Question 1

At a restaurant chain, customers swipe their rewards card at every purchase, and the card tracks how much money was spent. For every $50 spent, the customer receives a free menu item. What type of sales promotion does this restaurant chain use?

Accepted Answer

The restaurant chain is using frequent-user incentives as it rewards customers for spending more money by giving them a free menu item after spending $50.

Question 2

A food company makes a variety of dinner sausages in many flavours. The company just recently introduced a line of meatballs, but sales have not been impressive. To encourage trial of the meatballs, the company should do which of the following?

Accepted Answer

The answer of A food company makes a variety of...

Question 3

A hair products manufacturer asked professional hair stylists to upload a photo of their best look using the company's products, and the winner got an all-expenses-paid trip to Florida. What type of sales promotion is this?

Accepted Answer

This is a contest where participants are asked to submit their best look using the manufacturer's products and the winner is rewarded with an all-expenses-paid trip to Florida.

Question 4

The grocery store that you frequent is concerned by a competitor moving into the area. What should the grocery store do to boost customer loyalty?

Accepted Answer

Offering frequent-user incentives directly rewards and encourages repeat business, thereby boosting customer loyalty.

Question 5

When a retail store such as Hudson's Bay offers a one-day promotion for an extra 15 percent off to customers holding a charge account with them, what is it attempting to?

Accepted Answer

The promotion is attempting to boost customer loyalty by offering a discount to customers who have a charge account with the store.

Question 6

All of the following are examples of sales promotion EXCEPT which one?

Accepted Answer

Direct-response advertising is a form of advertising, not a form of sales promotion. Sales promotions are temporary incentives or tactics designed to stimulate immediate sales. Rebates, samples, and point-of-purchase displays are all examples of sales promotion.

Question 7

Knowing that many people hold parties for Canada Day, Pepsi would like to stand out among competitors and gain the attention of consumers. What would be the best promotion method for Pepsi?

Accepted Answer

Creating an eye-catching point-of-purchase display at grocery stores would be the best promotion method for Pepsi because it would allow them to grab the attention of consumers who are already in the store for Canada Day party supplies. It would also differentiate them from competitors who may be offering coupons or under-the-cap contests.

Question 8

When Estée Lauder offers a free gift with a $15 purchase of its product from a retail outlet, it is specifically using which type of promotional technique?

Accepted Answer

The promotional technique being used here is a premium, which is offering a free item as an incentive for purchasing a product.

Question 9

When Pringles created the new "Snack Stacks" size of chip packages for lunchboxes, it ran advertisements and offered coupons for one free can. What was the objective of this promotion?

Accepted Answer

The objective of offering coupons for one free can was to encourage trial of the product.

Question 10

If you buy $40 or more of Lancôme cosmetics at Nordstrom, you receive a free full-size repair, lift, or hydrate serum. What type of sales promotion does this represent?

Accepted Answer

This represents a premium sales promotion, as customers can receive a free full-size serum with a purchase of $40 or more of Lancôme cosmetics at Nordstrom.

Question 11

At a local frozen yogurt shop, customers can present a card to be punched at the time of each purchase. Once they have made 10 purchases, they can get a free small frozen yogurt. What type of sales promotion does this represent?

Accepted Answer

This type of reward for frequent purchases is known as a frequent-user incentive.

Question 12

A few days after you purchased an in-home entertainment system, you receive a call from the installer, asking if you have any questions and if the system is working as expected. Which step in the personal-selling process does this represent?

Accepted Answer

This represents the follow-up step in the personal-selling process, where the installer is checking in with the customer to ensure satisfaction and address any issues or questions they may have.

Question 13

Kraft sets up a stand inside a supermarket and hands out samples of its new jalapeno-flavoured cheese along with a coupon for 50 cents off the purchase. Which of the following is likely to be Kraft's objective for this sales promotion?

Accepted Answer

Kraft's objective for this sales promotion is to encourage trial of their new jalapeno-flavoured cheese by giving out samples and a coupon for 50 cents off the purchase. The aim is to attract new customers and increase sales of the new product.

Question 14

As a general rule, complex or high-value products are likely to require personal selling, whereas lower-priced consumer products are more likely to be sold using which of the following?

Accepted Answer

Lower-priced consumer products are more likely to be sold using advertising and sales promotion, as personal selling is not cost-effective for products with a lower price point. Public relations and event sponsorship may complement advertising and sales promotion efforts, but they are not the primary means of selling lower-priced consumer products.

Question 15

Which of the following is a broad set of communication activities used to build favourable relations with customers, investors, the media, government officials, and society in general?

Accepted Answer

Public relations is specifically designed to build and maintain relationships with various stakeholders including customers, investors, the media, government officials, and society in general. The marketing-communications mix, advertising, and sales promotion are all part of a company's overall marketing communication strategy, but they are not as comprehensive as public relations.

Question 16

A retailer places a life-size cardboard cut-out of a well-tanned beauty pageant contestant in a bikini, holding a can of suntan lotion, at the end of the aisle where sun-care products can be purchased. What type of sales promotion is this?

Accepted Answer

The life-size cardboard cut-out is a point-of-purchase display, which is an in-store promotional tactic designed to attract attention and encourage impulse purchases.

Question 17

A manufacturer of hair care products bundles a sample-sized bottle of its new hair conditioner with bottles of its popular shampoo. Which promotional objective does this best reflect?

Accepted Answer

Bundling the sample-sized bottle of conditioner with the popular shampoo encourages customers to try the new product, which reflects the promotional objective of encouraging trial of a product.

Question 18

An automotive repair shop sends out a direct-mail offer for a complete tune-up for first-time customers at a greatly reduced price. Which sales promotion objective is the garage trying to accomplish?

Accepted Answer

The garage is trying to attract new customers by offering a special deal to first-time customers.

Question 19

Early Bird Dry Cleaners displays a sign in the window of its store that says it will take any competitor's coupons. Which element of the promotion mix does this illustrate?

Accepted Answer

This illustrates the element of sales promotion, as the store is using a promotional offer (accepting competitor's coupons) to attract customers and increase sales.

Question 20

A home improvement retailer runs weekly sales in which you can get certain items for free after sending in a form and a copy of your sales receipt. What does this exemplify?

Accepted Answer

This exemplifies a rebate offer in which the customer is refunded the full purchase price of the item after submitting a form and proof of purchase.

Quiz 15: Developing Integrated Marketing Communications