Question 1

The practice of _____ occurs when a manufacturer restricts a deal to a limited geographical area.

Accepted Answer

A)  forward buying 
B)  diverting 
C)  account-specific marketing 
D)  slotting 
E)  spiffing

Question 2

Trade promotions are appropriately timed when they are used strategically to offset competitive promotional activity.

Accepted Answer

A) True 
 B)False

Question 3

Alan Manufacturing Company rewards retailers for selling increased quantities of their brands to shoppers.This reward is called _____.

Accepted Answer

A)  push money 
B)  pay-for-performance 
C)  slotting allowances 
D)  account-specific marketing 
E)  bill-back allowances

Question 4

A retailer can exercise its power in a channel by _____.

Accepted Answer

A)  requesting a pay-for-performance agreement from the manufacturer 
B)  requesting a deslotting agreement from the manufacturer 
C)  requesting a scanner-verified trade promotion 
D)  requesting an account-specific marketing program 
E)  requesting every day low pricing

Question 5

The Lippincott Company,a manufacturer of canned vegetables,would like to sell the supermarket chain BuyRight on the idea of stocking a new line of pre-cooked salt-free vegetables.BuyRight informs Lippincott that in order to justify the cost of adding a new product line to its shelves,it will have to charge Lippincott $250 for every store in the BuyRight chain that stocks Lippincott's new product.What is this type of allowance called?

Accepted Answer

A)  spiffing 
B)  slotting 
C)  diverting 
D)  vendor support allowance 
E)  off-invoice

Question 6

Sales promotion can permanently stop an established brand's declining sales trend.

Accepted Answer

A) True 
 B)False

Question 7

Dial Corporation had to pay a fee to a retail chain for having an unsuccessful product removed from their distribution centers.This fee is known as _____.

Accepted Answer

A)  a slotting fee 
B)  an exit fee 
C)  street money 
D)  push money 
E)  pull money

Question 8

Suppose that CatGenie learns that one of its competitors,NoMoreLitter,is about to introduce a new product.CatGenie quickly develops a special price-off deal to prevent the competitor from stealing market share.The objective of this deal is to _____ consumers and thereby _____ the sales of the competitor's new product.

Accepted Answer

A)  push; neutralize 
B)  entice; neutralize 
C)  load; preempt 
D)  persuade; dissuade 
E)  overwhelm; neutralize

Question 9

Manufacturers estimate that retailers pass through to consumers _____ of the trade funds that they provide to retailers.

Accepted Answer

A)  all 
B)  most 
C)  half 
D)  less than 25 percent 
E)  none

Question 10

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

Question 11

The target of sales promotion can be _____.

Accepted Answer

A)  retailers, consumers, and the sales force 
B)  retailers, manufacturers, and the sales force 
C)  retailers, consumers, and manufacturers 
D)  wholesalers, retailers, and manufacturers 
E)  competitors, retailers, and consumers

Question 12

The promotional incentive _____ changes a brand's perceived price or value.

Accepted Answer

A)  permanently 
B)  temporarily 
C)  positively 
D)  concurrently 
E)  always

Question 13

Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion?

Accepted Answer

A)  retailers have more power over manufacturers 
B)  reduced brand loyalty 
C)  reduced brand parity and price sensitivity 
D)  short-term orientation and corporate reward structures 
E)  consumer responsiveness

Question 14

Dayton's Department Stores featured a manufacturer's brand in their advertisements.Dayton's would have received a(n)_____ from the manufacturer.

Accepted Answer

A)  off-invoice allowance 
B)  bill-back allowance 
C)  spiff 
D)  exit fee 
E)  slotting allowance

Question 15

Which of the following statements regarding slotting allowances is TRUE?

Accepted Answer

A)  Such allowances are charged by manufacturers to retailers as a requirement for permitting the retailer to stock the manufacturer's new product. 
B)  They have been criticized as representing a form of bribery. 
C)   It is the most frequently used form of trade allowance. 
D)   The retailer bills the manufacturer. 
E)   Forward buying is an offshoot of slotting allowances.

Question 16

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 17

Wholesalers and retailers pay greater carrying charges in holding inventories of large quantities of forward-bought items.

Accepted Answer

A) True 
 B)False

Question 18

Trade allowances are also called trade deals.

Accepted Answer

A) True 
 B)False

Question 19

Describe the fundamentals of a pay-for-performance program.Why could this program be better for the retail system than the traditional system of trade allowances?

Accepted Answer

The answer of Describe the fundamentals of a pay-for-performance program.Why...

Question 20

Explain how retailers can charge manufacturers slotting allowances when many people feel that these allowances are a form of bribery.

Accepted Answer

The answer of Explain how retailers can charge manufacturers slotting...

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

The practice of _____ occurs when a manufacturer restricts a deal to a limited geographical area.

Trade promotions are appropriately timed when they are used strategically to offset competitive promotional activity.

Alan Manufacturing Company rewards retailers for selling increased quantities of their brands to shoppers.This reward is called _____.

A retailer can exercise its power in a channel by _____.

Sales promotion can permanently stop an established brand's declining sales trend.

Dial Corporation had to pay a fee to a retail chain for having an unsuccessful product removed from their distribution centers.This fee is known as _____.

Manufacturers estimate that retailers pass through to consumers _____ of the trade funds that they provide to retailers.

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

The target of sales promotion can be _____.

The promotional incentive _____ changes a brand's perceived price or value.

Which of the following is NOT a factor accounting for the shift from consumer advertising to promotion?

Dayton's Department Stores featured a manufacturer's brand in their advertisements.Dayton's would have received a(n) _____ from the manufacturer.

Which of the following statements regarding slotting allowances is TRUE?

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

Wholesalers and retailers pay greater carrying charges in holding inventories of large quantities of forward-bought items.

Trade allowances are also called trade deals.

Describe the fundamentals of a pay-for-performance program.Why could this program be better for the retail system than the traditional system of trade allowances?

Explain how retailers can charge manufacturers slotting allowances when many people feel that these allowances are a form of bribery.