Question 1

Maddie's Beverage Company has recently introduced Wateroos,eight-ounce servings of water in juice-style containers with straws.You are responsible for the new product's sales promotion.Your objectives are to encourage product trial and repurchase,encourage brand switching to Wateroos,and increase the amount of product purchased by current customers.You have used coupons in the past but found that many were sent to homes that were childless.What might you want to do to reach consumers who have an interest in your product?

Accepted Answer

Some companies are experimenting with coupons on the Internet for a better redemption rate.

Question 2

Seagram's Coolers has asked bartenders to submit cocktail recipes to its website.From these entries,the winning recipe will be selected.What is the term that best describes this?

Accepted Answer

Contests are promotions in which participants use some skill or ability to compete for prizes.

Question 3

Which of the following statements best describes contests and sweepstakes?

Accepted Answer

Contests require participants to have some skill.Sweepstakes are based on chance.Neither contests nor sweepstakes can be used if the marketer's objective is to create a long-term relationship with its customers,though they may generate short-term interest.

Question 4

What are cobranded credit cards used in conjunction with?

Accepted Answer

Cobranded credit cards are usually used in conjunction with loyalty marketing programs. These programs are designed to reward customers for their loyalty to a particular brand or company. Cobranded credit cards enable customers to earn rewards points or cash back when they make purchases using the card, which they can then redeem for rewards offered by the company. This encourages customers to continue using the card and to remain loyal to the brand, hence the partnership between the credit card company and the brand.

Question 5

What is the term for a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods?

Accepted Answer

A trade allowance is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers, in exchange for performance of specified functions or purchasing during special periods. This could include cooperative advertising, shelf space, or other forms of promotion. It is different from a quantity discount, which is based on the volume of goods purchased, or a point-of-purchase discount, which is offered to consumers at the time of sale. Pull money refers to funds provided by manufacturers to help stimulate demand for their products, typically through advertising or promotions.

Question 6

Which of the following statements best describes online sales promotions?

Accepted Answer

Customer loyalty programs are very effective on Internet sites to build customer loyalty.Sampling is a sales promotion option that can be effectively used by Internet businesses.Online coupons have a higher redemption rate than offline ones.

Question 7

What is one of the best methods for creating and rewarding brand loyalty among consumers who might otherwise switch to competing brands?

Accepted Answer

Loyalty marketing or frequent buyer programs induce brand loyalty by rewarding customers for multiple purchases.

Question 8

Why did manufacturer of Claritin,a drug for allergy sufferers that was designed to not make them sleepy,give physicians free samples of the drug?

Accepted Answer

A sample allows the consumer to try the product without investing any money or having a full-size container.

Question 9

Which of the following is NOT an example of a point-of-purchase promotion?

Accepted Answer

Newspaper inserts are not typically considered point-of-purchase promotions, as they are distributed outside of the retail environment and are not directly tied to a purchase decision at the point of sale. The other options are all examples of point-of-purchase promotions, as they are designed to influence consumers at the moment when they are making purchase decisions in-store.

Question 10

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products.Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen.What is this an example of?

Accepted Answer

Contests are promotions in which participants use some skill or ability to compete for prizes.

Question 11

Whenever Hugo buys a soft drink at his nearby convenience store,he gets a stamp for the card that he carries in his wallet.When he has eight stamps,he can exchange the card for a free drink.What is this an example of?

Accepted Answer

A frequent buyer program rewards loyal customers for multiple purchases.

Question 12

Rogers Cable mailed 15,000 small business owners in and around Toronto a CD called 100+ Essential Web Sites for Small Business Owners that lists and links the top websites on improving retail sales.All of the businesses are prospects for Roger's cable-based service.Rogers hopes that recipients of the CD will view this as just one of many useful services Rogers can provide them.What is this CD an example of?

Accepted Answer

Sampling allows a consumer to try a new product risk-free.

Question 13

Which of the following are promotional exhibits targeted to consumers and set up at the retailer's location to build traffic,advertise the product,or induce impulse buying?

Accepted Answer

Point-of-purchase displays are specifically designed to attract consumers at the retailer's location and encourage impulse buying, making it the best choice for the given description. Trade shows are not set up at retailer locations and target industry professionals, while direct demonstrations and freestanding kiosks can be used in various settings, not just at retailers.

Question 14

Montana's Best is a new precooked meal-in-a-bag product made from bison meat.The company is having difficulty gaining consumer acceptance of its bison products even though bison is high in protein and low in cholesterol,fat,and calories.Those who have tried the meat have agreed that it is tender and as delicious as any choice steak,and it is less expensive.Montana's Best should focus on which of the following sales promotion tools?

Accepted Answer

Sampling allows the consumer to try a product risk-free.

Question 15

What is the objective of a loyalty marketing program?

Accepted Answer

Sales promotions are more efficient at changing behaviour than attitudes.

Question 16

Schwinn Cycling and Fitness,Inc. ,is offering a chain of sporting goods superstores a 20 percent discount on all Schwinn bicycles if the stores will run their own special promotion on the new Schwinn Paramount Titanium bikes.What is Schwinn offering?

Accepted Answer

A trade allowance is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers,in exchange for performance of specified functions or purchasing during special periods.

Question 17

What do point-of-purchase promotions work best for?

Accepted Answer

Point-of-purchase promotions are most effective for impulse items.

Question 18

What is one of the major advantages to using point-of-purchase promotion?

Accepted Answer

Some examples of this consumer promotion are very expensive and,like most sales promotions,it is not designed to create a long-term relationship.P-O-P displays can be expensive.See examples in your text.

Question 19

Under a partnership agreement between HarperCollins and Sutter Home Winery,consumers can visit the Sutter Home website monthly to learn which book and which wine are being featured.Each visit to the website qualifies the consumers for the opportunity to take their reading group for a weekend stay at the Sutter Home Victorian Inn and free books from HarperCollins.Since there is no skill involved,how will this prize package be awarded?

Accepted Answer

Sweepstakes depends on chance or luck,and participation is usually free.

Question 20

Which type of strategy do trade sales promotions support?

Accepted Answer

Trade promotions push a product through the distribution channel.

Quiz 17: Sales Promotion and Personal Selling