76. Olivia is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force
compensation method used at Zappos.com to determine if there is a better way to manage compensation. Olivia
knows that the _____ method is easy to administer, yields more predictable selling expenses, and provides sales
managers with a large degree of control over salespeople.
a. straight commission
b. salary plus bonus
c. salary and commission
d. straight commission and combination
e. straight salary
77. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force
compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales
force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements?
a. Combination
b. Straight salary
c. Straight salary plus generous fringe benefits
d. Straight commission
e. Salary plus a bonus
Chapter 17 – Personal Selling and Sales Promotion
78. Savanna is a sales person for Aeropostale. Her compensation is based on a set salary plus a commission based on
sales.Savanna’scompensationisbasedona(n):
a. straight salary compensation plan.
b. combination compensation plan.
c. straight salary plus generous fringe benefits
d. straight commission compensation plan.
e. salary plus bonus program.
79. Effective motivation of a sales force is best achieved through:
a. annual retreats at resort locations open to families.
b. emphasizing sales force objectives and their connection to compensation.
c. an organized set of activities performed continuously.
d. motivation meetings when sales have declined.
e. daily pep talks before the sales force makes sales calls.
Chapter 17 – Personal Selling and Sales Promotion
80. In designing sales territories, a sales manager considers several major factors. The territories must be constructed
so that sales potential can be measured; the shape of the territories should facilitate salespeople’s activities to
provide the best possible coverage of customers; and:
a. territories should be designed to minimize selling costs.
b. territories should be of the same size.
c. territories should be designed in concentric circles.
d. the density of potential customers should be minimized.
e. the distribution of customers should be relatively equal.
81. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic
size; this will cause the salespeople with larger territories to:
a. develop larger income potentials.
b. work longer and harder to generate a certain sales volume.
c. work about the same amount, since potential is the same.
d. have much larger sales than those salespeople with smaller territories.
e. be limited to a smaller income potential.
Chapter 17 – Personal Selling and Sales Promotion
82. Customer density and distribution are important factors in:
a. prospecting.
b. motivating salespeople.
c. creating sales territories.
d. compensating salespeople.
e. establishing sales force objectives.
83. Jake is a sales representative for General Mills. Each week he uploads his plans for visiting clients out in the field to
a routing and scheduling decisions system. Eric knows that one of the primary goals of routing and scheduling
decisions in personal selling is to:
a. determine the sequence in which customers will be called on.
b. use existing transportation facilities.
c. minimize nonselling time.
d. determine duration of sales calls.
e. provide salespeople with an opportunity to plan their own routes and schedules.
Chapter 17 – Personal Selling and Sales Promotion
84. Jake, a sales representative is returning from a week on the road. One of his activities is to develop _____, which
are designed to identify the customers called on and to present detailed information about interaction with those
clients.
a. sales invoices
b. feedback notices
c. expense reports
d. call reports
e. recall files
85. The most common sales force evaluation practices are for sales managers to compare a salesperson’s performance
with other salespeople operating under similar selling conditions, or to compare:
a. the size of sales territories.
b. selling expenses by various members of the sales force.
c. the amount of new business generated.
d. current performance with past performance.
e. the ratio of costs to profits.
Chapter 17 – Personal Selling and Sales Promotion
86. Nate is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation of her performance for the
previous year led to the conclusion that she often lacked key product information at sales presentations. At their
upcoming session, he will most likely do which of the following?
a. Decrease the size of her territory.
b. Increase her sales quotas.
c. Terminate her.
d. Recommend that she attend a training program.
e. Ignore this problem given that her sales results were good.
87. In establishing sales promotion objectives, a marketer should always:
a. concentrate on activities that will increase consumer demand.
b. focus on consumers.
c. focus on resellers.
d. be defensive in the methods used.
e. align these objectives with the organization’s overall objectives.
Chapter 17 – Personal Selling and Sales Promotion
88. When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which
factor below is unlikely to affect decisions regarding sales promotion methods?
a. Type of package
b. Product characteristics
c. Target market characteristics
d. Types of resellers
e. Competitive forces in the environment
89. Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at
her company for the month of October. This contest exemplifies a company’s efforts at:
a. motivating salespeople.
b. compensating salespeople.
c. providing training for the sales force.
d. increasing sales territories.
e. promoting salespeople.
Chapter 17 – Personal Selling and Sales Promotion
90. In recent years, the proportion of promotional dollars spent on sales promotion has:
a. increased relative to advertising.
b. remained constant.
c. declined slightly, and the proportion spent on advertising has increased.
d. declined slightly, and the proportion spent on advertising has declined as well.
e. increased, and the proportion spent on advertising has increased as well.
91. Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has
increased in recent years?
a. Retailers have become more powerful compared to manufacturers and are demanding more trade sales
promotion efforts.
b. Due to increased focus on value, consumers are more responsive to promotional offers.
c. The greater emphasis on improving long-term performance has resulted in an increased use of sales
promotion methods.
d. Sales promotions aimed at convincing customers to change brands are more effective because of decline in
brand loyalty in general.
e. Consumers are more responsive to price discounts and point-of-purchase displays.
Chapter 17 – Personal Selling and Sales Promotion
92. Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to
try its products. All of these marketing activities are considered:
a. trade sales promotion methods.
b. consumer incentives.
c. consumer sweepstakes.
d. buying allowances.
e. consumer sales promotion methods.
93. As a famous food products brand tries to decide how to introduce its new line of breakfast bars, it considers all the
advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, the
brand decides to use _____, which are the most widely used form of consumer sales promotion.
a. free samples
b. rebates
c. point-of-purchase displays
d. coupons
e. cents-off offers
Chapter 17 – Personal Selling and Sales Promotion
94. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new
customers are believed to be disadvantages of:
a. sweepstakes.
b. money refunds.
c. frequent-user incentives.
d. coupons.
e. premiums.
95. As a promotional strategy, using coupons strives to achieve all of the following except:
a. show how a product is used.
b. increase sales volume quickly.
c. introduce new package sizes.
d. prompt trial usage of a new product.
e. attract repeat users.
Chapter 17 – Personal Selling and Sales Promotion
96. _____ are offers of cash to customers who purchase a specific product, and _____ are offers of cash to
customers who purchase a specific quantity of a specific product.
a. Rebates; reimbursements
b. Cents-off; refunds
c. Rebates; premiums
d. Buy-back allowances; money refunds
e. Rebates; money refunds
97. Which of the following is most likely to stimulate customer loyalty?
a. Coupons
b. Sweepstakes
c. Frequent-user incentives
d. Samples
e. Premiums
Chapter 17 – Personal Selling and Sales Promotion
98. TasteIt Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an
entire card. This is an example of a:
a. free sample.
b. rebate.
c. frequent-user incentive.
d. premium.
e. consumer contest.
99. Signs, counter pieces, racks, and self-service cartons are all forms of:
a. rebates.
b. demonstrations.
c. retail media.
d. premiums.
e. point-of-purchase displays.
Chapter 17 – Personal Selling and Sales Promotion
100. 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
101. _____ are the most expensive sales promotion method because production and distribution entail high costs.
a. Samples
b. Coupons
c. Point-of-purchase materials
d. Money refunds
e. Premiums
Chapter 17 – Personal Selling and Sales Promotion
102. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the
large-size box. This form of sales promotion is called a:
a. premium.
b. coupon.
c. cents-off offer.
d. free sample.
e. money refund.
103. _____ are items offered free or at minimal cost as a bonus for purchasing a product.
a. Rebates
b. Premiums
c. Samples
d. Merchandise allowances
e. Coupons
Chapter 17 – Personal Selling and Sales Promotion
104. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring
Tiger Woods. This is an example of a:
a. consumer prize.
b. rebate.
c. premium.
d. free sample.
e. coupon.
105. On a break between classes, Kelley enters her contact information on the Publishers Clearing House site. She
doubts that she will win $10 million, but she never passes up a chance to participate in a:
a. premium.
b. consumer contest.
c. trade sale.
d. sales contest.
e. sweepstakes.
Chapter 17 – Personal Selling and Sales Promotion
106. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer’s products and market those
products more aggressively is a:
a. trade sales promotion method.
b. point-of-purchase method.
c. consumer sales promotion method.
d. merchandise allowance.
e. dealer loader.
107. Which of the following is an example of a trade sales promotion method?
a. Frequent-user incentives
b. Point-of-purchase displays
c. Retailer coupons
d. Free merchandise
e. Money refunds
Chapter 17 – Personal Selling and Sales Promotion
108. Tyler is a purchasing agent for a popular breakfast cereal manufacturing firm. He is currently negotiating with his
suppliers to receive a _____, which is a temporary price reduction to resellers for purchasing specified quantities of
a product.
a. push money allowance
b. merchandise allowance
c. buying allowance
d. buy-back allowance
e. discount
109. Retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are
used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the
purchase of an item in large quantities. This type of sales promotion is called _____.
a. push money
b. buy-back allowance
c. buying allowance
d. cents-off offer
e. money refund
Chapter 17 – Personal Selling and Sales Promotion
110. If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial
consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased.
This type of sales promotion is a:
a. buying allowance.
b. count-and-recount allowance.
c. scan-back allowance.
d. buy-back allowance.
e. merchandise allowance.
111. 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.
Chapter 17 – Personal Selling and Sales Promotion
112. Unicorn, an apparel brand, agrees to pay a department store chain money for providing television advertising and
Sunday newspaper sales fliers emphasizing Unicorn jeans. Unicorn is offering:
a. premium money.
b. cooperative advertising.
c. a dealer loader.
d. a buying allowance.
e. a merchandise allowance.
113. An arrangement in which a manufacturer pays a certain amount of a retailer’s media costs for advertising that
manufacturer’s products is:
a. a buy-back allowance.
b. a merchandise allowance.
c. premium money.
d. push money.
e. cooperative advertising.
Chapter 17 – Personal Selling and Sales Promotion
114. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Kmart and
Walmart. This form of sales promotion is called:
a. cooperative advertising.
b. a dealer listing.
c. push money.
d. a dealer loader.
e. an advertising allowance.
115. Kaylaistheownerofagroupofwomen’sclothingstoreslocatedthroughoutMidwesternUnitedStates.Recently,
she made a large purchase from a leading clothing manufacturer, and was given _____, which is a gift to a retailer
who purchases a specified quantity of merchandise.
a. a dealer loader
b. a premium
c. a scan-back allowance
d. a merchandise allowance
e. a buy-back allowance
Chapter 17 – Personal Selling and Sales Promotion