978-0133866339 Chapter 12 Part 3

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91) Shania received a sample of a new tea drink when she attended a football game in Miami.

This is an example of instant redemption sampling.

Question Tag: Critical Thinking

AACSB Category: Application of knowledge

Objective: 12-2

92) In recent years, marketers have reduced the use of freestanding inserts for the distribution of

samples because of ineffectiveness.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-2

93) It is not possible to offer sampling programs over the internet.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

94) A major disadvantage of sampling is the cost, both of producing and distributing the sample.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

95) A bonus pack works best to attract new customers.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-2

96) Bonus packs can lead to brand switching if the consumer has used the brand previously.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

97) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

98) A consumer who purchases additional products because of a price-off tends to either

consume more or to delay a future purchase of the product.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

99) To be successful, a price-off should feature a monetary appeal to consumers and provide

consumers with an immediate reward.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

100) A tie-in combines two or more consumer promotional activities into a single campaign.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

101) Intracompany tie-ins are the promotion of two different products from different companies

using one consumer promotion.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

102) Intercompany tie-ins are the promotion of two different products from the same company

using one consumer promotion.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

103) What are the major types of coupons?

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

104) What are the four major types of premiums?

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

105) How can a company build a successful premium program?

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-2

106) What is the primary difference between a contest and a sweepstakes?

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

107) For contests and sweepstakes, what is the difference between extrinsic value and intrinsic

value in prizes?

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

108) Name the various forms of sampling.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-2

109) Which category of consumers best responds to coupons and premiums?

A) Promotion-prone consumers

B) Brand-loyal consumers

C) Brand-image consumers

D) Price-sensitive consumers

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

110) A consumer who only purchases his or her favorite brand is:

A) promotion prone.

B) brand loyal.

C) brand responsive.

D) price sensitive.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

111) In terms of planning promotions, consumers can be divided into all of the following

categories except:

A) promotion prone.

B) brand loyal.

C) price sensitive.

D) casual purchasers.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

112) A consumer who makes a purchase decision based on price is:

A) promotion prone.

B) brand loyal.

C) a repeat buyer.

D) price sensitive.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

113) Britney likes to use coupons and tends to purchase the brand of food that has the best

coupon offer. Britney is a ________ consumer.

A) promotion prone

B) brand loyal

C) price sensitive

D) shopper prone

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-3

114) Trey likes to drink Pepsi and will use a consumer promotion, such as a coupon or premium,

only if it is for Pepsi. Trey is a ________ consumer.

A) promotion prone

B) brand loyal

C) price sensitive

D) shopper prone

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-3

115) Oscar is on a tight budget so he uses the consumer promotions that will give him the best

price for products he buys. Oscar is a ________ consumer.

A) promotion prone

B) brand loyal

C) price sensitive

D) shopper prone

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-3

116) Rewards given as contest prizes to brokers, retail salespeople, retail stores, wholesalers, or

agents is considered a:

A) trade allowance.

B) trade contest.

C) cooperative merchandise agreement.

D) drop-ship allowance.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

117) 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.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

118) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

119) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

120) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

121) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

122) Price-sensitive consumers regularly respond to consumer promotions, such as coupons,

price-off deals, and premiums.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

123) Brand-loyal consumers purchase only one particular brand and do not respond to consumer

promotions unless it is for their particular brands.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-3

124) For brand-loyal consumers, price-offs and coupons are the most effective consumer

promotions.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

125) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

126) Promotion-prone and price-sensitive consumers are highly attractive segments to pursue

with consumer promotions.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-3

127) What are the four categories of consumers?

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-3

128) Trade promotions are distinguished from other marketing and IMC tools since trade

promotions:

A) involve extensive advertising.

B) are offered to consumers.

C) are used to entice other members of the marketing channel to make purchases or stock an

item.

D) are limited to activities by manufacturers.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

129) The primary role of a trade promotions program is to:

A) build brand equity.

B) encourage trial purchases.

C) pull products through the channel.

D) push products through the channel.

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-4

130) Offering financial incentives to channel members in order to motivate them to make a

purchase is a:

A) trade allowance.

B) trade incentive.

C) trade contest.

D) vendor support program.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

131) Trade allowances include all of the following except:

A) off-invoice allowance.

B) exit fees.

C) trade shows.

D) slotting fees.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

132) A trade promotion that offers financial discounts on cases or pallets of merchandise ordered

is called a(n):

A) consumer promotion.

B) off-invoice allowance.

C) cooperative advertising.

D) spiff money.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

133) Funds paid to retailers by manufacturers to stock new products are:

A) prepaid off-invoice allowances.

B) drop-ship allowances.

C) quantity discounts.

D) slotting fees.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

134) With ________ a retailer is given a direct payment for stocking an item.

A) an off-invoice allowance

B) a drop-ship allowance

C) slotting fees

D) forward buying

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

135) 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.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

136) Monies paid by a manufacturer to remove an item from a retailer’s inventory are:

A) reverse slotting fees.

B) brokerage allowances.

C) exit fees.

D) cooperative merchandising agreements.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4