Question 1

When Allyn went to get his newspaper, he found the paper in a plastic bag along with a box containing one dose of Alka-Seltzer Heartburn Relief medication. In this example, which type of sales promotion is Alka-Seltzer using?

Accepted Answer

Alka-Seltzer is using a sample as a sales promotion by including one dose of their product in the plastic bag with the newspaper.

Question 2

A Taste of Greece, a restaurant chain that is known for its Extra Juicy Gyro sandwich, wants to encourage repeat purchases and create long-term customers. Which sales promotion should it employ?

Accepted Answer

A trading stamp program that rewards customers for repeat purchases is more likely to encourage long-term loyalty compared to one-time promotions like a two-for-one deal or a free soft drink coupon. A game with food prizes may attract customers, but it is not a guaranteed way to create repeat purchases or long-term customers. The free samples at local fairs and concerts may attract new customers, but it is unclear if they will return for a full-priced purchase.

Question 3

The consumer sales promotion that involves the use of a brand-name product in a movie, television show, video, or a commercial for another product is referred to as(a) __________.

Accepted Answer

This is known as product placement. It involves featuring a brand-name product in various forms of media entertainment or promotional materials to increase its visibility and appeal to consumers. It is often seen as a way of integrating the product into the daily lifestyles of consumers.

Question 4

A sales promotion prominently displayed in a store aisle is called a(n) __________ display.

Accepted Answer

A point-of-purchase display (or POP display) is usually placed next to the register or checkout area, where customers are most likely to make an impulse purchase. It is meant to attract attention and promote specific products or offers. Other choices such as seasonal, interactive, and product sampling may also be types of POP displays, but they do not specifically refer to a sales promotion displayed in a store aisle. Automated displays may be used to enhance the effectiveness of POP displays, but they are not the same thing.

Question 5

Virgin Mobile recently offered T-Mobile customers a __________ of $100 when they switched their service during a seven-week period.

Accepted Answer

The term "rebate" refers to a refund or discount offered by a company to encourage customers to make a purchase or switch to their service. In this case, Virgin Mobile is offering $100 as a rebate to T-Mobile customers who switch to their service, so option D is the best choice. The other options don't quite fit the context - premium suggests an added feature or cost, coupon implies a discount offered before the purchase, and student incentive refers to a promotion targeting students. Option B could work, but rebate is a more specific and accurate term.

Question 6

A sales promotion designed to encourage and reward repeat purchases by acknowledging each purchase by a consumer and offering a premium as purchases accumulate is referred to as

Accepted Answer

The given sales promotion technique is a loyalty program, which is designed to encourage customers to make repeat purchases and reward them with premiums or other benefits as their purchases accumulate over time. Option A, merchandise deal, focuses on offering discounts or other incentives on specific products or services, Option B, product enhancement, refers to improving the quality or features of a product or service, Option D, retail positioning, refers to the strategic placement of products in a store to maximize sales, and Option E, experiential decoding, is not a recognized term in marketing or sales promotion.

Question 7

Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks, but the manufacturer believes customers are not buying the product as predicted because they are unfamiliar with calzones. The manufacturer is interested in employing a sales promotion technique that will communicate the ease of preparation and encourage customers to try the product. Which method would it most likely employ?

Accepted Answer

Hiring a demonstrator to prepare the snack in a grocery store and providing free samples is the most effective method to communicate the ease of preparation and encourage customers to try the product. This allows customers to taste the product and see how easy it is to prepare, providing a firsthand experience that cannot be conveyed through advertising or a sign. Providing a premium or rebate may provide short term benefits but may not necessarily encourage repeat purchases or long term customer loyalty. While advertising can be effective, it may not reach all potential customers and may not convey the ease of preparation as effectively as a demonstration.

Question 8

Sales promotions where the consumer is offered the product free or at a greatly reduced price are referred to as

Accepted Answer

The answer of Sales promotions where the consumer is offered...

Question 9

Taco Bell introduced its Doritos Locos Tacos by giving away millions of free tacos. In this example, Taco Bell used a sales promotion technique called

Accepted Answer

Taco Bell used the sales promotion technique of sampling by giving away millions of free Doritos Locos Tacos to attract new customers and encourage people to try their new product.

Question 10

After the release of the movie E.T., sales of Hershey's Reese's Pieces soared while Mars, the makers of M&M'S and whose candies were featured in the earlier book, regretted not permitting its product to be used in the film. The appearance of the candy in the film is an example of __________.

Accepted Answer

The appearance of the candy in the film is an example of product placement, which is a form of advertising where branded products or services are featured in movies, TV shows, or other forms of media. In this case, Hershey's Reese's Pieces benefited from the exposure in the movie, while Mars missed out by refusing to participate.

Question 11

The most popular loyalty programs today are __________ reward programs.

Accepted Answer

Credit card reward programs are the most popular loyalty programs today. They offer rewards such as cashback, points, and miles for various purchases made with the card. These programs are used by a wide range of consumers, unlike the other options which are more specific to certain industries (e.g. airline travel for frequent flyers).

Question 12

-Tom Cruise wore Bausch and Lomb's Ray-Ban sunglasses in the movie Risky Business, and sales skyrocketed. The appearance of the sunglasses in the film is an example of __________.

Accepted Answer

The answer of 
-Tom Cruise wore Bausch and Lomb's Ray-Ban...

Question 13

Product placement refers to

Accepted Answer

Product placement refers to the use of a brand-name product in a movie, television show, video, or a commercial for another product as a form of consumer promotion.

Question 14

Marketing firm Valassis created and managed a Nutella promotion to induce trial of the product. Nutella is a creamy, chocolaty, hazelnut spread that has been imported into the U.S. from Italy. A Valassis polybag containing a 20-gram "Coppetta" packet of Nutella spread, a cracker, a Nutella coupon, and a product brochure that were delivered to consumers' doors via the Sunday newspaper. What type of sales promotion was used here?

Accepted Answer

A sample was used to induce trial of the product. Consumers received a small packet of Nutella spread to try, along with a coupon and brochure to encourage further purchase.

Question 15

-As shown in the McDonald's Sales Promotion Image above, McDonald's partners with Hasbro each year to offer a Monopoly sales promotion. Customers who purchase selected menu items receive two tokens that correspond to the properties on the popular game board. If a set of tokens matches the color-coded properties, customers will win cash prizes of up to $1 million. Customers may also win "Instant" prizes redeemable for specific food or drink items. What is this popular sales promotion called?

Accepted Answer

This promotion is called a sweepstakes because it involves a chance-based method of winning prizes, where customers receive tokens with their purchases and can win prizes based on matching sets or instant wins.

Question 16

The Nabisco created a free-standing rack in the shape of a bus for its Ritz and other cracker products. The goal of the sales promotion was to maximize the consumers' attention to lunch box and after-school snacks. The "bus," which provided storage for the featured products, was placed in a high-traffic area of U.S. grocery stores. This type of sales promotion is referred to as a __________.

Accepted Answer

The type of sales promotion described is a point-of-purchase display. This refers to any promotional material or product display that is located near or at the checkout counter or other high-traffic areas in retail stores. These displays are designed to grab the attention of shoppers and encourage impulse purchases.

Question 17

Sampling is an appropriate strategy for which type of products?

Accepted Answer

Sampling is a good strategy for new products because it allows consumers to try the product without committing to a purchase. This can help generate buzz and word-of-mouth referrals for the new product.

Question 18

Hewlett Packard recently offered consumers a __________ of $100 when they purchased an HP computer and printer together.

Accepted Answer

The given offer of $100 is given back to the consumer after the purchase of an HP computer and printer. This is a classic example of a rebate, where the consumer receives a partial refund after the purchase of the product. A premium, deal, coupon or student incentive are not applicable in this context.

Question 19

Trade promotions refer to

Accepted Answer

Trade promotions are sales tools used to support a company's advertising and personal selling efforts directed to wholesalers, distributors, or retailers. These promotions could include discounts, allowances, contests, and other incentives to encourage retailers or wholesalers to stock and sell their products. They are not directed towards ultimate consumers but towards intermediaries in the distribution channel.

Question 20

In the film Runaway Bride, Julia Roberts boarded a FedEx truck. Another actor gave voice to FedEx's service guarantee, saying she will arrive "by 10 a.m. the next business day." This is an example of __________.

Accepted Answer

This is an example of product placement, where a brand or product is featured in a film or TV show for promotional purposes. In this case, FedEx was featured prominently as a mode of transportation for the main character.

Quiz 15: Advertising, Sales Promotion, and Public Relations