Deck 12: Sales Promotions

Question 1

A toy placed inside a box of cereal is an example of a(n):

A)bonus pack.
B)in-package premium.
C)store premium.
D)self-liquidating premium.

Answer 1

B

Question 2

What is the difference between consumer promotions and trade promotions?

Answer 2

Consumer promotions are incentives offered to the end user while trade promotions are offered to channel members.

Question 3

A $1.00 coupon placed inside a box of Quaker Oats is an example of which type of coupon?

A)Instant redemption
B)Bounce-back
C)Cross-ruffing
D)Response offer

Answer 3

B

Question 4

When a manufacturer offers a special promotion on its products to other companies for their consumption and not for resale, it is a:

A)consumer promotion.
B)bonus program.
C)trade promotion.
D)brand awareness program.

Question 5

Some marketing experts believe that the overuse of coupons can damage a brand's image. Which of the following can enhance a brand's image?

A)Contests and sweepstakes
B)Bonus packs
C)Sampling
D)Premiums

Question 6

Which type of coupon is placed on a package to be used during the purchase of that product?

A)Freestanding
B)Bounce-back
C)Instant redemption
D)Rebate

Question 7

A gift sent by mail to a customer, based on a proof-of-purchase receipt, is which type of premium?

A)Free-in-the-mail
B)Self-liquidating
C)Bounce-back
D)Instant redemption

Question 8

When a cash register triggers a coupon for a product, it is:

A)bounce-back.
B)scanner-delivered.
C)cross-ruffing.
D)response offer.

Question 9

A coupon for $10.00 off on a package of baseballs placed on a baseball glove is a:

A)response offer coupon.
B)cross-ruffing coupon.
C)premium.
D)bonus offer.

Question 10

A Star Wars action figure given when a customer buys a Whopper meal at Burger King is which type of premium?

A)Bounce-back
B)In- or on-package
C)Store or manufacturer
D)Self-liquidating

Question 11

The primary vehicle for distributing print coupons is:

A)magazines.
B)newspapers.
C)direct mail.
D)freestanding inserts.

Question 12

A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon?

A)Cross-ruffing
B)Scanner-delivered
C)Response-offer
D)Instant redemption

Question 13

Freestanding inserts are found primarily in:

A)magazines.
B)newspapers.
C)shopping malls.
D)catalogs.

Question 14

Consumers must pay a small amount of money for which type of premium?

A)In- or on-package
B)Cross-ruffing
C)Store
D)Self-liquidating

Question 15

Prizes or gifts that consumers receive when purchasing products are called:

A)add-ins.
B)premiums.
C)purchase incentives.
D)giveaways.

Question 16

Bounce-back coupons are used to encourage:

A)brand switching.
B)repeat purchases.
C)trial purchases.
D)brand loyalty.

Question 17

A bounce-back coupon is:

A)not immediately redeemable.
B)not normally distributed by a manufacturer.
C)a form of premium.
D)used at the time the product is purchased.

Question 18

A package of Oreo cookies has a $1.00-off coupon attached to the package that can easily be removed. This is an example of which type of coupon?

A)Instant redemption
B)Bounce-back
C)Cross-ruffing
D)Response-offer

Question 19

Manufacturers and other members of the marketing channel use trade promotions to help pull products through to retailers.

Question 20

Scanner-delivered coupons encourage:

A)brand switching.
B)repeat purchases.
C)trial purchases.
D)brand loyalty.

Question 21

The delivery of a free product to consumers for their use or consumption is a:

A)coupon.
B)premium.
C)bonus pack.
D)sample.

Question 22

A "write our new slogan" event that awards a prize to the winner is a(n):

A)contest.
B)sweepstakes.
C)premium.
D)illegal activity.

Question 23

A pharmaceutical company giving free samples of medicine to a physician is which type of sampling?

A)Direct
B)Professional
C)Selective
D)Media

Question 24

Each of the following is an important key to building a successful premium program except:

A)match the premium to the target market.
B)select premiums that are highly popular and current fads.
C)select premiums that reinforce the firm's product and image.
D)integrate the premium with other IMC tools.

Question 25

Cash returns on soft goods, such as food or clothing, are called:

A)refunds.
B)rebates.
C)bonus packs.
D)premiums.

Question 26

Which of the following consumer promotions is the best method for encouraging consumers to try a new product?

A)Coupons
B)Sampling
C)Premiums
D)Contests or sweepstakes

Question 27

When marketers for time-share properties offer to let you stay for a night or weekend on the condition you listen to a sales pitch, they are using which consumer promotion technique?

A)Sampling
B)A premium
C)Price-off
D)Coupon

Question 28

A small perfume sample placed in a magazine is which type of sampling?

A)Direct
B)Response
C)Media
D)Selective

Question 29

Placing a sample bar of soap in every mailbox within a 10-block area is an example of which type of sampling?

A)Direct
B)Cross-ruff
C)Selective
D)Response

Question 30

Giving out samples at a site such as a state fair, parade, or sporting event is which type of sampling?

A)Direct
B)Response
C)Cross-ruff
D)Selective

Question 31

The enjoyment of playing or participating in a contest or sweepstakes has which type of value?

A)Intrinsic
B)Extrinsic
C)Redemption
D)Historic

Question 32

For most people, a free trip to Hawaii is an example of a prize with high:

A)intrinsic value.
B)extrinsic value.
C)redemption rates.
D)intrusion value.

Question 33

Cooking food in a grocery store and giving small samples of the food to consumers who pass by is which form of sampling?

A)In-store distribution
B)Direct
C)Response
D)Cross-ruffing

Question 34

When samples are mailed or delivered door-to-door, which form of sampling is being used?

A)In-store distribution
B)Direct
C)Bonus pack
D)Cross-ruffing

Question 35

Cash returns on hard goods, such as appliances and electronics, are:

A)refunds.
B)rebates.
C)bounce-back coupons.
D)premiums.

Question 36

Andy will not purchase a computer unless the manufacturer offers a rebate. This is an example of which of the following problems associated with refund and rebate programs?

A)Fraud and misredemption
B)Costs
C)Excessive paperwork to process the refund or rebate
D)Diminished effectiveness

Question 37

Which of the following is related to the actual attractiveness of a prize in a contest?

A)Intrinsic value
B)Extrinsic value
C)Redemption rates
D)Internet inquiries

Question 38

Contests and sweepstakes offered through which of the following have grown during the past decade?

A)Print media
B)Newspapers and magazines
C)Television through infomercials
D)The internet and social media

Question 39

Providing a small sample of laundry detergent with the purchase of dryer sheets is which type of sampling?

A)Direct
B)Response
C)Cross-ruff
D)Media

Question 40

Participants may win a prize without performing any type of activity with a:

A)contest.
B)sweepstakes.
C)premium.
D)price-off program.

Question 41

A temporary price reduction that is marked on the package of a product is a:

A)bonus offer.
B)price-off.
C)premium.
D)bad idea, because the retailer may not honor the price.

Question 42

The primary disadvantage of sampling is:

A)the inability to target a specific consumer segment.
B)diminished effectiveness.
C)the lack of visibility.
D)the cost of producing and distributing the sample.

Question 43

Folks Southern Kitchen advertises an $8.99 lunch special in the local newspaper for a meal that normally costs $10.99 during March. What type of promotion is being used?

A)Coupon
B)Sampling
C)Premium
D)Price-off

Question 44

Each of the following is a reason to offer a bonus pack except:

A)develop customer loyalty.
B)attract new users.
C)enhance brand parity.
D)encourage brand switching.

Question 45

The primary reasons retailers give for supporting a manufacturer's consumer promotions program include each of the following, except:

A)increase store traffic.
B)increase store sales.
C)increase sales of the manufacturer's brand.
D)attract new customers.

Question 46

Bonus packs can lead to brand switching if the consumer:

A)is price-sensitive.
B)is promotion-sensitive.
C)believes the bonus exceeds 30 percent.
D)has purchased the brand previously.

Question 47

Two or more consumer promotional activities combined into a single campaign is a(n):

A)intercompany tie-in.
B)intracompany tie-in.
C)overlay.
D)premium.

Question 48

Tyson and General Foods developed a joint consumer promotion. This is an example of a(n):

A)intracompany tie-in.
B)intercompany tie-in.
C)overlay.
D)premium.

Question 49

Hershey has both a coupon and an entry form for a sweepstakes in an advertisement. This is an example of a(n):

A)intercompany tie-in.
B)intracompany tie-in.
C)overlay.
D)bonus pack.

Question 50

When two products from different companies are promoted together within one consumer promotion, it is a(n):

A)intracompany tie-in.
B)intercompany tie-in.
C)overlay.
D)trade incentive.

Question 51

The key to a successful sampling program is:

A)targeting the right audience.
B)reducing the costs of distribution.
C)gaining visibility prior to the sampling program.
D)gaining the cooperation of retailers and other channel members.

Question 52

Each of the following is a reason to offer a bonus pack except:

A)increase usage of the product.
B)stimulate trial purchase.
C)match or preempt competitive actions.
D)stockpile the product.

Question 53

A coupon is a price reduction offer to a consumer.

Question 54

In recent years, marketers have increased the use of which medium for distributing samples?

A)Broadcast media
B)Freestanding inserts
C)Magazines
D)Direct mail

Question 55

The primary company advantage of internet sampling is that:

A)it is cheaper than the other methods of sampling distribution.
B)more expensive samples can be provided.
C)only individuals who request the sample will receive it.
D)the target market of the sampling program tends to have a higher educational level and higher income.

Question 56

One method of maintaining brand loyalty and reducing brand switching at a minimal cost is to use:

A)coupons.
B)bonus packs.
C)contests and sweepstakes.
D)sampling.

Question 57

Adding an extra bar of soap to a three pack and offering it at a special price is a:

A)rebate pack.
B)prize package.
C)bonus pack.
D)selective sample.

Question 58

A price-off program:

A)is effective for individuals that have a high degree of brand loyalty to a competing brand.
B)has little impact on sales.
C)usually boosts sales, but it can hurt profits.
D)decreases price sensitivity over time.

Question 59

When two products from the same company are promoted together within one consumer promotion, it is a(n):

A)intracompany tie-in.
B)intercompany tie-in.
C)overlay.
D)bonus pack.

Question 60

With a bonus pack, a ________ percent bonus is the most common.

A)15
B)30
C)50
D)65

Question 61

A free toy placed inside a package of cereal is an example of an in- or on-package premium.

Question 62

The majority of coupons are sent out through digital media.

Question 63

In a contest or sweepstakes, extrinsic value is determined by the value of the prize to the consumer.

Question 64

A sporting goods store offering a free golf bag with the purchase of three or more golf clubs is an example of a self-liquidating premium.

Question 65

Some marketing experts believe overuse of premiums can damage a brand's image.

Question 66

A contest requires the use of a skill while a sweepstakes relies on random chance.

Question 67

FSIs, freestanding inserts, are the most common method used to deliver coupons to consumers.

Question 68

A self-liquidating premium is one in which the consumer pays a small amount money for the gift or item.

Question 69

An instant redemption coupon may lead to a trial purchase because the customer has immediate access to the discount.

Question 70

Customers who already have a preference for a brand redeem the majority of all coupons.

Question 71

A coupon for peanut butter on a jar of jelly is a cross-ruff coupon.

Question 72

In a contest or sweepstakes, intrinsic value is the perceived value the consumer places on the prizes offered.

Question 73

Premiums are prizes or gifts consumers receive when purchasing products.

Question 74

A cross-ruffing coupon is placing a coupon inside a product's package with a specific expiration date.

Question 75

Premiums are normally much more successful than coupons in increasing sales and profits.

Question 76

A consumer is typically required to make a purchase when entering a sweepstakes.

Question 77

A scanner-delivered coupon is sent out by the internet.

Question 78

Bounce-back coupons tend to encourage trial purchases of products.

Question 79

When a company offers a premium, consumers receive a discount for the good or service and receive some type of special offer or free merchandise.

Question 80

A scanner-delivered coupon is often given for a competing brand to encourage brand-switching.