Question 1

_____ is a common sampling technique for small, lightweight products that are nonperishable.

Accepted Answer

A) Door-to-door sampling 
B) Sampling through the mail 
C) In-store sampling 
D) On-package sampling 
E) Location sampling

Question 2

_____ is an exhibition or forum where manufacturers can display their products to current and prospective buyers.

Accepted Answer

A) A planogram 
B) A trade layout 
C) Cooperative advertising 
D) A trade show 
E) Event marketing

Question 3

Payments offered by manufacturers to retailers for merchandising products or running special in-store programs are called:

Accepted Answer

A) off-invoice allowances. 
B) push monies. 
C) advertising subsidies. 
D) promotional allowances. 
E) slotting allowances.

Question 4

A package of Confident razor blades contains a 75 cent-off coupon for Confident Foamy shaving cream. This is an example of a(n) _____ coupon.

Accepted Answer

A) cross-ruff 
B) bounce-back 
C) checkout 
D) instant 
E) rebate

Question 5

Which of the following statements is true of slotting allowances?

Accepted Answer

A) Retailers justify slotting allowances by pointing to the costs associated with taking on a new product. 
B) Retailers are not justified in charging slotting allowances since most new products are successful. 
C) Large companies with popular brands are the most likely to have to pay slotting allowances. 
D) Slotting allowances are illegal and banned by the federal government. 
E) The costs slotting allowances add to new product introductions are minimal.

Question 6

With respect to the allocation of the promotional budget, when a brand moves to the maturity stage:

Accepted Answer

A) push monies are used to encourage retailers to stock more products. 
B) advertising is primarily a reminder to keep consumers aware of the brand. 
C) promotional dollars will be used only for distributing coupons to customers. 
D) all promotional support for the brand will be removed. 
E) promotional dollars will be used only for distributing samples.

Question 7

How are marketers responding to the fragmentation of the consumer market?

Accepted Answer

A) They are using more media monitoring services to make event sponsorship more successful. 
B) They are using more traditional mass-media based advertising. 
C) They are using more sales promotions that are tied to local events. 
D) They are employing clipping services to determine the effectiveness of their press releases. 
E) They are ignoring the fragmentation of the consumer market and are continuing to do business as usual.

Question 8

One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service.

Accepted Answer

A) True 
 B)False

Question 9

Event sampling is where a package is attached to another item.

Accepted Answer

A) True 
 B)False

Question 10

Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are known as:

Accepted Answer

A) nonfranchise-building promotions. 
B) consumer franchise-building promotions. 
C) high-involvement sales promotions. 
D) sales promotion traps. 
E) event marketing.

Question 11

Which of the following statements is true of rebates?

Accepted Answer

A) Rebates are synonymous with refunds, and are used only for consumer durables like automobiles and appliances. 
B) Most retailers want to be involved with rebate programs. 
C) Nonusers of rebates perceive the rebate redemption process as too complicated. 
D) Rebates are increasing in popularity among both manufacturers and retailers. 
E) Rebates are ineffective in encouraging repeat purchases.

Question 12

Which of the following is a disadvantage of bounce-back coupons?

Accepted Answer

A) They do not attract nonusers of a particular brand. 
B) They are redeemable on the purchase of a different product. 
C) They do not induce customers to repurchase the brand. 
D) They are not useful for a brand that has reached the maturity stage. 
E) They are not useful for products that are in the early phases of their life cyclE.The main limitation of bounce-back coupons is that they go only to purchasers of the brand and thus do not attract nonusers.

Question 13

An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon.

Accepted Answer

A) cross-ruff 
B) bounce-back 
C) instant 
D) cross-sell 
E) checkout

Question 14

Which of the following have the highest redemption levels of all types of coupons?

Accepted Answer

A) Bounce-back coupons 
B) Cross-ruff coupons 
C) Instant coupons 
D) Cross-sell coupons 
E) Premium coupons

Question 15

Which of the following is an example of a nonfranchise-building promotion?

Accepted Answer

A) Consumer sampling 
B) Contests targeted to ultimate consumers 
C) Price-off deals 
D) Event sponsorship 
E) Frequency programs

Question 16

Which of the following is true of horizontal cooperative advertising?

Accepted Answer

A) It is sponsored by a group of retailers. 
B) It is used only in the maturity stage of a product's life cycle. 
C) It is usually conducted by a company and its marketing subsidiaries. 
D) It is synonymous with comparative advertising. 
E) It is synonymous with vertical advertising.

Question 17

Which of the following is true of self-liquidating premiums?

Accepted Answer

A) They are used for lightweight, nonperishable products. 
B) They require customers to pay for the mailing costs. 
C) They are typically offered at higher-than-retail prices. 
D) They are also known as cost-plus premiums. 
E) They are usually delivered directly to the customers' doorsteps.

Question 18

Samples would be an appropriate promotional strategy:

Accepted Answer

A) to support an everyday low price (EDLP) strategy. 
B) to facilitate a push promotional strategy. 
C) to introduce a new product into the marketplace. 
D) in the decline stage of a product's life cycle. 
E) to build long term relationships with customers.

Question 19

The in-store sampling approach can be very effective for food products because:

Accepted Answer

A) customers get to taste the sample. 
B) customers get the sample delivered to their homes. 
C) it is an inexpensive sampling method. 
D) it does not require a great deal of planning. 
E) it does not require the cooperation of retailers.

Question 20

Got Game, a sports store, ran a promotion campaign in which it offered a box of fifteen Pyramid golf balls at the price of twelve. This is an example of a:

Accepted Answer

A) price-off deal. 
B) premium. 
C) bonus pack. 
D) rebate. 
E) trade allowancE.The above scenario is an example of a bonus pack.Bonus packs offer the consumer an extra amount of a product at the regular price by providing larger containers or extra units.Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more product for the money.

Exam 16: Sales Promotion