Deck 15: Retail Communication Mix

Question 1

M-commerce is the buying and selling of goods and services through wireless handheld devices.

Answer 1

True
Explanation: Mobile communications are delivered through wireless handheld devices,such as cellular telephones,and m-commerce or mobile commerce involves completing a transaction via the cell phone.

Question 2

A co-op (cooperative)program is a promotional program undertaken by a vendor and a retailer working together.

Answer 2

True
Explanation: A co-op (cooperative)program is a promotional program undertaken by a vendor and a retailer working together.

Question 3

Which of the following is a reason for the decline in the growth of newspaper advertising by retailers?

A) The retailers have begun using other media
B) The increasing cost of developing an advertisement for newspapers
C) The decreasing market penetration of the newspaper industry
D) The time taken to develop an advertisement for newspapers
E) The depleting credibility of newspaper organizations

Answer 3

A
Explanation: Retailing and newspaper advertising grew up together over the past century.But the growth in newspaper advertising by retailers has slowed recently as retailers have begun using other media.

Question 4

Aided recall is the highest level of brand awareness.

Question 5

Spots have relatively large audiences,but they are expensive for local retailers.

Question 6

Retailers are the _____ group of national advertisers in the United States.

A) third-largest
B) second-largest
C) sixth-largest
D) fourth-largest
E) fifth-largest

Question 7

Which of the following is a reason why retailers tend to use magazines for image advertising?

A) Wider target audience
B) Extended shelf life
C) High readership
D) Low cost of advertising
E) High reproduction quality

Question 8

A retailer's magazine advertising campaign builds an image of elegance and high fashion,yet the store's sales promotions emphasize low prices.Because of the inconsistencies,consumers are left confused about the retailer's image and tend to shop elsewhere.What should the store manager do to resolve the problem of inconsistency with the communication mix?

A) The manager should re-train associates to support the image of elegance and fashion.
B) The manager should re-examine the elements of the mix that can be eliminated.
C) The manager should imitate the communication programs of successful competitors.
D) The manager should reduce the prices of the products across all categories.
E) The manager should develop an integrated marketing communication program.

Question 9

What can a retailer do to keep customers from being confused about the retailer's image?

A) Develop an integrated marketing communication program to deliver a consistent message.
B) Standardize pricing across all geographic locations.
C) Change the offerings based on the current fads to stay contemporary.
D) Re-design stores to suit contemporary tastes.
E) Be consistent in competitiveness as it clearly defines top performers in the market.

Question 10

On a blog,an individual blogger or a group of users regularly record their opinions and various topical information on a web page.

Question 11

Which of the following has enabled retailers to personalize their direct mail to all customers?

A) Customer relationship management programs
B) Employee experience management programs
C) Employee feedback management programs
D) Partner relationship management programs
E) Sales force management programs

Question 12

A premium offers an item for free or at a bargain price to reward some type of behavior,such as buying,sampling,or testing.

Question 13

Brand association refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service.

Question 14

_____ are advertisements printed at the retailer's expense and distributed as an insert in the newspaper.

A) Cogprints
B) Preprints
C) Reprints
D) Postprints
E) Eprints

Question 15

_____ entails the placement of announcements and persuasive messages purchased by retailers and other organizations that seek to inform and/or persuade members of a particular target market or audience about their products,services,organizations,or ideas.

A) Market research
B) Coolhunting
C) Advertising
D) Market overhang
E) Journalism

Question 16

Sentiment mining is a process whereby retailers can tap into a variety of online chat formats to collect consumer comments and then analyze these data to identify customers' overall attitudes and preferences for products and advertising campaigns.

Question 17

Which among the following is the largest group of national advertisers in the United States?

A) Real estate industry
B) Retail industry
C) Consumer electronics industry
D) Health care industry
E) Automobile industry

Question 18

The objective-and-task method uses past sales and communication activities to determine the present communication budget.

Question 19

Communication objectives are specific goals related to the retail communication mix's effect on the customer's decision-making process.

Question 20

A freestanding insert (FSI)is also called a(n)_____.

A) preprint
B) cogprint
C) reprint
D) postprint
E) eprint

Question 21

A _____ is "a name,term,design,symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers."

A) product
B) brand
C) deal
D) service
E) logo

Question 22

David visits a supermarket to buy milk and eggs.At the checkout counter,waiting to pay,he impulsively picks up a magazine from one of the display shelves.Which of the following terms best reflects the supermarket's strategy?

A) Rebate
B) Point-of-purchase display
C) Premium
D) Sample
E) Special event

Question 23

Target Field in Minneapolis,Minnesota,"Home of the Twins" baseball team venue is an example of what type of communication method?

A) Coupons
B) Event sponsorship
C) Rebates
D) Premiums
E) Point-of-purchase displays

Question 24

Which of the following is classified as in-store marketing?

A) Coupon
B) Rebate
C) Discount
D) Premium
E) Sample

Question 25

A _____ offers an item for free or at a bargain price to reward some type of behavior,such as buying,sampling,or testing.

A) rebate
B) premium
C) coupon
D) sample
E) cross sale

Question 26

A retailer wants to announce up-to-date and fast changing information to excite customers.Which of the following platforms will best suit the retailer's needs?

A) Facemash
B) Youtube
C) Linkedin
D) Facebook
E) Twitter

Question 27

Which of the following forms of communication is the most expensive?

A) Publicity
B) Salespeople
C) Advertising
D) Magazine
E) Newspaper

Question 28

The Macy's Thanksgiving Day Parade is an example of _____.

A) samples
B) event sponsorship
C) rebates
D) premiums
E) point-of-purchase display

Question 29

Peter visits a local supermarket to buy groceries.While shopping,a sales executive approached him and enquires if he would be willing to try out a new brand of cookies.Which of the following terms best reflects the supermarket's strategy?

A) Special event
B) Premium
C) Point-of-purchase display
D) Sample
E) Rebate

Question 30

A retailer has to confirm the receipt of an online shipping order to its customer.Which of the following mediums is best suited for this purpose?

A) Blog
B) E-mail
C) Twitter
D) Youtube
E) Facebook

Question 31

Janessa prefers high-end cosmetics,but she also likes a good deal.She only purchases her make-up at department stores when they have a gift with purchase.Today she saw at Macy's that if she buys $35 worth of Lancôme cosmetics she would receive a gift with purchase.This gift with purchase is a form of what kind of sales promotion?

A) Premium
B) Rebate
C) Sample
D) Pop-up
E) Special event

Question 32

The value a brand image provides retailers is referred to as _____.

A) brand acceptance
B) brand visibility
C) brand awareness
D) brand equity
E) brand loyalty

Question 33

When a retailer makes a generous contribution to a charity and the event is covered on the evening news,it would be a method of communicating through _____.

A) public relations
B) store atmospherics
C) cooperative advertising
D) product placement
E) product premiums

Question 34

Target uses a Shopkick app to award points to customers who walk around a store and scan products;they can redeem these points for various rewards.Which of the following technologies will best suit this sales promotion?

A) M-commerce
B) Blog
C) Twitter
D) Facebook
E) Linkedin

Question 35

The famous designer,Isaac Mizrahi,made a scheduled appearance at Borders bookstore in Mall of America to sign copies of his book "How to Have Style".This is an example of what type of communication method?

A) Special event
B) Samples
C) Rebates
D) Coupons
E) Premiums

Question 36

_____ is a communication process in which sales associates help customers satisfy their needs through face-to-face exchanges of information.

A) Cold calling
B) Price-based selling
C) Target account selling
D) Solution selling
E) Personal selling

Question 37

A retailer has developed a promotional video for his business.Which of the following new media platforms is best suited to host this video on the internet?

A) Facebook
B) Twitter
C) Linkedin
D) Youtube
E) Gmail

Question 38

Which of the following is classified as a microblog?

A) Facebook
B) Twitter
C) Facemash
D) Gmail
E) Youtube

Question 39

Michael,an actor,plays the protagonist in a sitcom.As per his contractual obligations,he is required to be seen drinking Fizzy Cola,a brand of soda pop,at least once in every episode.Which of the following terms best reflects this situation?

A) Product placement
B) Sample
C) Rebate
D) Public relations
E) Personal selling

Question 40

Target Corporation is planning to give $500 million by the end of 2015 to support education and help kids learn to read.Since 1962,Target has committed 5% of its income to support local communities.Target uses _____ to communicate their continued commitment to local communities.

A) public relations
B) brand awareness
C) cooperative advertising
D) brand placement
E) brand associations

Question 41

The _____ determines the budget required to undertake specific tasks to accomplish communication objectives.

A) competitive parity method
B) percentage-of-sales method
C) affordable budgeting method
D) rule-of-thumb method
E) objective-and-task method

Question 42

Which of the following is typically the last step in developing a retail communication program?

A) Implement and evaluate programs.
B) Establish objectives.
C) Determine budget.
D) Allocate budget.

Question 43

_____ refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service.

A) Brand equity
B) Brand personality
C) Brand positioning
D) Brand image
E) Brand awareness

Question 44

In a national print advertisement,Levi's was showcasing their new denim jean products.At the bottom of the ad,Macy's logo was found as a place where the new denim jeans could be purchased by customers.This is an example of _____.

A) co-op advertising
B) partnering promotions
C) a double truck
D) a double pocket promotion
E) a spot promotion

Question 45

A(n)_____ is a promotional program undertaken by a vendor and a retailer working together.

A) cooperative program
B) customer relationship management program
C) employee feedback management program
D) employee assistance program
E) work-life balance program

Question 46

Which of the following is a well-stated communication program objective?

A) Increase sales over 12 months.
B) Increase awareness in our target market.
C) Reduce customer complaints.
D) Increase brand awareness by 15% in the next 6 months.
E) Communicate our customer service commitment to our customers.

Question 47

When developing a retail communication program,sales goals are set when the _____.

A) objectives are established
B) budget is determined
C) budget is allocated
D) program is implemented and evaluated

Question 48

Retailers build top-of-mind awareness by _____.

A) using memorable symbols
B) keeping prices low
C) buying assortments from the leading vendors
D) connecting with family values
E) distributing coupons

Question 49

Which of the following is an example of aided recall?

A) Jake asks Jack what his favorite burger is,and Jack replies McDonald.
B) Kelvin asks Mark if he knows Harley Davidson,and Mark answers yes.
C) Luke asks Peter what his favorite chocolate is,and Peter replies Hershey's.
D) Ryan asks Carlos if he knows Zippo,and Carlos answers no.
E) Susan asks Sara what her favorite perfume is,and Sara replies Estelle Lauder.

Question 50

_____ is based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution.

A) Objective-and-task analysis
B) Rule-of-thumb analysis
C) Marginal analysis
D) Affordable budgeting analysis
E) Percentage-of-sales analysis

Question 51

Which of the following is typically the first step in developing a retail communication program?

A) Determine budget.
B) Implement and evaluate programs.
C) Allocate budget.
D) Establish objectives.

Question 52

Which of the following is an example of top-of-mind awareness?

A) Ben asks Dwight what his favorite cola is,and Ben replies that he does not have any favorites.
B) Melvin asks Steve is he knows GAP,and Melvin answers no.
C) Carol asks Lara if she knows Bloomingdales,and Lara answers yes.
D) Jason asks Shaun what his favorite brand of car is,and Shaun replies BMW.
E) Gwen asks Josh if he knows Tiffany's,and Josh answers yes.

Question 53

Andrea wants to build top-of-mind awareness for her nail shop.The best way for her to develop this awareness would be to _____.

A) partner with her vendors to bring great merchandise into the store
B) repeatedly expose customers to the name of the shop through advertising
C) offer better customer service
D) teach nail design classes
E) develop the best inventory of custom nails in the city

Question 54

Cinderella's castle would be an example of a(n)_____.

A) destination memory of Mickey Mouse
B) brand association of Walt Disney
C) marketing program of the Cinderella story
D) brand exposure of Cinderella dolls
E) aided recall of all Disney stories

Question 55

When developing a retail communication program,communication objectives are set when the _____.

A) program is implemented and evaluated
B) budget is determined
C) objectives are established
D) budget is allocated

Question 56

Sports Authority anticipates running a print advertisement campaign during the beginning of the year in support of customers' anticipated New Year's resolutions to get in physical shape.Sports Authority asks their key vendors to partner with them in covering the expenses of the ad campaign.Vendors agree to support the _____ as long as they are certain that their products will be featured in the advertisements.

A) co-op advertising
B) partnering promotions
C) double truck
D) double pocket promotion
E) spot promotion

Question 57

When developing a retail communication program,a marginal analysis takes place when _____.

A) the budget is allocated
B) the program is implemented and evaluated
C) the objective is determined
D) the budget is determined

Question 58

The _____ uses past sales and communication activities to determine the present communication budget.

A) percentage-of-sales method
B) rule-of-thumb method
C) gross margin percent
D) percentage-of-profit
E) break even method

Question 59

In most cases,which of the following is a reason why it is very hard to perform a marginal analysis?

A) It causes a brain drain within the organization.
B) It is a very expensive and time consuming process.
C) It is hard to acquire accurate sales data from within the organization.
D) It is hard to acquire accurate information on communication expenditure.
E) Managers don't know the relationship between communication and sales.

Question 60

Luke was interested in developing a communication budget for his holistic vitamin shop which he will be opening in thirty days.He is planning a few promotional sales and will advertise through local newspapers.With the available information,what method would be best for Luke to pursue to develop his communication program?

A) Affordable method
B) Objective-and-task method
C) Percentage-of-sales method
D) Competitive-parity method
E) Developmental method

Question 61

Which of the following is the formula for calculating click-through rate?

A) Number of impressions + The number of times a user clicks on ad
B) The number of times a user clicks on an ad - Number of impressions
C) The number of times a user clicks on ad * Number of impressions
D) The number of times a user clicks on an ad/Number of impressions
E) Number of impressions - The number of times a user clicks on ad

Question 62

The owner of a jewelry retail chain estimated advertising at $4,000 for the year and estimated the downtown store location's market share at 35 percent.By using the competitive parity method,what is the jewelry downtown store location's communication budget?

A) $6,600
B) $5,400
C) $600
D) $2,600
E) $1,400

Question 63

The _____ method uses the difference between the forecasted sales and the expenses plus the desire profit for the communication budget.

A) affordable budgeting
B) objective-and-task
C) percentage-of-sales
D) competitive parity
E) marginal analysis

Question 64

Retailers use _____ to determine the communication budget by forecasting sales during the budget period and then applying a predetermined percentage to set the budget.

A) percentage-of-profit
B) competitive parity method
C) marginal analysis method
D) percentage-of-sales method
E) affordable budgeting method

Question 65

Why is it necessary for retailers to develop and implement an integrated communication program?

Question 66

How can having strong brands benefit a retailer?

Question 67

When retailers use the _____ method,it is easiest to cut communication program expenses if retail sales fail to meet the sales plan rather than increasing the communication expenses to try and generate additional sales.

A) affordable budgeting
B) objective-and-task
C) percentage-of-sales
D) competitive parity
E) marginal analysis

Question 68

Which of the following is the formula to determine the return on investment for an advertisement?

A) (Net sales + Advertising cost)/Advertising cost
B) (Net sales - Advertising cost)/Advertising cost
C) Advertising cost/(Net sales + Advertising cost)
D) Advertising cost/(Net sales - Advertising cost)
E) (Advertising cost - Net sales)/Advertising cost

Question 69

Similar to the other rule-of-thumb methods,the _____ doesn't allow retailers to exploit the unique opportunities or problems they confront in a market.

A) percentage-of-sales method
B) competitive parity method
C) objective-and-task method
D) marginal analysis method
E) affordable budgeting method

Question 70

Under the competitive parity method,the communication budget is set so that _____.

A) sales forecasts will not affect the budget
B) it resembles a fixed percentage of sales
C) surplus cannot be allocated to other categories
D) the retailer's share of the communication expenses equals its share of the market
E) retailers can exploit opportunities they confront in the market

Question 71

In the late 90s,Sears spent much of its communication budget advertising the "Softer Side of Sears" campaign since it felt the customer knew very little of Sears' apparel assortments and thus there would be a substantial return from advertising apparel versus advertising the more known appliances.What principle for budget allocation was Sears potentially using?

A) Percentage of sales method
B) Rule of thumb method
C) Asset principle
D) High-assay principle
E) Affordable method

Question 72

In new media,_____ refer to the number of times an ad appears in front of the user.

A) impressions
B) view rates
C) air rates
D) true views
E) expressions

Question 73

Which method for determining a communication method helps to ensure that the retailer will not spend beyond its means?

A) Break-even analysis method
B) Objective-and-task method
C) Percentage-of-sales method
D) Competitive parity method
E) Marginal analysis method

Question 74

The retailer allocates the budget to areas that will yield the greatest return.This approach for allocating a budget is referred to as the _____.

A) high-margin principle
B) high-assay principle
C) contribution principle
D) attraction principle
E) break-even principle

Question 75

Calculate the return on investment for an advertisement from the given data.Net sales is $1000,and advertising cost is $50.

A) 18
B) 19
C) 21
D) 23
E) 25

Question 76

How can brands benefit the consumer?

Question 77

What is a brand?

Question 78

A sponsored link was delivered 100 times,and 10 people clicked on it.Calculate the click-through rate.

A) 125
B) -115
C) 600
D) 115
E) 10

Question 79

For a multi-chain's new store location,the most inappropriate communication program budget method would be _____.

A) affordable budgeting
B) objective-and-task
C) percentage-of-sales
D) competitive parity
E) marginal analysis

Question 80

The _____ method assumes that communication expenses are just a cost of business and do not promote sales and profit.

A) affordable budgeting
B) objective-and-task
C) percentage-of-sales
D) competitive parity
E) marginal analysis