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109. Although Maybelline 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 such as Clinique and Estée Lauder.
a.
frequent-user incentives
b.
demonstrations
c.
coupons
d.
rebates
e.
consumer contests
110. Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey
Baronas rules out ____ as playing a role in her sales promotion plan.
a.
samples
b.
coupons
c.
point-of-purchase materials
d.
money refunds
e.
premiums
111. 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.
112. ____ 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
113. 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.
free merchandise.
114. On a break between classes, Kelley checks her smartphone and 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.
lottery.
b.
consumer contest.
c.
game of chance.
d.
sales contest.
e.
sweepstakes.
115. The difference between consumer sales promotion methods and trade sales promotion methods is
a.
with consumer sales promotion, marketers try to persuade retailers to carry their products.
b.
with trade sales promotion, marketers focus on trading with consumers.
c.
consumer and trade sales promotions aim at retailers, but only trade sales promotions aim at wholesalers.
d.
consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions
focus on getting wholesalers and retailers to buy.
e.
trade sales promotions attempt to persuade people to buy at particular stores, whereas consumer sales
promotions focus on persuading people to buy particular products.
116. 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 material.
c.
consumer sales promotion method.
d.
merchandise allowance.
e.
dealer loader.
117. 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
118. Tyler is a purchasing agent for Kellogg’s. 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.
a merchandise allowance
c.
a buying allowance
d.
a buy-back allowance
e.
a discount
119. Sometimes 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. What is this sales promotion?
a.
Push money
b.
Buy-back allowance
c.
Buying allowance
d.
Cents-off offer
e.
Money refund
120. 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.
coupon follow-up campaign.
121. 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.
122. When Levi's agrees to pay JC Penney's money for providing television advertising and Sunday newspaper sales fliers
emphasizing Levi's jeans, Levi's is offering
a.
premium money.
b.
cooperative advertising.
c.
a dealer loader.
d.
a buying allowance.
e.
a merchandise allowance.
123. 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.
124. 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(n)
a.
cooperative advertising.
b.
dealer listing.
c.
push money.
d.
dealer loader.
e.
advertising allowance.
125. Kayla is the owner of a group of women’s clothing stores located throughout the midwestern United States. 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.
push money
d.
a merchandise allowance
e.
a buy-back allowance
126. A dealer loader is
a.
additional compensation to salespeople from the manufacturer to promote a line of goods.
b.
an agreement in which a producer offers free merchandise to a retailer.
c.
an advertisement that promotes a product and identifies retailers who sell the product.
d.
a gift to a retailer who purchases a specified quantity of merchandise.
e.
a temporary price reduction to resellers for purchasing a certain quantity of merchandise.
127. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second quarter he is going to sell all
the Alance watches he can and use his extra earnings to go to Cancun. He exclaims, "Can you believe the ____ program
they have on for this quarter?"
a.
buying allowance
b.
merchandise allowance
c.
push money
d.
dealer loader
e.
sweepstakes
128. While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales
promotion is that
a.
they are often too complicated.
b.
they are not taken seriously by the employees.
c.
people often discontinue their positive behavior after the contest is over.
d.
many point-of-purchase display materials are needed to implement a contest.
e.
people often feel they are not being recognized enough.
129. Scenario 18.1
Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores
around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its
merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he
has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by
adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over
$100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan
where he will earn 15% of all sales, but no draw.
Refer to Scenario 18.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online.
Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who
currently are his customers. Sean is involved in which step of the personal selling process?
a.
Prospecting
b.
Preapproach
c.
Overcoming objections
d.
Closing
e.
Following up
130. Scenario 18.1
Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores
around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its
merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he
has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by
adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over
$100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan
where he will earn 15% of all sales, but no draw.
Refer to Scenario 18.1. Sean selects several motorcycle stores who are not currently his customers. He then obtains and
analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history.
Sean is engaged in which of the following?
a.
prospecting.
b.
the preapproach.
c.
approaching the customer.
d.
making the presentation.
e.
overcoming objections.
131. Scenario 18.1
Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores
around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its
merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he
has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by
adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over
$100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan
where he will earn 15% of all sales, but no draw.
Refer to Scenario 18.1. Sean has narrowed his list and is preparing a packet of information about Jafrum and its products
to send to the prospects. He also includes a letter of introduction and says he will contact them within the next two weeks
to set up a sales visit. In this scenario, Sean is all of the following except
a.
a trade salesperson.
b.
a field order taker.
c.
a missionary salesperson.
d.
an order getter.
e.
a new business salesperson.
132. Scenario 18.1
Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores
around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its
merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he
has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by
adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over
$100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan
where he will earn 15% of all sales, but no draw.
Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan, however he is considering changing to
the ____ plan.
a.
straight salary; salary plus commission
b.
straight commission; straight salary
c.
salary plus commission; straight commission
d.
salary plus bonus; straight bonus
e.
straight bonus; straight commission
133. Scenario 18.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home
deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce.
Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has
just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next
season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which
demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry
and other members of the salesforce will be given a free grill for their own home use so they can become more familiar
with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar
in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Refer to Scenario 18.2. Kerry and the other salesforce members are best described as a ____ sales force.
a.
technical
b.
missionary
c.
trade
d.
field
e.
pioneer
134. Scenario 18.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home
deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce.
Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has
just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next
season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which
demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry
and other members of the salesforce will be given a free grill for their own home use so they can become more familiar
with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar
in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Refer to Scenario 18.2. Presto appears to be using ____ to educate its sales force.
a.
formal sales training
b.
on-the-job training
c.
negative motivation
d.
territorial meetings
e.
recruiting training
135. Scenario 18.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home
deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce.
Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has
just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next
season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which
demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry
and other members of the salesforce will be given a free grill for their own home use so they can become more familiar
with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar
in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Refer to Scenario 18.2. Which of the following are consumer sales promotion methods that Presto is using for the new
stovetop grill?
a.
television commercials and the customer contest
b.
television commercials and the in-store rebate
c.
the customer contest and the in-store rebate
d.
the sales force contest and the in-store rebate
e.
the sales force contest and the customer contest
136. Scenario 18.2
Use the following to answer the questions.
The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home
deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C. Penney's, through its own salesforce.
Kerry Wilson is one of Presto's salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has
just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next
season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan
for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which
demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry
and other members of the salesforce will be given a free grill for their own home use so they can become more familiar
with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar
in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5
discount for each grill that the store purchases after the 60-day promotion is over.
Refer to Scenario 18.2. Presto's use of a free trip to New York is an example of ____, while the $5 discount to its retail
stores is an example of ____.
a.
a trade allowance; a buy-back allowance
b.
a buying allowance; a dealer loader
c.
a dealer loader; a buy-back allowance
d.
a sales contest; a buy-back allowance
e.
a sales contest; a buying allowance
137. Personal selling is generally the most expensive element in the promotion mix.
a.
True
b.
False
138. The primary goals of personal selling are finding prospects, convincing prospects to buy, and keeping customers
satisfied.
a.
True
b.
False
139. Most marketers depend on one-sale customers for long-run survival.
a.
True
b.
False
140. Developing a list of potential customers is called prospecting.
a.
True
b.
False
141. The preapproach is the first step in the personal selling process.
a.
True
b.
False
142. Even though salespeople do not use the exact same sales methods, they do go through the same general selling
process.
a.
True
b.
False
143. In the cold canvass technique, the salesperson calls on potential customers without their prior consent.
a.
True
b.
False
144. Using referrals falls under the approach step in the personal selling process.
a.
True
b.
False
145. The approach step is an important step for gathering information about a buyer's needs and objectives.
a.
True
b.
False
146. Listening on the part of a salesperson is a major component in making a presentation.
a.
True
b.
False
147. One of the best ways to overcome a prospect's objections is to anticipate them and to deal with them before the
prospect has an opportunity to mention them.
a.
True
b.
False
148. A salesperson should not attempt to close a transaction until he or she has finished the entire presentation.
a.
True
b.
False
149. Closing the sale is not a part of the sales presentation in which hidden objections are discovered.
a.
True
b.
False
150. It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections
that the salesperson cannot overcome.
a.
True
b.
False
151. If possible, the salesperson should handle objections only when they arise.
a.
True
b.
False
152. Following up involves listening to a customer's response after finishing the presentation and overcoming those
objections.
a.
True
b.
False
153. Order getters are sometimes called creative sellers.
a.
True
b.
False
154. A single salesperson may perform the functions of order getting, order taking, and support.
a.
True
b.
False
155. Current customers are sources of leads for finding prospective customers.
a.
True
b.
False
156. Locating prospects, educating customers, and building goodwill are functions performed by support personnel.
a.
True
b.
False
