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The use of newspapers and magazines as couponing vehicles has increased dramatically since the introduction of FSIs.

A) True
B) False

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Which of the following statements is true of couponing?


A) Coupons always assist in providing an immediate response.
B) Coupons are often used by consumers who are already loyal to the brand.
C) Coupons are useless when it comes to promoting established products.
D) Coupons are more effective than sampling for inducing initial product trial in a short period.
E) Coupons have an extremely high redemption ratE.A problem associated with using coupons to attract new users to an established brand is that it is difficult to prevent the coupons from being used by consumers who already use the brand.Rather than attracting new users, coupons can end up reducing the company's profit margins among consumers who would probably purchase the product anyway.However, they can help retain users.

F) All of the above
G) None of the above

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The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is:


A) sweepstakes.
B) contests.
C) frequent patronage programs.
D) trade promotions.
E) event sponsorships.

F) All of the above
G) B) and D)

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Pluto Inc. places a 50 cent-off coupon for another brand, Krispies maple syrup, on the outside of boxes of its Pluto Rice Cereal. This is an example of a(n) _____ coupon.


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

F) None of the above
G) A) and E)

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An appliance manufacturer offers a $50 payment to salespeople who work at J&J Appliance Inc., a retailer, for each sale of the company's new line of refrigerators. This payment by J&J Appliance is known as:


A) a slotting fee.
B) a mnemonic.
C) a spiff.
D) pull money.
E) a bonus pack.

F) B) and C)
G) D) and E)

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Media support for a sales promotion program is typically considered optional.

A) True
B) False

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With reference to the various sampling methods, _____ is used when it is important to control where the sample is delivered and when the products are of a perishable nature.


A) mail sampling
B) couponing
C) door-to-door sampling
D) on package sampling
E) mobile coupon

F) A) and D)
G) A) and C)

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A strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand.

A) True
B) False

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Sales promotion activities cannot be targeted to different parties in the marketing channel.

A) True
B) False

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Why have frequency programs become so popular with marketers?


A) Frequency programs support the goal of customer retention.
B) Frequency programs are especially effective when used for new product introductions.
C) Frequency programs are a type of sweepstakes that generate a great deal of consumer interest.
D) Frequency programs allow marketers to set cookies so they can track consumers' activities.
E) Frequency programs are a promotional form of brand extension strategy.

F) A) and C)
G) B) and D)

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Which of the following is a disadvantage of couponing?


A) It can be difficult to estimate how many consumers will use a coupon and when.
B) It discourages initial product trial.
C) It assists in reducing the price of a product only by relying on retailers for cooperation.
D) It assists only in attracting new customers but does not help in retaining existing customers.
E) It may encourage regular users to trade down to inexpensive brands.

F) D) and E)
G) A) and C)

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_____ coupons are in/on-pack coupons that are redeemable on the purchase of a different product, usually one made by the same company, but occasionally through a tie-in with another manufacturer.


A) Bounce back
B) Cross-ruff
C) Instant
D) Cross-sell
E) In-store

F) B) and C)
G) A) and E)

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Some businesspeople think that the packaged-goods brand management system has contributed to marketers' increased dependence on:


A) telemarketing.
B) direct mail.
C) publicity.
D) synergistic buying.
E) sales promotion.

F) A) and C)
G) B) and D)

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How has the view of sales promotions changed during the past decades?


A) Sales promotions are now considered an essential part of an organization's branding strategies.
B) Sales promotion tactics are now developed before the branding strategy is determined.
C) Sales promotions are now believed to be an ineffective tool for creating brand image.
D) Creatives have become more sophisticated, and this sophistication has led to a decline in their dependence on sales promotion.
E) Sales promotion techniques are increasingly being considered as "obsolete."

F) A) and C)
G) A) and D)

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Electronically dispensed checkout coupons:


A) generate impulse buying and product trial.
B) have no redemption deadline.
C) are available on a company's website and must be printed out to be used.
D) are cost-effective and can be targeted to specific categories of consumers.
E) are attached to the outside of the package so they can be ripped off and redeemed immediately.

F) A) and E)
G) A) and B)

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Bonus packs:


A) offer consumers an extra amount of a product or service but at a higher than normal price.
B) help marketers provide extra value to consumers without having them do anything more than purchase the product.
C) are not an effective way of loading consumers with a product and reducing their susceptibility to a competitor's promotional offer.
D) are always welcome by retailers since bonus packs never require extra shelf space and increase retailers' profit margins.
E) result in a higher cost per unit for the consumer.

F) C) and E)
G) B) and D)

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Every time Beth buys a book at The Venus Bookstore, she presents her Venus card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a:


A) sweepstakes program.
B) frequency program.
C) customer rewards contest.
D) premium promotion.
E) rebate program.

F) C) and D)
G) D) and E)

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Which of the following is a limitation of sampling through the mail?


A) It can be used only by multiproduct firms.
B) It must always be used in combination with another sampling method.
C) It involves extensive postal restrictions.
D) It cannot be used for nonperishable products.
E) It can be used only for food samples.

F) A) and B)
G) None of the above

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Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. Which of the following would best support a marketer in producing quick and easily measurable jump in sales?


A) Mass-media advertising
B) A strategy that enhances the advertising carryover effect
C) Sales promotions such as coupons and price discounts
D) Bait-and-switch marketing techniques
E) Out-of-home advertising media

F) A) and E)
G) A) and D)

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Which of the following is an advantage of sampling through the mail?


A) It offers a greater markup for the retailer than other sampling techniques.
B) It can take place in stores as well as at a variety of other venues such as concerts.
C) The marketer has control over where and when the product will be distributed.
D) The distribution system is unaffected by postal restrictions and increasing postal rates.
E) This sampling method is always used in combination with another sampling method.

F) C) and D)
G) A) and E)

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