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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
21
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
22
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
23
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
24
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
25
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
26
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
27
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
28
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
29
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
30
