Question 1

The difference between consumer sales promotion methods and trade sales promotion methods is

Accepted Answer

The key difference between consumer sales promotion methods and trade sales promotion methods is that consumer sales promotions aim to encourage direct purchases from consumers, while trade sales promotions aim to encourage purchases through wholesalers and retailers. Consumer sales promotions are focused on getting consumers to buy a product, while trade sales promotions are focused on getting wholesalers and retailers to buy a product and promote it to their customers.

Question 2

Which of the following is not an advantage of using coupons?

Accepted Answer

This statement suggests that consumers may feel that they always need an incentive to make purchases, which may not be advantageous for companies in the long run.

Question 3

____ are items offered free or at minimal cost as a bonus for purchasing a product.

Accepted Answer

Premiums are items offered free or at a minimal cost as a bonus for purchasing a product. Rebates are a partial refund of the purchase price, samples are small portions of a product given for free to encourage customers to try it, merchandise allowances are discounts offered by a manufacturer to retailers to encourage them to stock and promote their products, and coupons offer discounts on a product at the time of purchase.

Question 4

As Kashi tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Kashi decides to use ____, which are the most widely used form of consumer sales promotion.

Accepted Answer

Coupons are the most widely used form of consumer sales promotion, as they offer direct savings to the consumer and are easy to distribute through various channels such as newspapers, magazines, and online. Free samples and point-of-purchase displays are effective as well, but can be more costly and time-consuming to implement. Rebates and cents-off offers are also effective, but are not as widely used as coupons. Therefore, Kashi's decision to use coupons is a practical and effective choice.

Question 5

Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a

Accepted Answer

Trade sales promotion methods are specifically designed to encourage wholesalers and retailers to carry a producer's products and to market those products more aggressively. Examples of trade sales promotion methods include offering discounts, providing sales contests and incentives, and offering free merchandise. Options B, C, D, and E are all tactics that could be used in conjunction with trade sales promotions, but they do not specifically target wholesalers and retailers in the same way.

Question 6

Signs, counter pieces, racks, and self-service cartons are all forms of

Accepted Answer

Signs, counter pieces, racks, and self-service cartons are all examples of point-of-purchase displays, which are designed to attract consumer attention and encourage impulse purchases at the point of sale.

Question 7

The fact that customers may buy "forward," or buy large amounts that keep them supplied for many months, is a drawback of

Accepted Answer

Buying allowances are incentives given to retailers for buying a certain quantity of a product within a specified period. The drawback is that customers may "buy forward" and stock up on the product, reducing the need for future purchases and potentially hurting future sales.

Question 8

At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a

Accepted Answer

This is an example of a premium, as customers receive two free golf balls as an added incentive to purchase the twin pack of Wheaties cereal featuring Tiger Woods.

Question 9

On a break between classes, Linda checks her smartphone and enters her contact information on the Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a chance to participate in a

Accepted Answer

Linda is entering her contact information on the Publishers Clearing House site, which is known for running sweepstakes. Therefore, the best choice is E, sweepstakes. The other options, lottery (A), consumer contest (B), game of chance (C), and sales contest (D) do not accurately describe the type of competition that Linda is participating in.

Question 10

____ are offers of cash to customers who purchase a specific product, and ____ are offers of cash to customers who purchase a specific quantity of a specific product.

Accepted Answer

Rebates are offers of cash to customers who purchase a specific product, whereas money refunds are offers of cash to customers who return a product they have already purchased. Choice (A) 'Reimbursements' are not a common promotion type. Choice (B) 'Cents-off' refers to reducing the price of a product at the point of sale, but not with a cash offer. Choice (C) 'Premiums' are offers of an item for free or at a reduced price when a customer buys a product, not cash. Choice (D) 'Buy-back allowances' is an offer made by manufacturers to retailers to incentivize them to remove old or slow-moving products, not a cash offer to customers.

Question 11

If Birds Eye wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a

Accepted Answer

The answer of If Birds Eye wants to provide its...

Question 12

Which of the following is an example of a trade sales promotion method?

Accepted Answer

The answer of Which of the following is an example...

Question 13

Which of the following is most likely to stimulate customer loyalty?

Accepted Answer

Frequent-user incentives are most likely to stimulate customer loyalty because they reward customers for consistently using a product or service. Coupons and sweepstakes may encourage customers to make a purchase, but they do not necessarily create long-term loyalty. Samples and premiums may attract new customers, but they do not guarantee repeat business.

Question 14

To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a

Accepted Answer

Offering a free pound of bananas to customers who buy the large-size box of Chex cereal is a form of premium sales promotion. A premium is an incentive that consumers receive for purchasing a product, often offered as a free gift, reward, or add-on item.

Question 15

When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a

Accepted Answer

The sales promotion method described is a scan-back allowance. The manufacturer rewards retailers based on the number of pieces moved through their scanners, meaning the promotion is tied to a specific product and requires the retailer to scan it in order to receive the reward.

Question 16

Which of the following fosters cooperation during an initial sales promotion effort and stimulates repurchase afterward?

Accepted Answer

Buy-back allowances encourage retailers to restock products after an initial sales promotion, fostering cooperation and stimulating repurchase.

Question 17

Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a

Accepted Answer

The stamp card offered by Jamba Juice is a frequent-user incentive as it rewards customers for repeated visits/purchases. A free sample would be giving away a small portion of a product to entice consumers to try it, a rebate would involve giving money back after a purchase has been made, a premium would involve giving something extra with a purchase (such as a toy in a fast food kid's meal), and a consumer contest would involve some form of competition or challenge for customers to participate in.

Question 18

Coupons have questionable success as an incentive for consumers to try a new brand or product for all of the following reasons except

Accepted Answer

The statement "Coupons have questionable success as an incentive for consumers to try a new brand or product" is contradicted by the fact that coupons are successful in winning back former users and encouraging purchases in larger quantities. The rest of the answer choices provide reasons why coupons may not be effective for introducing new brands or products, but D provides a valid reason why coupons are still successful overall.

Question 19

Warren is a purchasing agent for Kellogg's. He is currently negotiating with his suppliers to receive a _______, which is a temporary price reduction to resellers for purchasing specified quantities of a product.

Accepted Answer

A buying allowance is a temporary price reduction offered to resellers for purchasing specified quantities of a product. This is the most appropriate option for a purchasing agent negotiating with suppliers for lower prices. Push money allowance, merchandise allowance, buy-back allowance, and discount are not the specific terms used for this type of discount.

Question 20

As a promotional strategy, using coupons strives to achieve all of the following except to

Accepted Answer

Using coupons primarily aims to increase sales volume, introduce new package sizes, prompt trial usage, and attract repeat users. Showing how a product is used is not a direct goal of coupon-based promotions; this objective is more aligned with demonstrations or instructional marketing materials.

Quiz 17: Personal Selling and Sales Promotion