Deck 19: Consumer Sales Promotion: Sampling and Couponing

Question 1

The first step in calculating the return on investment for a sampling investment is to calculate the total cost of sampling.

Answer 1

True

Question 2

Consumers who use sales promotions receive various utilitarian and hedonic benefits.

Answer 2

True

Question 3

Promotions are capable of accomplishing more than a single objective.

Answer 3

True

Question 4

In general,consumers are more responsive to delayed rewards because they are usually larger than immediate rewards.

Question 5

In-store is the least used form of sampling.

Question 6

Sophisticated brand managers simply reach into a "bag" and pick out any promotional tool because the multiple forms of promotions are completely interchangeable.

Question 7

Coupons are the premier sales-promotion device for generating trial usage.

Question 8

Promotions are used because they accomplish goals that advertising by itself cannot.

Question 9

Sampling is effective because it provides consumers with an opportunity to personally experience a new brand.

Question 10

Sampling is useful for reinforcing brand image by offering an immediate reward to consumers.

Question 11

While samples offer consumers an immediate reward,all types of coupons merely offer delayed rewards.

Question 12

The vast majority of manufacturers use sampling as part of their marcom programs for purposes of generating trial or retrial and leveraging trade support.

Question 13

Promotion alone can create a successful product.

Question 14

Manufacturers use consumer-oriented sales promotions also to leverage trade support.

Question 15

Brand managers are increasingly distributing samples online.

Question 16

All promotion techniques provide consumers with rewards.

Question 17

Whereas sales promotion makes consumers aware of your brand and promotes a positive image,advertising serves to consummate the transaction.

Question 18

The three general categories of promotion objectives directed at influencing consumer behavior are generating trial purchases,encouraging repeat purchases,and reinforcing brand images.

Question 19

Sampling should be used when a new or improved brand is demonstrably superior to other brands.

Question 20

The overarching objective of consumer-oriented promotions is to promote increased sales.

Question 21

More coupons are distributed in the United States than elsewhere.

Question 22

Advertising makes consumers aware of your brand and promotes a positive image; _____ serve(s)to consummate the transaction.

A) promotions
B) brand management
C) customer attitudes
D) customer behavior
E) demographics

Question 23

Which of the following is NOT a general category of objectives for using promotions?

A) generating trial
B) encouraging repeat purchasing
C) reinforcing brand image
D) encouraging utilitarian attitudes
E) All of these are correct.

Question 24

Retailers typically hire another company,called a clearinghouse,to sort and redeem coupons.

Question 25

Only a small amount of couponing occurs in France.

Question 26

Critics of couponing claim that coupons are wasteful and may actually increase prices of consumer goods.

Question 27

The use of coupons is restricted to packaged goods.

Question 28

The practice of crossruffing occurs when a coupon for one brand is promoted by another brand.

Question 29

All promotion techniques provide consumers with _____ that encourage(s)certain forms of behavior.

A) rewards
B) monetary savings
C) a need for stimulation
D) reinforcement of hedonistic attitudes
E) reinforcement of utilitarian attitudes

Question 30

Consumer promotions are capable of achieving which of the following sales-influencing objective?

A) gaining trade support for inventorying increased quantities of a brand
B) entering new markets with established brands
C) promoting trial among consumers
D) enhancing a brand's image
E) All of these are correct.

Question 31

Since there are no promotion agencies per se,advertising agencies work with brand managers in formulating promotion strategies and implementing tactical programs.

Question 32

A coupon is a promotional device that rewards consumers for purchasing the coupon-offering brand by providing either cents-off savings or free merchandise.

Question 33

The major advantage of direct-mailed coupons is that they are relatively inexpensive compared with other coupon-distribution methods.

Question 34

Instantly redeemable coupons (IRCs)are the dominant form of couponing.

Question 35

In-store sampling often fails to reach sufficient numbers of consumers to justify its expense.

Question 36

_____ are the starting points for all consumer promotions decisions.

A) Budget considerations and consumer research
B) Message and media choices
C) Product or service features
D) Price and distribution strategies
E) Target marketing and brand positioning

Question 37

Freestanding inserts account for the majority of all coupons distributed in the United States.

Question 38

The major source of coupon misredemption is large-scale professional misredeemers.

Question 39

A number of Internet sites now distribute coupons,and 25 percent of all coupons are distributed through this medium.

Question 40

The Internet has become an increasingly important venue for conducting promotions.

Question 41

Which type of consumer-oriented promotion is appropriate for reinforcing a brand's image while delivering an immediate reward?

A) sampling
B) scanner-delivered coupons
C) continuity programs
D) sweepstakes and contests
E) None of these are correct.

Question 42

A tool that can be used to assess whether an investment in a sampling program is cost justified is _____.

A) breakeven analysis
B) converter assessment
C) sampling assessment
D) return on investment
E) sampling profit analysis

Question 43

_____ includes any method used to deliver an actual- or trial-sized product to consumers.

A) Couponing
B) Testing
C) Premiums
D) Test marketing
E) Sampling

Question 44

The premier sales promotion device for generating trial usage is _____.

A) coupons
B) premiums
C) sampling
D) contests
E) price-offs

Question 45

Generally speaking,consumers are more responsive to _____ rewards.

A) immediate
B) delayed
C) hedonistic
D) utilitarian
E) monetary

Question 46

Sampling to college students at the beginning of a new school year or to new parents in hospital maternity wards are examples of _____ sampling.

A) high-traffic location
B) brand-image
C) life-cycle
D) change-point
E) hedonic

Question 47

The use of _____ would be suggested for manufacturers who wish to generate consumer trial but delay the reward.

A) phone cards
B) scanner-delivered coupons
C) self-liquidating premiums
D) price-offs
E) rebates

Question 48

Which of the following statements is FALSE?

A) Promotions are capable of accomplishing more than a single objective.
B) Specific promotion techniques achieve different objectives depending on the specific form of delivery vehicle.
C) Sales promotion tools may support advertising efforts by reinforcing a brand's image.
D) Consumer-oriented promotions cannot leverage trade support.
E) All consumer-oriented promotion techniques provide consumers with rewards.

Question 49

It is estimated that online sampling costs are _____ sampling in stores or at special events.

A) three times greater than
B) two times greater than
C) three times less than
D) two times less than
E) the same as

Question 50

Julie is on a tight budget and usually purchases store brands of products.However,she purchased a higher quality national brand of shampoo with a coupon that reduced the price enough for her to be able to purchase it.Which type of reward did Julie obtain from using the coupon?

A) delayed
B) informational
C) utilitarian
D) hedonic
E) rational

Question 51

Maria purchased a new brand of frozen waffles that had a high value coupon on the package.She had to cut the coupon out to use it on her next purchase of these waffles.Which type of reward did Maria get?

A) delayed
B) hedonic
C) conditional
D) unconditional
E) immediate

Question 52

The most frequent form of sampling is _____.

A) in-store
B) in-pack
C) door-to-door
D) direct mail
E) on-pack

Question 53

A hair product company wishing to reach teenage males made a deal with tuxedo rental shops to distribute gift packages of product samples to each male who picked up a rental for the prom.The hair product company was using _____.

A) targeted sampling
B) exclusive sampling
C) creative distribution methods
D) mass distribution
E) demand sampling

Question 54

Consumers who take part in sales promotions receive utilitarian,or functional,benefits.Which of the following is NOT a functional benefit?

A) achieving a need for stimulation
B) reducing search and decision costs
C) obtaining improved product quality
D) obtaining monetary savings
E) All of these are correct.

Question 55

Every time McDonald's comes out with their Monopoly game,Nakita loves to participate.Even though she knows her chances of winning a million dollars are slim,she still finds it entertaining and fun.Which type of reward is Nakita receiving by participating in this sales promotion activity?

A) hedonistic
B) utilitarian
C) emotional
D) rational
E) monetary

Question 56

Which of the following is a step in calculating the ROI for a sampling investment?

A) define the objectives
B) review the category
C) calculate the profit per unit
D) calculate the price elasticity
E) calculate the volume necessary to breakeven

Question 57

Consumers who take part in sales promotions receive hedonic benefits.Which of the following is NOT a hedonic benefit?

A) obtaining monetary savings
B) accomplishing a sense of being a wise shopper
C) obtaining entertainment value
D) achieving a need for stimulation
E) All of these are correct.

Question 58

Which of the following is a hedonic benefit consumers obtain when taking advantage of sales promotion offers?

A) obtaining monetary savings
B) reducing search and decision costs
C) obtaining improved product quality
D) accomplishing a sense of being a wise shopper
E) All of these are correct.

Question 59

Carl grabbed a bag of chips and salsa at a convenience store and noticed a coupon attached to the bag of chips allowing him to get 50 cents off the purchase price.Which type of reward did Carl get?

A) delayed
B) hedonic
C) unconditional
D) informational
E) immediate

Question 60

Which of the following is a distribution method used to deliver samples?

A) direct mail
B) newspapers and magazines
C) in-store
D) high-traffic locations and events
E) All of these are correct.

Question 61

Val-Pak Direct Marketing Systems _____.

A) measures the effectiveness of newspaper advertisements
B) manufactures point-of-purchase displays
C) distributes free standing insert coupons
D) is an advertising agency
E) is a cooperative program for distributing coupons via direct mail

Question 62

Most consumers revert to their pre-coupon brand choice _____ after redeeming a competitive brand's coupon.

A) immediately
B) within two weeks
C) within three weeks
D) within one month
E) within two months

Question 63

Which circumstance is NOT ideal for using sampling to encourage trial usage of a new or improved brand?

A) The brand is either demonstrably superior to other brands or has distinct relative advantages.
B) The brand packaging is hard to distinguish from its competition.
C) Promotional budgets can afford to generate consumer trial quickly.
D) The product concept is so innovative that it is difficult to communicate by advertising alone.
E) All of these are correct.

Question 64

The percentage of all distributed coupons that are taken to stores for price discounts is known as the _____.

A) redemption rate
B) conversion rate
C) turnover rate
D) discount rate
E) return on investment

Question 65

Surveys indicate that _____ American consumers use coupons at least on occasion.

A) very few
B) virtually all
C) approximately half of
D) less than 25 percent of
E) approximately 75 percent of

Question 66

The major method for distributing coupons in the United States is _____.

A) free standing inserts
B) scanner-delivered
C) mail-delivered
D) media-delivered
E) in-pack

Question 67

The government in _____ limits the face value of coupons to 1 percent of the product's value.

A) China
B) Finland
C) Egypt
D) France
E) Germany

Question 68

Which of the following is a problem with the use of sampling?

A) consumers are not receptive to them
B) not effective in generating trial
C) in-store sampling often fails to reach sufficient numbers of consumers to justify its expense
D) inability to target effectively
E) limited creative possibilities

Question 69

Which of the following is a cost related to couponing?

A) face value
B) distribution and postage charges
C) handling fee
D) redemption cost
E) All of these are correct.

Question 70

The amount paid to the consumer when he or she redeems the coupon at a retail checkout along with a purchase of the brand for which the coupon is offered is known as the _____.

A) value proposition
B) redemption rate
C) face value
D) discount rate
E) redemption cost

Question 71

Which type of coupons are peelable from the package and are designed to be removed by the consumer and redeemed at checkout along with a purchase of the couponed brand?

A) instantly redeemable coupons
B) shelf-delivered coupons
C) scanner-delivered coupons
D) FSI coupons
E) online coupons

Question 72

A problem with in- or on-package sampling is that it _____.

A) does not reach the best potential customers
B) is more expensive than other sampling methods
C) excludes consumers who do not buy the carrying brand
D) is not liked by most retailers
E) has the lowest retrial rate

Question 73

Which of the following is a point-of-purchase form of coupon?

A) FSI coupon
B) instantly redeemable coupon
C) in-pack coupon
D) on-pack coupon
E) online coupon

Question 74

Which of the following is a major form of couponing activity?

A) point-of-purchase coupons
B) mail- and media-delivered coupons
C) in- and on-pack coupons
D) online coupons
E) All of these are correct.

Question 75

The second step for calculating the return on investment for a sampling is _____.

A) defining objectives
B) determining the total cost for the sampling
C) calculating the number of converters needed for the sampling program to break even
D) conducting a competitive analysis
E) calculating the profit per unit

Question 76

Only a small amount of couponing occurs in France because ____.

A) the government limits the face value of coupons to 1 percent of the product's value
B) the few chains that control the retail grocery market generally oppose couponing
C) the people are generally opposed to the idea of couponing
D) everyday low pricing is very widespread
E) prices are already reduced due to fierce competition

Question 77

The first step for calculating the return on investment for a sampling is _____.

A) defining objectives
B) determining the total cost for the sampling
C) calculating the number of converters needed for the sampling program to break even
D) conducting a competitive analysis
E) calculating the profit per unit

Question 78

Kenner,Inc.manufactures paper products and has decided to offer coupons in free standing inserts.What company could distribute these coupons for this manufacturer?

A) Simmons Market Research Bureau
B) Arbitron
C) Statistical Research, Inc.
D) Valassis Inserts
E) Val-Pak Inserts

Question 79

A promotional device that rewards consumers for purchasing the brand by providing either cents-off savings or free merchandise is known as a _____.

A) sample
B) coupon
C) voucher
D) slip
E) redeemer

Question 80

Programs in which a service distributes coupons for a single company's multiple brands or brands from multiple companies are known as _____.

A) co-marketing coupon programs
B) synergistic coupon programs
C) complementary coupon programs
D) cooperative coupon programs
E) multiple coupon programs