Deck 19: Consumer Sales Promotion: Sampling and Couponing

Question 1

Social (group)coupons are a type of promotion that offers immediate consumer reward and encourages repeat purchases.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Promotions are capable of accomplishing more than a single objective.

Question 5

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 6

In-store is the least used form of sampling.

Question 7

Consumers who respond to sales promotions receive various utilitarian and hedonic benefits.

Question 8

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

Question 9

Manufacturers use sampling in their marcom programs in part to leverage trade support.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

All promotion techniques provide consumers with rewards.

Question 17

Brand managers are increasingly distributing samples online.

Question 18

One objective that can be achieved through consumer promotions is rewarding present customers for continuing to purchase the brand.

Question 19

In- or on-pack coupons would be a good promotion technique if the goal is to offer immediate reward and generate trial purchases.

Question 20

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

Question 21

Only a small amount of couponing occurs in France.

Question 22

_____ 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 23

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

Question 24

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

Question 25

The use of coupons is restricted to packaged goods.

Question 26

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 27

Which statement best summarizes the way in which promotion agencies a valuable resource for brand managers? 

A) They are able to plan promotions and carry through their implementation. 
B) They are able to create advertising messages and buy advertising media. 
C) They are able to implement the promotion strategies planned by ad agencies. 
D) They are able to plan promotions to be carried out by ad agencies. 
E) They are best suited for implementing introductory advertising campaigns.

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

Mail- and media-delivered coupons delay reward but they also generate trial purchase behavior.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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 39

What type of promotions might be employed by promotion agencies that emphasize online promotions? 

A) coupons 
B) sweepstakes offers 
C) free sample offerings 
D) promotional games 
E) All of these are correct.

Question 40

More coupons are distributed in the United States than elsewhere.

Question 41

In the coupon redemption process,coupons go from the _______ to the retailer.

A) consumer 
B) manufacturer 
C) clearinghouse 
D) promoter 
E) All of these are correct.

Question 42

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 43

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 44

After calculating the profit per unit,what is the next step in calculating the ROI for a sampling investment? 

A) calculate the price elasticity 
B) determine the total cost of sampling 
C) conduct a sampling assessment 
D) calculate the number of converters needed to break even 
E) determine the effectiveness of the sampling

Question 45

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 46

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 47

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 48

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 49

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 50

What is the final step in calculating the ROI for a sampling investment? 

A) determine the total cost of sampling 
B) determine the cost of the sample goods 
C) determine the effectiveness of the sampling 
D) calculate the profit per unit 
E) calculate the number of converters needed to break even

Question 51

_____ 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 52

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) hedonic 
B) utilitarian 
C) emotional 
D) rational 
E) monetary

Question 53

Generally speaking,consumers are more responsive to _____ rewards.

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

Question 54

Which type of consumer-oriented promotion would you use if the objective was to reinforce the brand's image,even though it meant delivering a delayed reward? 

A) sampling 
B) scanner-delivered coupons 
C) continuity programs 
D) sweepstakes and contests 
E) games

Question 55

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 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 break even

Question 57

When conducting an ROI,a sampling would be considered successful if ______.

A) The break-even rate exceeds the conversion rate with gains of 13 percent. 
B) The break-even rate exceeds the conversion rate with gains of 8 percent. 
C) The conversion rate exceeds the break-even rate with gains of 8percent. 
D) The conversion rate exceeds the break-even rate with gains of 13 percent. 
E) The break-even rate matches the conversion rate.

Question 58

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 59

What sampling problem is most closely associated with sampling through mail distribution? 

A) pilferage 
B) failure to reach sufficient numbers of consumers 
C) misuse 
D) exclusion of consumers who do not buy the carrying brand 
E) wasted distribution

Question 60

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 61

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

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

Question 62

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 63

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 64

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

Question 65

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 66

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 67

A manufacturer who want to encourage repeat purchases and offer the consumer an immediate reward might consider what type of promotion? 

A) samples 
B) bonus packs 
C) shelf-delivered coupons 
D) online coupons 
E) free-with purchase premiums

Question 68

Which of the following is a problem with the use of in-store sampling? 

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

Question 69

It is now estimated that fraudulent coupon redemption is,on average,close to _____ percent.

A) 3 or 4 
B) 7 
C) 20 to 25 
D) 40 
E) 50

Question 70

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 71

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 72

What electronic check-out coupon program allows marketers to deliver coupons only to consumers who satisfy the manufacturer's specific targeting requirements? 

A) Checkout Direct 
B) Digit Marketing 
C) Checkout Coupon 
D) Checkout IRC 
E) Electronic Coupon

Question 73

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 74

Valpak Direct Marketing Systems _____.

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

Question 75

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 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

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) over 75 percent of

Question 78

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 79

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

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

Question 80

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