Question 1

The quality and safety of a product could be jeopardized as a result of diverting.

Accepted Answer

A) True 
 B)False

Question 2

Pay-for-performance programs and the efficient consumer response (ECR)initiative have similar outcome objectives.

Accepted Answer

A) True 
 B)False

Question 3

The effects of promoting higher- and lower-quality brands are symmetric.

Accepted Answer

A) True 
 B)False

Question 4

Increases in sales volume necessarily lead to increased profits.

Accepted Answer

A) True 
 B)False

Question 5

A possible negative consequence of diverting is _____.

Accepted Answer

A)  product tampering 
B)  product quality might suffer 
C)  the cost of an exit-fee 
D)  product tampering, and that the quality of the product might suffer. 
E)  None of these are correct. 
A)  product tampering 
B)  product quality might suffer 
C)  the cost of an exit-fee 
D)  product tampering, and that the quality of the product might suffer. 
E)  None of these are correct.

Question 6

Higher market share brands are more deal elastic.

Accepted Answer

A) True 
 B)False

Question 7

Promotional and advertising activity that a manufacturer customizes to specific retail accounts is known as _____.

Accepted Answer

A)  account-specific marketing 
B)  forwarding 
C)  diverting 
D)  cooperative advertising 
E)  vendor support programs 
A)  account-specific marketing 
B)  forwarding 
C)  diverting 
D)  cooperative advertising 
E)  vendor support programs

Question 8

In a deslotting allowance agreement,the risk of a new brand introduction is transferred from the manufacturer to the retailer.

Accepted Answer

A) True 
 B)False

Question 9

The combined effects of advertising and display interact _____ in regards to a dealt brand's retail sales.

Accepted Answer

A)  negatively 
B)  positively 
C)  minimally 
D)  inelastically 
E)  elastically 
A)  negatively 
B)  positively 
C)  minimally 
D)  inelastically 
E)  elastically

Question 10

When deals are frequently offered,the consumer's internal reference price is lowered.

Accepted Answer

A) True 
 B)False

Question 11

Retailers tend to prefer pay-for-performance programs more so than do manufacturers.

Accepted Answer

A) True 
 B)False

Question 12

Slotting allowances are a mechanism used by manufacturers to exploit the competition among retailers.

Accepted Answer

A) True 
 B)False

Question 13

In recent years,the balance of power has been shifting from the retailer to the manufacturer.

Accepted Answer

A) True 
 B)False

Question 14

Explain forward buying and diverting.Who benefits or loses from these practices?

Accepted Answer

Forward buying occurs when retailers pur

Question 15

Retailers are able to charge slotting allowances and get away with it because ____.

Accepted Answer

A)  channel power has shifted toward retailers 
B)  manufactures are introducing thousands of new products each year and some are trivial variants of existing brands 
C)  many manufacturers compete for limited retail shelf space 
D)  retailers use slotting allowances to augment thin retail margins 
E)  All of these are correct. 
A)  channel power has shifted toward retailers 
B)  manufactures are introducing thousands of new products each year and some are trivial variants of existing brands 
C)  many manufacturers compete for limited retail shelf space 
D)  retailers use slotting allowances to augment thin retail margins 
E)  All of these are correct.

Question 16

The Federal Trade Commission (FTC)recently passed a ruling that prohibits the use of slotting fees in the marketing of food products.

Accepted Answer

A) True 
 B)False

Question 17

Researchers have determined that loading consumers,by offering deal-oriented promotions,does increase consumers' product usage,especially when _____.

Accepted Answer

A)  usage-related thoughts about a product are vivid in a consumer's memory 
B)  the sales promotion has been used for a considerable amount of time 
C)  competitive products are not on deal 
D)  the promotion is for a durable good 
E)  the promotion includes a contest 
A)  usage-related thoughts about a product are vivid in a consumer's memory 
B)  the sales promotion has been used for a considerable amount of time 
C)  competitive products are not on deal 
D)  the promotion is for a durable good 
E)  the promotion includes a contest

Question 18

Diverting occurs when products intended for foreign markets are diverted back into a domestic market.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding forward buying?

Accepted Answer

A)  Savings from forward buying often are passed on to consumers. 
B)  Forward buying reduces distribution costs. 
C)  Manufacturers experience reduced margins. 
D)  Forward buying occurs when retailers by abnormally large quantities at the deal price and selling off the excess in other geographical areas. 
E)  Manufacturers could avoid the forward buying problem by placing brands on national deal only. 
A)  Savings from forward buying often are passed on to consumers. 
B)  Forward buying reduces distribution costs. 
C)  Manufacturers experience reduced margins. 
D)  Forward buying occurs when retailers by abnormally large quantities at the deal price and selling off the excess in other geographical areas. 
E)  Manufacturers could avoid the forward buying problem by placing brands on national deal only.

Question 20

A major international study conducted in Germany,Japan,the United Kingdom,and the United States found that price-related promotions have _____ impact on a brand's long-term sales or on consumers' repeat buying loyalty.

Accepted Answer

A)  a large positive 
B)  a slight positive 
C)  virtually no 
D)  a slight negative 
E)  a large negative 
A)  a large positive 
B)  a slight positive 
C)  virtually no 
D)  a slight negative 
E)  a large negative

Exam 18: Sales Promotion Overview and the Role of Trade Promotion

The quality and safety of a product could be jeopardized as a result of diverting.

Pay-for-performance programs and the efficient consumer response (ECR)initiative have similar outcome objectives.

The effects of promoting higher- and lower-quality brands are symmetric.

Increases in sales volume necessarily lead to increased profits.

A possible negative consequence of diverting is _____.

Higher market share brands are more deal elastic.

Promotional and advertising activity that a manufacturer customizes to specific retail accounts is known as _____.

In a deslotting allowance agreement,the risk of a new brand introduction is transferred from the manufacturer to the retailer.

The combined effects of advertising and display interact _____ in regards to a dealt brand's retail sales.

When deals are frequently offered,the consumer's internal reference price is lowered.

Retailers tend to prefer pay-for-performance programs more so than do manufacturers.

Slotting allowances are a mechanism used by manufacturers to exploit the competition among retailers.

In recent years,the balance of power has been shifting from the retailer to the manufacturer.

Explain forward buying and diverting.Who benefits or loses from these practices?

Retailers are able to charge slotting allowances and get away with it because ____.

The Federal Trade Commission (FTC)recently passed a ruling that prohibits the use of slotting fees in the marketing of food products.

Researchers have determined that loading consumers,by offering deal-oriented promotions,does increase consumers' product usage,especially when _____.

Diverting occurs when products intended for foreign markets are diverted back into a domestic market.

Which of the following is true regarding forward buying?

A major international study conducted in Germany,Japan,the United Kingdom,and the United States found that price-related promotions have _____ impact on a brand's long-term sales or on consumers' repeat buying loyalty.

An Overview of Integrated Marketing Communications

Enhancing Brand Equity and Accountability

Brand Adoption, Brand Naming, and Intellectual Property Issues

Environmental, Regulatory, and Ethical Issues

Segmentation, Targeting, and Positioning

The Communication Process and Consumer Behavior

The Role of Persuasion in Integrated Marketing Communications

Objective Setting and Budgeting

Overview of Advertising Management

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Advertising Media

Online and Mobile Advertising

Social Media

Direct Marketing and Other Media

Advertising Media: Planning and Analysis

Measuring Ad Message Effectiveness

Consumer Sales Promotion: Sampling and Couponing

Consumer Sales Promotion: Premiums and Other Promotions

Public Relations,Word-of-Mouth Influence,and Sponsorships

Packaging, Point-of-Purchase Communications, and Signage

Personal Selling

Filters