Deck 14: Retail Communication Mix

Question 1

Sentiment analysis is the process of analyzing social media to assess people's overall attitudes and preferences for products, brands, and marketing.

Answer 1

True
Sentiment analysis is the process of analyzing data posted on social media sites to assess customers' overall valence (positive, neutral and negative) and their intensity of their sentiments and can be used to understand overall attitudes and preferences for products and advertising campaigns.

Question 2

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

Answer 2

E
Retailers tend to use magazines for image advertising because the reproduction quality is high.

Question 3

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

Answer 3

True
Mobile marketing, also called m-commerce, is marketing through wireless handheld devices such as cellular telephones, and m-commerce or mobile commerce involves completing a transaction via the cell phone.

Question 4

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 5

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 6

When retailers and vendors use product placement, they pay to have their product included in nontraditional situations, such as in a scene in a movie or television program.

Question 7

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 8

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 9

________ 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 10

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

Question 11

In TV advertising, "spots" have relatively large audiences, but they are expensive for local retailers.

Question 12

Marketers can use search engine marketing to improve the visibility of their websites in customers' searches online.

Question 13

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

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

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

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

Question 16

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

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

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

Question 19

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 20

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

Question 21

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

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

Question 22

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) Gmail
B) YouTube
C) LinkedIn
D) Facebook
E) Twitter

Question 23

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 24

________ 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 25

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 which kind of sales promotion?

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

Question 26

Target Corporation gives many millions of dollars to support education. Since 1962, Target has committed 5 percent 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 27

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

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

Question 28

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

A) Determine a budget.
B) Implement programs.
C) Allocate the budget.
D) Establish objectives.
E) Evaluate programs.

Question 29

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 30

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 31

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 32

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 33

The famous designer Isaac Mizrahi made a scheduled appearance at a to sign copies of his book How to Have Style. This is an example of which type of communication method?

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

Question 34

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 a budget.
D) Allocate the budget.
E) Develop social media campaigns.

Question 35

Which of the following is classified as a microblog?

A) Facebook
B) Twitter
C) LinkedIn
D) Gmail
E) YouTube

Question 36

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 37

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 38

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 39

Peter visits a local supermarket to buy groceries. While shopping, a sales executive approaches 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 40

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

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

Question 41

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 42

Luke was interested in developing a communication budget for the holistic vitamin shop he will be opening in 30 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 43

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

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

Question 44

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 45

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

Question 46

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

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

Question 47

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 48

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.
E) program is proposed.

Question 49

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) it is equal to the communication expenditure of competitor(s).
E) retailers can exploit opportunities they confront in the market.

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

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.
E) the budget is proposed.

Question 52

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 53

A sporting goods retailer 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. The sporting goods retailer asks its key vendors to partner with it 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 54

In a national print advertisement, Levi's was showcasing its new line of denim jackets. At the bottom of the ad, the Macy's logo was found as a place where the new jackets 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 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.
E) program is finished.

Question 56

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 57

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 58

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 59

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 60

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 61

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 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

What is the major disadvantage associated with using the competitive parity method of determining a retail communication budget?

Question 64

Calculate the return on investment for an advertisement from the given data. Net sales is $1,000, and advertising cost is $50.

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

Question 65

List the four steps involved in developing a retail communication program.

Question 66

Explain how sentiment analysis can be used by retailers and brands.

Question 67

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 68

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 69

Why is it problematic for retailers to spend about the same on communication programs for each geographic region?

Question 70

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 71

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

Question 72

Why is marginal analysis the most economically correct method for setting communication budgets? Why is it still a challenge for retailers to use this method?

Question 73

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 74

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 75

What are the disadvantages associated with using the percentage-of-sales method for establishing a retail communication budget?