When a manufacturer rewards retailers based on the number of pieces moved through
their scanners, this sales promotion method is known as a:
a. merchandise allowance.
b. count-and-recount allowance.
c. buy-back allowance.
d. scan-back allowance.
e. scan-count allowance.
Brand recognition exists when a customer is aware that the brand exists and views it as
an alternative to purchase if the preferred brand is unavailable or if the other available
brands are unfamiliar to the customer.
a. True
b. False
Kelly Cramer sees a lovely pair of earrings on a television network and calls a toll-free
number to order them, paying with her credit card. This is an example
of____________.
a. online retailing
b. television home shopping
c. telemarketing
d. direct-response marketing
e. catalog marketing
Ralph Lauren, an apparel store realized that spectators make up the majority of its
online followers. The spectators are interested in reading about the latest fashions but
don’t typically create and add their own content. The apparel store wants to match its
marketing efforts for its upcoming spring collection with the characteristics of the
population. Which of the following should the apparel store do?
a. Have a contest to gather consumer-generated content.
b. Ignore comments from Critics.
c. Create a Fan Page and invite consumers to post their thoughts.
d. Post its own promotional messages on blogs and websites.
e. Stick to traditional promotions rather than social networking.
A salesperson finds and analyzes information about each prospect’s specific product
needs, current use of and feeling about brands, and personal characteristics during:
a. prospecting.
b. the approach.
c. presentation preparation.
d. overcoming objections.
e. the preapproach.
Target markets are people who buy the product but do not necessarily usethe product.
a. True
b. False
Convenience stores combine features of discount stores and supermarkets and generally
carry about four times as many items as supermarkets.
a. True
b. False
Sales objectives can do all of the following except:
a. serving as a deterrent both to salespeople and their clients.
b. giving the sales force direction and purpose.
c. serving as a standard for evaluating salesperson performance.
d. letting the sales force know what is expected of them.
e. helping to control the sales force.
__________provide an effective method of selling small items to customers in remote
areas that other wholesalers might find unprofitable to serve.
a. Desk jobbers
b. Specialty-line wholesalers
c. Cash-and-carry wholesalers
d. Truck wholesalers
e. Mail-order wholesalers
The potential advantages of traditional mail surveys are quick response and lower cost
than online surveys.
a. True
b. False
Using only some of the available outlets to distribute a product is known as:
a. selective distribution.
b. intensive distribution.
c. channel conflict.
d. vertical channel integration.
e. exclusive distribution.
Scenario 12.1
Use the following to answer the questions.
Concession Supply sells hotdogs, buns, and nacho ingredients to several major league
ballparks across the country. Currently, Concession Supply has the following pricing
information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,
Selling price = $16, and Variable costs = $6.
Refer to Scenario 12.1. If Concession Supply increased its price by 10 percent and
experienced only a 2 percent decrease in the demand for hotdogs, the demand would be:
a. inelastic.
b. constant
c. prestige.
d. elastic.
e. marginal.
Although a cosmetics brand would like to use as a consumer sales promotion method,
this method has
extremely high labor costs that are more affordable for higher-end make-up companies.
a. frequent-user incentives
b. demonstrations
c. coupons
d. rebates
e. consumer contests
A seller’s profits peak in the maturity stage of a product’s life cycle.
a. True
b. False
A certain location of O’Charley’s Restaurant has annual fixed costs of $200,000. If an
average tab at the restaurant is $60 and the variable costs per tab is $20, how many
groups of customers must O’Charley’s serve per year in order to break even?
a. 2,000
b. 5,000
c. 10,000
d. 3,333
e. 2,500
Consumers make the majority of all their grocery purchases in supermarkets.
a. True
b. False
Which of the following physical distribution functions involves design and operation of
facilities for storing goods?
a. Order processing
b. Materials handling
c. Transportation
d. Warehousing
e. Inventory management
Scenario 15.2
Use the following to answer the questions.
The manufacturers of Whizz, a new laundry detergent, are developing their promotional
plan for the first year. They know they want to use an integrated communications
strategy and are considering the use of advertising through
TV and magazines, coupons, public relations, sales promotion, and viral marketing.
They are not sure when to use each of these methods however, and have asked for your
advice.
Refer to Scenario 15.2. The makers of Whizz considered a new promotional method for
their product. A small box of Whizz was placed in the mailbox of college students as
they came on campus in the fall. Along with the Whizz, the students received a coupon
for $1.00 off their next purchase. They could receive another coupon for $3.00 off if
they went online and emailed five friends at another college, telling them about Whizz.
The friends could then go to a website and print a coupon for $2.00 off their next
purchase. The emails to the five friends are an example of
_____.
a. advertising
b. personal selling
c. sales promotion
d. embedded marketing
e. viral marketing
An opinion leader provides information and is viewed as an authority on all spheres of
interest for reference-group participants.
a. True
b. False