Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
Allowing the consumer to try the product or service is called ________.
1)
A)
trial
B)
sampling
C)
premium
D)
point–of–purchase display
E)
specialties
2)
A manufacturer–designed display distributed to retailers who use it to call their customers’
attention to product promotions is known as a ________.
2)
A)
point–of–purchase (POP) display
B)
display slick
C)
spiff
D)
rack job
E)
merchandising display
3)
________ is the term given to promotional stunts used at events, such as the Olympics, by
companies that are not official sponsors.
3)
A)
Co–marketing
B)
Tie–in
C)
Ambush marketing
D)
Sponsorship
E)
Co–branding
4)
What are the two general types of premiums?
4)
A)
direct and mail
B)
retailer–sponsored and manufacturer–sponsored
C)
immediate and delayed
D)
free and self–liquidating
E)
direct and indirect
5)
________ coupons can be redeemed only at the specified retail outlet, and ________ coupons can be
redeemed at any outlet distributing the product.
5)
A)
Rebate; refund
B)
Immediate; delayed
C)
Refund; rebate
D)
Manufacturer–sponsored; retailer–sponsored
E)
Retailer–sponsored; manufacturer–sponsored
6)
Which of the following is NOT a set of activities targeted to salespeople to motivate them to
increase their sales levels?
6)
A)
sales manuals, training programs
B)
programs to better prepare salespeople to do their jobs
C)
sales presentations, and supportive materials
D)
incentives that motivate salespeople to work harder
E)
advertising
2
7)
A direct payment of cash or goods given to the retailer if the retailer agrees to set up the
point–of–sale display is known as a ________.
7)
A)
bonus
B)
display allowance
C)
dealer loader
D)
cooperative allowance
E)
buying allowance
8)
Which of the following is NOT a recommended type of consumer promotion to maintain or
increase market share?
8)
A)
premiums
B)
price deal
C)
sampling
D)
contests
E)
coupons
C
9)
________ present(s) the brand‘s name on something that is given away as a reminder, such as
calendars, pens, T–shirts, mouse pads, and so forth.
9)
A)
Specialty advertising
B)
Specialty promotions
C)
Give–aways
D)
Take–aways
E)
Premiums
A
10)
Where do companies within the same industry gather to present and sell their merchandise, as well
as to demonstrate their products?
10)
A)
industry forums
B)
trade consortiums
C)
industry consortiums
D)
trade shows
E)
industry shows
D
B
11)
What type of promotion is Upromise, which was discussed in the “Hands–On” case at the end of
the chapter?
11)
A)
game
B)
price deal
C)
sweepstake
D)
premium
E)
loyalty program
12)
Which of the following was NOT part of loyalty programs that were given in the text?
12)
A)
Reward customers for their patronage.
B)
Generate information for customer databases.
C)
Focused on attracting new customers rather than rewarding current customers.
D)
Increase customer retention.
E)
The higher the purchase level, the greater the benefits.
C
13)
Which of the following is a promotion to increase customer retention?
13)
A)
coupons
B)
sampling
C)
loyalty programs
D)
sweepstakes
E)
event marketing
C
E
Explanation:
14)
Kodak is trying to create excitement for its line of digital cameras. They used a promotion where
participants submit pictures electronically in the “Kodak Moments” promotion, and judges will
select a grand prize winner to receive a vacation for four to Disney World with several other
lower–level winners receiving Kodak products. What type of consumer promotion is this?
14)
A)
coupon
B)
contest
C)
game
D)
premium
E)
sweepstake
15)
Which of the following is NOT a recommended type of consumer promotion in the reminder stage?
15)
A)
sampling
B)
specialty items
C)
rebates
D)
coupons
E)
All of the above are recommended for the reminder stage.
16)
When promoting Corn Crunchies the marketers wanted to emphasize a clear benefit of the product
through arranging experiences where people can use the product. The marketer had a ________
objective for the promotion?
16)
A)
brand reminder
B)
maintain market share
C)
penetrate the target market
D)
awareness
E)
trial
Explanation:
17)
Which of the following is NOT a type of consumer promotion?
17)
A)
premiums
B)
price deals
C)
contests and sweepstakes
D)
sampling
E)
spiffs
18)
Beverly works at a specialty kitchen store, and the manufacturer of a brand of gourmet mustard
that is sold through her store pays her $1.00 for every jar she sells to consumers. What is this called?
18)
A)
loaders
B)
contest
C)
buying allowance
D)
spiffs
E)
retailer kit
19)
Which of the following is false regarding advertising and sales promotion?
19)
A)
Sales promotion adds tangible value to the product or service.
B)
Advertising adds intangible value to the product or service through image.
C)
Sales promotion strategies can be rational or emotional
D)
Advertising creates a brand image over time, and sales promotion creates immediate action.
E)
Advertising and sales promotion contribute moderately to short–term profitability.
20)
________ require only that participants submit their names to be included in a one–shot drawing or
other chance selection.
20)
A)
Sampling
B)
Contests
C)
Premiums
D)
Sweepstakes
E)
Games
21)
________ means building a product’s marketing program around a sponsored event, such as the
Olympics or a golf tournament.
21)
A)
Tie–in
B)
Event marketing
C)
Co–marketing
D)
Co–branding
E)
Sports marketing
22)
Which of the following is NOT a type of partnership program?
22)
A)
licensing
B)
tie–ins
C)
loyalty programs
D)
co–branding
E)
All of the above are types of partnership programs.
23)
Which is the most common type of trade deals?
23)
A)
point–of–purchase displays
B)
spiffs
C)
push money
D)
buying allowances and advertising allowances
E)
contests
24)
Which of the following is NOT considered a type of sponsorship or event marketing?
24)
A)
supporting the arts
B)
sports sponsorships
C)
festivals, fairs, and other annual events
D)
co–marketing
E)
cause marketing
25)
Sue found a coupon for $2.00 off of Post’s Raisin Bran breakfast cereal in her favorite magazine.
Which type of coupon is this?
25)
A)
co–op
B)
retailer–sponsored
C)
instant
D)
delayed
E)
manufacturer–sponsored
26)
Melissa is in the grocery store to purchase lunch food and snacks for her family. She is in the cookie
aisle and noticed some neon–colored little signs attached to the shelf for a brand she is interested in.
The sign, called a “shelf–talker,” says “was $3.59, now $2.89!” What type of consumer promotion
price deal is this?
26)
A)
bonus packs
B)
banded packs
C)
price–pack deals
D)
coupon
E)
cents–off deal
27)
Allan has worked in the advertising creative field for many years and is moving into sales
promotion creation for his agency’s clients. Although he is aware that consumers and the trade are
primary target audiences for sales promotion, he just learned that there is another target audience.
What is it?
27)
A)
government agencies
B)
vendors
C)
special interest groups
D)
local media
E)
sales force
E
28)
A type of consumer promotion that is a tangible reward for a particular act, usually purchasing a
product or visiting the point–of–purchase is known as a ________.
28)
A)
premium
B)
sample
C)
contest
D)
sweepstake
E)
price deal
A
E
29)
Which of the following typically receives about half of the marketing communication budgets?
29)
A)
event sponsorship
B)
trade promotions
C)
consumer sales promotion
D)
public relations
E)
advertising
30)
________ is where manufacturers develop marketing communication programs with their main
retail accounts, instead of for them.
30)
A)
Co–marketing
B)
Licensing
C)
Ambush marketing
D)
Sponsorship
E)
Tie–ins
31)
Reasons for the move to sales promotion match changes in the marketplace do NOT include?
31)
A)
Consumers are more likely to switch brands because they are better educated, more selective,
and less loyal to brand names than in the past.
B)
Dominant retailers do want promotional incentives because they do not benefit the retailer.
C)
Sales promotion is often the most effective strategy for increasing sales of a parity product.
D)
In most industries, the battle is for market share rather than general product growth, and sales
promotion encourages people to switch products, increasing market share.
E)
Consumers have come to expect constant short–term price reductions such as coupons, sales,
and price promotions.
32)
________ are a type of trade promotion that contain materials that support retailers’ selling efforts
or that help representatives make sales calls on prospective retailing customers.
32)
A)
Retailer kits
B)
Point–of–purchase (POP) kits
C)
Promotion kits
D)
Spiffs
E)
Trade Incentives
33)
What is the ultimate goal of sales promotion?
33)
A)
liking
B)
action
C)
persuasion
D)
awareness
E)
intention
34)
Which of the following is NOT a form of point–of–purchase (POP) display?
34)
A)
merchandising display
B)
price cards
C)
special racks
D)
dump bins
E)
take–aways
35)
What are the two primary roles for a trade promotion?
35)
A)
switching behavior and excitement
B)
trade support and consumer acceptance
C)
consumer acceptance and excitement
D)
trade support and excitement
E)
trade support and image enhancement
Explanation:
36)
Mini–Case Question. What type of partnership program does McDonald’s enter into when its
promotions are related to movies?
36)
A)
co–branding
B)
co–marketing
C)
loyalty program
D)
tie–in
E)
licensing
37)
Which type of consumer sales promotion creates excitement by promising “something for nothing”
and offering impressive prizes that consumers can either compete for or win by chance?
37)
A)
coupons
B)
sweepstakes
C)
premiums
D)
sampling
E)
price deals
38)
Which of the following is NOT a type of direct premium?
38)
A)
store premiums, given to customers at the retail site
B)
co–op premiums, given to consumers at the retail site but paid for by the manufacturer
C)
in–pack premiums, inserted in the package at the factory
D)
container premiums, in which the package is the premium
E)
on–pack premiums, placed on the outside of the package at the factory
39)
A type of consumer sales promotion in which a marketer offers to return a certain amount of
money to the consumer who purchases the product is known as a ________.
39)
A)
refund
B)
rebate
C)
coupon
D)
A and B
E)
A, B, and C
40)
Which of the following is an important dimension of measurement of promotion effectiveness?
40)
A)
payout planning
B)
response rate
C)
redemption rate
D)
A and B
E)
A, B, and C
41)
Which of the following refers to the trade?
41)
A)
retailers
B)
wholesalers
C)
distributors
D)
brokers
E)
all of the above
42)
Which of the following is NOT a typical target audience of sales promotion?
42)
A)
consumers
B)
distributors
C)
retailers
D)
media
E)
sales representatives
43)
Which of the following is a type of trade promotion?
43)
A)
sweepstakes
B)
rebates and refunds
C)
coupons
D)
sampling
E)
point–of–purchase displays
44)
Which of the following was the objective for Frontier Airline’s Favorite Animal Contest discussed
in the chapter’s opening vignette?
44)
A)
Increase market share in the national market
B)
Increase the level of new passengers for Frontier
C)
Drive customers to the website.
D)
Develop a strategic alliance with a major carrier
E)
Build brand awareness among mothers who plan the family vacations.
45)
Which type of premium awards the incentive immediately, at the time of purchase?
45)
A)
self–liquidating
B)
manufacturer–sponsored
C)
retailer–sponsored
D)
free
E)
direct
46)
Who is the target audience of sales promotion?
46)
A)
sales representatives
B)
consumers
C)
trade, such as distributors and retailers
D)
A and B
E)
A, B, and C
Explanation:
47)
Mini–Case Question. The promotion in which customers receive one Happy Meal for every 10 they
purchase is known as a(n) ________.
47)
A)
price deal
B)
loyalty program
C)
tie–in
D)
premium
E)
refund
48)
________ require participants to compete for a prize or prizes based on some sort of skill or ability.
48)
A)
Sampling
B)
Sweepstakes
C)
Premiums
D)
Games
E)
Contests
49)
Which of the following is NOT a use of consumer promotions?
49)
A)
image creation
B)
maintain or increase market share
C)
generate awareness
D)
used as a brand reminder
E)
generate trial
50)
Which of the following are the two types of coupons?
50)
A)
immediate and delayed
B)
retailer and manufacturer
C)
refund and rebate
D)
percentage and cents–off
E)
price cut and added value
51)
Which type of trade promotion rewards a reseller financially for purchase of a certain level of a
product or support of a promotion?
51)
A)
price deals
B)
retailer kits
C)
trade incentives and deals
D)
point–of–purchase displays
E)
contests
52)
A temporary price reduction or a sale price is known as a ________.
52)
A)
spiff
B)
rebate
C)
price–off
D)
price deal
E)
refund
53)
Which of the following is NOT a recommended type of consumer promotion to encourage trial of a
new product?
53)
A)
price deals
B)
special events where the consumer can try the product
C)
coupons
D)
sweepstakes
E)
sampling
Explanation:
54)
Which of the following type of incentive rewards retailers by giving them the display after the
promotion is over?
54)
A)
trade exhibit
B)
buying allowance
C)
dealer loaders
D)
display allowance
E)
bonuses
55)
Dana is developing an integrated marketing communications campaign for a client, and she wants
to include an element that will provide an incentive for consumers to purchase the product. She
also wants to generate excitement for the brand. Which tool should she use to accomplish these
goals?
55)
A)
direct marketing
B)
advertising
C)
sales promotion
D)
personal selling
E)
public relations
C
56)
A type of consumer promotion in which there is a reduction in the normal price charged for a good
or service announced at the point of sale or through mass or direct advertising is known as
________.
56)
A)
banded packs
B)
price–pack deals
C)
coupons
D)
cents–off deals
E)
bonus packs
D
C
Explanation:
57)
________ are premiums, such as a free trip to the Super Bowl, that a manufacturer gives to a retailer
for buying a certain amount of a product.
57)
A)
Loaders
B)
Co–ops
C)
Bonuses
D)
Pushes
E)
Spiffs
58)
Which of the following is true regarding advertising?
58)
A)
creates a brand image over time
B)
contributes greatly to short–term profitability
C)
creates an immediate action
D)
adds tangible value to the product or service
E)
added value strategies rely on rational appeals
59)
Print ads that are ready to be sent to the local print media as soon as the retailer or dealer adds
identification, location, promotion prices, or other information are known as ________.
59)
A)
push money
B)
ad comps
C)
ad slicks
D)
ad incentives
E)
spiffs
60)
Which of the following statements is false regarding sales promotion?
60)
A)
From the consumers‘ perspective, sales promotion reduces the risk associated with a purchase
by giving them something of added value.
B)
Over the years advertising and sales promotion have been battling for their share of the
marketing communication budget.
C)
Shoppers today are better educated and more selective, which means they are more loyal to
brands than in the past.
D)
The chief reasons for the growth of sales promotion are the pressure for short–term profits
and the need for accountability of marketing communication efforts.
E)
Although consumers are an important target for promotions, so are other people, such as the
company’s sales representatives and members of the trade.
61)
Lee was in a drug store to purchase some toiletry items that he needed. He picked up his favorite
brand of toothpaste and noticed that the package said “30 percent more free.” He noticed that the
price was what he normally pays for that toothpaste. Which type of consumer price deal is this?
61)
A)
cents–off deal
B)
bonus pack
C)
price–pack deal
D)
coupon
E)
banded pack
62)
A beer manufacturer offered grocery stores an elaborate display to include near the entrance in
their stores, with a picnic table, gas barbeque, coolers to hold beer, and several lounge chairs.
Larger stores even had a jet ski included in the display. For their efforts, the manager of the store
could keep the items in the display. What type of incentive is this known as?
62)
A)
bonuses
B)
cooperative allowance
C)
buying allowances
D)
retailer kits
E)
dealer loaders
63)
A monetary bonus paid to a store’s salesperson based on the units that salesperson sells over a
period of time is known as ________.
63)
A)
bonuses
B)
spiffs
C)
push money
D)
A and B
E)
A, B, and C
64)
Which of the following is a type of consumer promotion known as a consumer price deal?
64)
A)
cents–off deal
B)
price–pack deal
C)
banded packs
D)
bonus packs
E)
all of the above
E
65)
Consumer promotions are important in a(n) ________ strategy.
65)
A)
pull
B)
push
C)
intermediate
D)
end–user
E)
promotion
A
E