978-0133866339 Chapter 12 Part 4

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137) Exit fees are paid for:

A) covering the cost of removing unsuccessful products from inventory.

B) getting a retailer to agree to limit purchases from another vendor.

C) shipping costs.

D) cooperative advertising programs.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

138) Retailers use each of the following reasons to justify slotting fees except:

A) retailers must invest time and money in new products.

B) the fees help retailers finalize decisions about carrying new products.

C) the fees reduce the number of new products that are introduced each year.

D) the fees level the playing field between small and large retail outlets.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

139) When the price of a product is reduced through a trade allowance, it is referred to as being:

A) on-deal.

B) off-deal.

C) a side deal.

D) a slotting fee.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

140) When a retailer purchases excess inventory of a product while it is on-deal to sell later when

it is off-deal, it is:

A) a diversion.

B) quantity-seeking.

C) forward buying.

D) a slotting fee.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

141) When a retailer stocks up on Maxwell House coffee while it is on-deal to sell the inventory

later when they are off-deal, it is:

A) a diversion.

B) quantity-seeking.

C) forward buying.

D) a slotting fee.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-4

142) When provided with an offer of a 10 percent discount to purchase electronic calculators

within the next 30 days, Target buys extra calculators to take advantage of the price discount.

Target will offer the calculator to consumers at a discount during the special sale, but then have

additional calculators to sell when the sale is over. This is an example of:

A) an off-invoice allowance.

B) slotting fee.

C) forward buying.

D) diversion.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

143) When a retailer purchases a product on-deal in one location and ships it to another where it

is off-deal, it is called:

A) exit forwarding.

B) diversion.

C) a transaction alteration.

D) forward buying.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

144) In terms of trade allowances, extra shipping costs occur when a retailer engages in:

A) slotting fees.

B) exit fees.

C) forward buying.

D) diversion.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

145) The primary disadvantage to a retailer in using diversion is:

A) additional shipping costs.

B) additional carrying costs.

C) exit fees.

D) slotting fees.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

146) The primary difference between trade incentives and trade allowances is that for the trade

incentive:

A) the retailer must perform some type of function in order to receive the trade incentive.

B) the manufacturer must perform some type of function to encourage the retailer to accept the

merchandise.

C) the retailer receives a price break if they order a specific quantity.

D) involves a price reduction being passed on to consumers by retailers.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

147) A formal agreement between a retailer and a manufacturer to undertake a two-way

marketing effort is:

A) alliance of capital.

B) cooperative merchandising agreement.

C) venture agreement.

D) sales promotion.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

148) A retailer agrees to display a particular brand of shoes in the front of the store and on a

special end-of-aisle display in exchange for a price discount by the manufacturer. This is an

example of a:

A) trade allowance.

B) corporate sales program.

C) cooperative merchandising agreement.

D) vendor support program.

Question Tag: Application

AACSB Category: Application of knowledge

Objective: 12-4

149) Promotional campaigns that a retailer plans for customers through manufacturer trade

incentives are:

A) slotting fee programs.

B) merchandising management programs.

C) spiff money allocations.

D) calendar promotions.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

150) Which of these can be used by retailers to always have one brand on sale while others are

off-deal?

A) Forward buying

B) Calendar promotions

C) Corporate sales programs

D) Trade allowances

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-4

151) A calendar promotion may result in a retailer using:

A) forward buying.

B) slotting fees.

C) exit fees.

D) cooperative advertisements.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

152) In terms of trade promotions, offering additional free merchandise for placing an order is:

A) a slotting fee.

B) a discount invoice.

C) spiff money.

D) a premium or bonus pack.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

153) Sony is promoting a special coupon and sale on its stereos. Retail stores that purchase at

least 1,000 stereos during the next 30 days will receive an extra stereo, free, for each 50 they

purchase over a 1,000 minimum. This is an example of a:

A) CMA.

B) calendar promotion.

C) corporate sales program.

D) premium or bonus pack.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

154) When a manufacturer offers to pay part of the cost of a retail advertising campaign, it is:

A) incentive marketing.

B) target market advertising.

C) cooperative advertising.

D) specialty advertising.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

155) The “Intel inside” tag line seen in advertisements by a retail computer store or by a

computer manufacturer such as Dell is a form of:

A) direct marketing.

B) cooperative advertising.

C) producer markup combined with retailer pass-alongs.

D) manufacturer’s prerogative.

Question Tag: Critical Thinking

AACSB Category: Application of knowledge

Objective: 12-4

156) Co-op advertising programs often stipulate each of the following items except:

A) monies are accrued for purchases over time.

B) no competing products can be advertised.

C) the manufacturer’s product must be displayed prominently in the ad.

D) retailers must pay the agency fees.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

157) In a trade show, a buyer browsing and trying to learn about products from a series of

competitors is a(n):

A) education seeker.

B) reinforcement seeker.

C) solution seeker.

D) power buyer.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

158) In a trade show, a buyer who is trying to solve a specific problem with a product choice is

a(n):

A) information seeker.

B) reinforcement seeker.

C) solution seeker.

D) education seeker.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

159) At a trade show, manufacturers should not pursue which type of buyer group because they

are not interested in buying and would take up too much of the vendor’s time?

A) Solution seekers

B) Buying teams

C) Education seekers

D) Reinforcement seekers

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

160) At a trade show, the most difficult buyer group for manufacturers to identify would be

________ because they do not want to be identified, yet are a very important group in terms of

ability to make purchase decisions.

A) solution seekers

B) buying teams

C) power buyers

D) reinforcement seekers

Question Tag: Definition (Concept)

AACSB Category: Reflective thinking

Objective: 12-4

161) Several differences exist when international companies attend trade shows. These

differences include each of the following except international attendees:

A) tend to be senior executives with authority to make purchases.

B) want a follow-up after the trade show by a senior executive.

C) spend more time at each exhibitor’s booth.

D) tend to make purchase decisions during the trade show.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4

162) Large national and international trade shows are being replaced by:

A) internet advertising.

B) niche and regional shows.

C) promotional videos.

D) corporate trade shows.

Question Tag: Definition (Concept)

AACSB Category: Application of knowledge

Objective: 12-4

163) Regional or specialty trade shows would be better than a large, national trade show for all

of the following goals except:

A) provide higher quality prospects.

B) more quality one-on-one time with customers.

C) enhance a firm’s brand or corporate name.

D) opportunities to bond with customers.

Question Tag: Critical Thinking

AACSB Category: Reflective thinking

Objective: 12-4