Deck 20: Consumer Sales Promotion: Premiums and Other Promotions

Question 1

Price-offs cannot reverse a downward sales trend.

Answer 1

True

Question 2

Phone cards are a type of premium offer.

Answer 2

True

Question 3

Price-off promotions are effective when the marketer's objective is to reward present brand users.

Answer 3

True

Question 4

A rebate is the practice where manufacturers give cash discounts or reimbursements to consumers who submit proofs of purchase.

Question 5

No type of premium offer can serve to enhance a brand's image.

Question 6

Retailers do not like when manufacturers use near-pack premiums.

Question 7

Price-off promotions are also called price perks.

Question 8

Bonus packs are extra quantities of a product that a company gives to consumers at the regular price.

Question 9

Price-off labels may be used on new brands.

Question 10

Research has shown that the perceived value of a premium item depends on the value of the brand that is offering the gift.

Question 11

Mail-in offer premiums can be used to encourage repeat-purchase behavior.

Question 12

Free-with-purchase premiums are primarily designed to generate repeat purchases.

Question 13

A greater percentage of consumers take advantage of free mail-in offer premiums than any other type of premium offer.

Question 14

Retailers like price-off promotions.

Question 15

The Federal Trade Commission states that there must be a hiatus period of at least 90 days between price-off label promotions on any given brand size.

Question 16

Premiums are articles of merchandise or services offered by manufacturers to induce action on the part of the sales force,trade representatives,or consumers.

Question 17

Self-liquidating offers usually require that the consumer mail in a stipulated number of proofs-of-purchase,along with sufficient money to cover the manufacturer's purchasing,handling,and mailing costs of the premium item.

Question 18

Bonus packs are intended to encourage trial from consumers.

Question 19

Bonus packs are sometimes used as an alternative to price-off deals.

Question 20

Promotional games are capable of creating excitement,stimulating brand interest,and reinforcing brand loyalty.

Question 21

When evaluating promotions,efficiency represents a promotion's cost-per-thousand.

Question 22

Which of the following is NOT a type of consumer-oriented promotion?

A) allowances
B) price-off promotion
C) bonus packs
D) premiums
E) continuity programs

Question 23

The use of two or more sales promotion techniques in combination with one another is called an overlay.

Question 24

Identifying the objectives is the first step in evaluating sales promotion ideas.

Question 25

Which type of consumer promotion offers consumers a delayed reward with the objective of reinforcing a brand's image?

A) contest
B) mail-in offer
C) continuity programs
D) price-offs
E) bonus packs

Question 26

Contests and sweepstakes are used primarily to enhance a brand's image.

Question 27

Rebates are typically redeemed at the retail checkout.

Question 28

Tie-in promotions are cost-effective because the cost is shared among multiple brands.

Question 29

The issue surrounding evaluating promotions is whether or not to even evaluate promotions.

Question 30

Buick ran a contest that provided entrants with the opportunity to win a new Buick Lucerne.The ultimate purpose of the contest was to encourage people to visit Buick dealerships.Of the more than 500,000 entrants to the contest,3,000 agreed to take a test drive.This promotion generated a large number of potential Buick purchasers and also contributed to Buick's large and expanding _____.

A) brand image
B) geographic reach
C) online brand community
D) new driver segment
E) database

Question 31

Rebate fraud can be committed by manufacturers,retailers,and consumers.

Question 32

Compared with many other sales-promotion techniques,sweepstakes are relatively expensive.

Question 33

Continuity promotions are referred to as loyalty programs.

Question 34

The major objective of continuity promotions is to enhance the image of the brand.

Question 35

_____ are articles of merchandise or services offered by manufacturers to induce action on the part of the sales force,trade representatives,or consumers.

A) Coupons
B) Rebates
C) Price-offs
D) Premiums
E) Add-ons

Question 36

Retailers also design promotions for their present and prospective customers.

Question 37

Which type of consumer promotion offers consumers an immediate reward with the objective of encouraging repeat purchases?

A) samples
B) phone cards
C) continuity programs
D) self-liquidating offers
E) bonus packs

Question 38

One drawback for manufacturers offering rebates is that many consumers never bother to redeem them.

Question 39

Contests generate greater response than sweepstakes.

Question 40

Proofs of purchase cannot be required as a condition for entry in a contest or sweepstake.

Question 41

_____ premiums are less expensive because additional packaging is not required.

A) Near-pack
B) Bonus-pack
C) On-pack
D) In-pack
E) Add-on

Question 42

For which type of premium do consumers receive a free item from the sponsoring manufacturer in return for submitting a required number of proofs of purchase?

A) free-with-purchase premium
B) mail-in offer
C) in-pack premium
D) near-pack premium
E) self-liquidating offer

Question 43

Free-with-purchase premiums are also called _____.

A) self-liquidating offers
B) mail-in offers
C) free-gift-with-purchase premiums
D) bonus packs
E) bonus premiums

Question 44

_____ entail a reduction in a brand's regular price and are clearly labeled as such on the package.

A) Bonus packs
B) Price-off promotions
C) Premiums
D) Rebates
E) Coupons

Question 45

Price-off promotions are effective when the marketer's objective is to _____.

A) reward present brand users
B) get consumers to purchase larger quantities of the brand than they normally would
C) establish a repeat purchase pattern after an initial trial
D) provide the sales force with an incentive to obtain retailer support
E) All of these are correct.

Question 46

Chick-fil-A's kids' meals often have games on the bag that the meal comes in.The games on the bag is an example of a(n)_____.

A) self-liquidating offer
B) on-pack premium
C) near-pack premium
D) mail-in offer
E) game

Question 47

The Buy X,Get 1 Free form of premium represents an immediate reward to consumers,and,for manufacturers,this type of premium serves the primary purpose of _____.

A) reinforcing brand image
B) creating long-term relationships with customers
C) enhancing advertising efficiency
D) rewarding a brand's loyal customers or encouraging trial
E) reinforcing other marketing communications messages

Question 48

Which of the following is NOT a type of premium?

A) free-with-purchase premium
B) self-liquidating offer
C) in-pack premium
D) mail-in offer
E) add-on premium

Question 49

Phone cards are attractive promotions to managers because they _____.

A) are perceived as useful by consumers
B) provide an inexpensive promotional tool
C) are lightweight and easy to mail
D) are useful for collecting consumer information
E) All of these are correct.

Question 50

Which type of premiums require the consumer to mail in a stipulated number of proofs of purchase along with sufficient money to cover the manufacturer's purchasing,handling,and mailing costs of the premium item?

A) free-with-purchase premium
B) mail-in offer
C) self-liquidating offer
D) add-on premium
E) contingency premium

Question 51

The toy inside of a McDonald's happy meal is an example of a(n)_____.

A) add-on promotion
B) self-liquidating offer
C) in-pack premium
D) hedonic premium
E) bonus pack

Question 52

To increase sales of Mountain Pure bottled water,the company is considering using a price-off offer.Which of the following would NOT represent a reasonable objective for using this form of sales promotion?

A) The company wants to reward present users for their past brand allegiance.
B) The company wants to load consumers.
C) The company wants to establish repeat purchase.
D) The company wants to ensure that promotional dollars do in fact reach consumers.
E) None of these are correct.

Question 53

Managers must be circumspect in choosing premium items that are compatible with the _____ and appropriate for the _____.

A) retail image; shelf space available
B) firm's product line; retail outlet
C) brand's image; target market
D) competitive premiums; firm's image
E) economic conditions; cultural norms

Question 54

Self-liquidating premiums are paid for by the _____.

A) manufacturer
B) wholesaler
C) retailer
D) consumer
E) sales force

Question 55

A manufacturer of soap will mail you a beach towel if you mail them a proof of purchase and $7.00.This is an example of a(n)_____.

A) self-liquidating offer
B) reimbursed premium
C) on-pack premium
D) out-of-store premium
E) in-pack premium

Question 56

Every year,retailers set up elaborate displays for Christmas merchandise.One retailer set up a display with several children's books for Christmas.One book offered a free ornament with the purchase of the book,and the ornaments were in a bin next to the book display.Consumers purchasing the book could also take an ornament.This is an example of a(n)_____.

A) self-liquidating offer
B) on-pack premium
C) in-pack premium
D) near-pack premium
E) add-on premium

Question 57

Laurie received a free Hawaiian shirt from Tropicana Orange Juice by sending in ten proofs of purchases.What type of premium is this?

A) free-with-purchase premium
B) in-pack premium
C) on-pack premium
D) wearable premium
E) mail-in offer

Question 58

Larkin Manufacturing wishes to reinforce their brand's image.It would be most effective for them to use _____.

A) rebates
B) sampling
C) price-off deals
D) continuity programs
E) self-liquidating offers

Question 59

To promote sales and increase consumer awareness of good eating habits,a well-know cereal manufacturer included on the package an offer for a book entitled Good Eating and Lifetime Happiness.This book (a $9 value)could be obtained in exchange for only one proof-of-purchase along with $4.95 shipping and handling.What type of promotional tool is the company using?

A) out-of store coupon
B) basic-offer premium
C) on-pack premium
D) self-liquidating offer
E) rebate

Question 60

Which type of premium can build sales volume in stores that put up displays and participate fully?

A) near-pack premium
B) self-liquidating offer
C) mail-in offer
D) add-on premium
E) continuity premium

Question 61

Listerine mouth wash provided customers with a free 250ml bottle along with the purchase of a 1.7L bottle.This promotional offer would be categorized as a(n)_____.

A) near-pack premium
B) bonus pack
C) on-pack premium
D) price-off promotion
E) add-on bonus

Question 62

Which of the following can participate in rebate fraud?

A) consumers
B) retailers
C) manufacturers
D) government
E) a, b, and c

Question 63

Online sweepstakes and contests (along with online games)appeal to consumers and also further the interest of brands by ______.

A) enabling the expansion of a brand's opt-in e-mail database
B) building consumer interaction with the brand
C) creating awareness
D) a and b only
E) a, b, and c

Question 64

Every year,Dana enters the Pillsbury Bake-off.She submits a recipe that uses at least one Pillsbury baking product to a panel of judges.One hundred participants are invited to compete further by actually preparing their recipes for judges so that a grand prize winner can be selected,winning one million dollars.This is an example of which type of promotion?

A) sweepstake
B) game
C) contest
D) lottery
E) cooperative promotion

Question 65

For which type of promotion must participants act according to the specific rules and may or may not be required to submit proofs of purchase?

A) tie-in promotions
B) sweepstakes
C) cooperative promotions
D) contest
E) self-liquidating promotion

Question 66

Bonus packs provide consumers with a(n)_____ reward and,for manufacturers,primarily serve a _____ objective.

A) immediate; repeat purchase
B) immediate; generating trial
C) immediate, reinforcing brand image
D) delayed; repeat purchase
E) delayed; generating trial

Question 67

The major reason manufacturers are using rebates more now than ever is that many consumers never bother to redeem them.Thus,when using rebates,manufacturers get the best of both worlds-they stimulate consumer purchases of rebated items without having to pay out the rebated amount because most consumers do not undertake the effort to mail in rebate forms.Hence,rebates can be thought of as a form of _____.

A) premium
B) phantom discount
C) coupon
D) overlay promotion
E) bounce-back allowance

Question 68

Sun Cosmetics is sponsoring a promotional campaign in which consumers who send in an entry form have the chance to win a trip to Hawaii or hundreds of lesser gifts.What type of promotional tool is being used here?

A) tie-in promotion
B) sweepstakes
C) cooperative coupon
D) contest
E) mail-in offer

Question 69

Which of the following is a disadvantage of using price-offs?

A) cannot reverse a downward sales trend
B) cannot produce a significant number of new users
C) cannot attract as many trial users as samples, coupons, or premium packs
D) retailers often dislike price-offs
E) All of these are correct.

Question 70

Compared with many other sales-promotion techniques,sweepstakes are _____.

A) relatively inexpensive
B) simple to execute
C) able to reinforce a brand's image
D) able to reach specific groups
E) All of these are correct.

Question 71

Which of the following are sometimes used as an alternative to price-off deals when price-off deals are either overused or resisted by the trade?

A) coupons
B) rebates
C) add-ons
D) premiums
E) bonus packs

Question 72

Which of the following is FALSE regarding rebates?

A) Rebates are also called refunds.
B) Automobile companies are among the major users of rebate programs.
C) Many consumers never bother to redeem them.
D) Rebates offer consumers immediate rewards.
E) Rebate fraud occurs by manufacturers, retailers, and consumers themselves.

Question 73

As promotion manager for a candy bar manufacturer,your objective is to create a sales promotion that will provide consumers with an immediate reward while achieving a repeat purchase objective for your company.Which of the following would effectively serve these purposes?

A) mail-in offer
B) contest
C) sweepstakes
D) bonus pack
E) sample

Question 74

The Federal Trade Commission states that _____.

A) there is a limit of six price-off label promotions per year per brand size
B) there must be a hiatus period of at least 60 days between price-off label promotions on any given brand size
C) price-off labels may only be used on brands already in distribution with established retail prices
D) no more than 30 percent of a brand's volume over a 12-month period may be generated from price-off label promotions
E) the retailer must provide display materials to announce the price-off label offer

Question 75

_____ are extra quantities of a product that a company gives to consumers at the regular price.

A) Price-offs
B) Premiums
C) Bonus packs
D) Add-ons
E) Rebates

Question 76

Lisa purchased socks at a department store and noticed a sign that stated she could get $5.00 back by mail if she purchased five pairs and mailed in a form along with the proofs of purchases and a dated cash register receipt.This is an example of which type of promotion?

A) coupon
B) rebate
C) premium
D) bonus pack
E) price-off

Question 77

The ABC Company usually sells a package of ten razor blades for $9.00.When the company offers a package of twelve razor blades for $9.00,they are offering a _____.

A) self-liquidating offer
B) bonus pack
C) price-off promotion
D) rebate
E) sample

Question 78

Cash discounts given to consumers who submit proofs of purchase are known as _____.

A) coupons
B) premiums
C) rebates
D) price-offs
E) bonus packs

Question 79

Games provide consumers with a(n)_____ reward and,for marketers,serve primarily to _____.

A) delayed; encourage trial by nonusers
B) delayed; encourage repeat purchasing
C) delayed; reinforce a brand's image
D) immediate; encourage trial by nonusers
E) immediate; encourage repeat purchasing

Question 80

For which type of promotion are winners determined purely on the basis of chance?

A) games
B) contests
C) sweepstakes
D) games and contests
E) games, contests, and sweepstakes