Question 1

Agents of coupon-issuing manufacturers are known as _____.

Accepted Answer

Coupon-issuing manufacturers typically have redemption centers that handle the processing and reimbursement of their coupons. Clearinghouses are third-party companies that process coupons for multiple manufacturers, the Coupon Information Center (CIC) is a non-profit organization that fights coupon fraud, interchanges refer to the exchange of redeemed coupons between manufacturers and retailers, and interceptors is not a commonly used term in the coupon industry.

Question 2

In the classification of consumer-oriented sales promotions (Table 19.1)the cell that represents "Immediate Reward" and "Reinforcing Brand Image" (cell 5)is empty.Explain why this is the case.

Accepted Answer

The answer of In the classification of consumer-oriented sales promotions...

Question 3

The Oak Grove High School marching band needed to raise money so that they could participate in the Rose Bowl parade on New Year's Day.Band members collected coupons from friends and family and sold them to a person that paid them 50 cents for every pound of coupons collected.This person then sent these coupons to a clearinghouse through a retailer that took a cut of the money that was reimbursed.Unbeknownst to the students and parents participating in this fundraiser,they were actually participants in coupon _____.

Accepted Answer

The scenario describes a case of "misredemption," which is the practice of submitting coupons for reimbursement when they do not meet the terms and conditions of the offer. In this case, the coupons were collected from friends and family rather than being legitimately obtained through purchasing the products, which is a violation of most coupon redemption policies.

Question 4

With respect to couponing,_____ act(s)on behalf of retail clients by consolidating coupons before forwarding them and maintaining controls by ensuring that their clients sold products legitimately in the amounts they submitted for redemption.

Accepted Answer

Clearinghouses are the entities that consolidate coupons on behalf of retail clients and maintain controls by ensuring that their clients sold products legitimately in the amounts they submitted for redemption. Redemption centers are not responsible for consolidating coupons or maintaining controls, while the Coupon Information Center (CIC) deals with coupon fraud prevention and the Federal Trade Commission (FTC) and Securities and Exchange Commission (SEC) are government agencies that regulate business practices in different areas.

Question 5

Assume that you work in the marketing department for a manufacturer of gum.They have recently developed a brand of sugarless gum that keeps its flavor for an hour.The target market is teens.Discuss the various distribution methods used to deliver samples.Which do you recommend for this manufacturer?

Accepted Answer

The answer of Assume that you work in the marketing...

Question 6

Describe the coupon redemption process and how misredemption can occur.

Accepted Answer

The answer of Describe the coupon redemption process and how...

Question 7

Name and describe the types of rewards consumers receive when using sales promotions.

Accepted Answer

The answer of Name and describe the types of rewards...

Question 8

Brand managers may hire specialized _____ to perform sales promotion functions.

Accepted Answer

Promotion agencies specialize in executing sales promotion activities such as couponing, sampling, contests, and other short-term incentive programs.

Question 9

Individuals,or organizations of individuals,who either recruit the services of actual retailers to serve as conduits through which coupons are misredeemed,or operate phony businesses that exist solely for the purpose of redeeming huge quantities of illegal coupons are known as _____.

Accepted Answer

The term "professional misredeemers" describes individuals or organizations that engage in the illicit activity of misredeeming coupons either through recruiting actual retailers or operating phony businesses solely for this purpose. The other options are not an accurate description of these individuals or organizations.

Question 10

Explain how to calculate the return on investment for a sampling investment.

Accepted Answer

The answer of Explain how to calculate the return on...

Question 11

Which of the following parties can be involved in coupon misredemption?

Accepted Answer

All of the parties listed can potentially be involved in coupon misredemption. Consumers can intentionally or unintentionally misuse or duplicate coupons. Store clerks may improperly accept or deny coupons. Store management may not properly train staff or enforce coupon policies. Clearinghouses may not catch fraudulent or misused coupons during the redemption process.

Question 12

Assume that you work in the marketing department for a company that manufactures dog food.Explain why you think the use of coupons would be effective and what can be done to maximize the redemption rate.

Accepted Answer

The answer of Assume that you work in the marketing...

Question 13

Explain the circumstances when sampling is appropriate.

Accepted Answer

The answer of Explain the circumstances when sampling is appropriate....

Question 14

Which conditions and/or restrictions must be met for a consumer to be entitled to the coupon discount?

Accepted Answer

All of these conditions and/or restrictions must be met for a consumer to be entitled to the coupon discount. The consumer must buy the merchandise specified on the coupon in the size, brand, and quantity directed, only one coupon can be redeemed per item, cash may not be given for the coupon, and coupons must be redeemed before the expiration date.

Question 15

Retailers redeem coupons by sending them to _____.

Accepted Answer

Retailers typically redeem coupons by sending them to a clearinghouse, which will reimburse the retailer for the value of the coupon. The clearinghouse then sends the redeemed coupons to the manufacturer for reimbursement.

Question 16

Sarah likes to save money using coupons.On one shopping trip,she used a coupon that allowed her to receive one dollar off of the purchase price of a 16 ounce container of body lotion.However,she purchased a 10 ounce container of this lotion,and the cashier did not notice the difference.This is an example of coupon _____.

Accepted Answer

This situation is an example of coupon misredemption, where a coupon is used incorrectly, either intentionally or unintentionally, due to a mistake or oversight.

Quiz 19: Consumer Sales Promotion: Sampling and Couponing