package premium.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

73) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

74) A self-liquidating premium is one in which the consumer pays a small amount money for the

gift or item.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

75) Some marketing experts believe overuse of premiums can damage a brand’s image.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-2

76) Premiums are normally much more successful than coupons in increasing sales and profits.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

77) A consumer is typically required to make a purchase when entering a sweepstakes.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

78) A contest requires the use of a skill while a sweepstakes relies on random chance.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

79) In a contest or sweepstakes, extrinsic value is determined by the value of the prize to the

consumer.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

80) In a contest or sweepstakes, intrinsic value is the perceived value the consumer places on the

prizes offered.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

81) A major advantage of using the internet for a contest is that individuals can participate in the

contest for its intrinsic value.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

82) To encourage consumers to continue playing a contest, the intrinsic value of prizes can be

steadily increased by allowing small, incremental rewards.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

83) The primary goal of contests and sweepstakes is to encourage brand switching behavior.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

84) The internet and social media have not been effective venues for contests and sweepstakes.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-2

85) Refunds and rebates suffer the disadvantages of cost and diminished effectiveness.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

86) Rebate programs tend to be more effective than other promotions because consumers get

excited about them and this leads consumers to wait patiently until one is offered before making

a purchase.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

87) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

88) In-store sampling is a program in which samples are given directly to consumers in a retail

store.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

89) Putting a sample of a dryer sheet in a box of laundry detergent is a form of response

sampling.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-2

90) Instant redemption coupons are a form of direct sampling.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2