Deck 12: Promotion

Question 1

Online reviews of clinicians have been found to have little effect in terms of an individual's choice of a physician.

Answer 1

False

Question 2

The large majority of boomers are concerned with the accuracy of information on social media sites.

Answer 2

False

Question 3

Fear appeals in advertising have not been found to be very effective because consumers turn away from them because of their anxiety-producing effects.

Answer 3

False

Question 4

Moderate fear appeals have been found to be effective in inducing positive behavior change in low-involvement situations.

Question 5

The major challenge with using humor as an emotional approach in messaging is that this emotion is often specific to the individual.

Question 6

When considering the channel in the communication process, the major delineation is whether it is personal or done over the Internet.

Question 7

A problem with using the interpersonal channel of communication is the lack of total control.

Question 8

Health care has historically relied on opinion leaders in a word-of-mouth channel of communication.

Question 9

For communication to occur, a message must be decoded by the receiver the same way it was encoded by the sender.

Question 10

Noise in the channel of communication can be created by the sender or by the channel itself.

Question 11

The physician's gender has been found to have no effect on the patient-physician interaction.

Question 12

Patients of female physicians have been found to talk more.

Question 13

A hospital in a particular community has been very proactive about controlling their healthcare costs. Over the past month, the local newspaper has run a series of stories highlighting the rising cost of health care. When the hospital did a community survey on their image a month later, they were rated poorly on cost-effectiveness. In this example, channel noise was the problem, not the hospital's poor encoding process.

Question 14

The major advantage of the interpersonal channel is the immediacy of feedback.

Question 15

Advertising is any indirectly paid form of promotion of goods or services.

Question 16

A hospital offers a coupon in the newspaper for a free heart-healthy assessment for individuals over age 60 for 2 weeks after opening the new heart center. This is an example of a sales promotion strategy.

Question 17

The right message delivered to the correct audience is the major goal of any successful promotional strategy.

Question 18

Owned media are all media owned by third-party, for-profit organizations.

Question 19

When patients post a story about the great care they received at a medical group on their own Facebook page, this might be considered earned media.

Question 20

All of the following are unique key advantages of advertising in terms of control as part of the promotional mix: what is said, to whom it is said, when it is said, and why it is said.

Question 21

A major limitation of advertising over publicity is that advertising has credibility issues.

Question 22

When buyers are somewhat aware of the service or product and have financial resources, advertising can be most effective.

Question 23

Advertising can be very useful in the later stages of a product's life to begin bringing back declining sales by making more customers aware of the product or service.

Question 24

The less observable the tangible features are of a product or service, the more beneficial it may be to use advertising as a key component of the promotional mix.

Question 25

As media costs on television have risen dramatically, the cost per contact of advertising is far higher than personal selling.

Question 26

The more that individuals are involved in the decision to purchase a product or service, the greater the likelihood that personal selling over advertising may be a component of the promotional mix for the seller.

Question 27

E-detailing is classified as personal selling, although it occurs without face-to-face interaction between a customer and a salesperson.

Question 28

E-detailing can be defined as the asynchronous presentation of goods and services.

Question 29

Riskier product purchases require that advertising be a greater part of the promotional mix of the seller over personal sales in order to continue to send messages reassuring the potential buyer that there is little risk of purchase.

Question 30

In the actual purchase stage, personal sales are often more important than advertising.

Question 31

Personal sales play little role in the post-purchase stage with the buyer.

Question 32

The greatest weakness of publicity as a tool of the promotional mix is the lack of control over how the message is encoded and the timing of the message.

Question 33

Public relations has two important roles for healthcare organizations: promoting the good deeds that occur within the organization and crisis management.

Question 34

The major reason why health care has been hesitant to use sales promotion strategies is because of reimbursement requirements.

Question 35

For sponsorships to be effective, there should be a degree of congruence between the event and the organization.

Question 36

A common sales promotion used by the pharmaceutical industry is samples.

Question 37

Pharmaceutical companies give free samples to physicians, but research has shown that this has little impact in increasing prescriptions for the product.

Question 38

Hospitals no longer distribute free samples of formula to new mothers in maternity units because there was concern that some of the samples had been expired by the time of distribution.

Question 39

Pharmaceutical companies have increased the amount of sampling to physicians because the federal government has limited television advertising to consumers.

Question 40

Under Affordable Care Act regulations, the medical loss ratio required insurance companies to pay out at least 80% of their premiums annually in insurance claims.

Question 41

Physician sales forces are often used in the growth stage of the product life cycle.

Question 42

In a push strategy, the manufacturer tries to move their product by working with the intermediaries in the channel of distribution.

Question 43

Doctor-led discussion groups are an example of a push strategy by pharmaceutical companies.

Question 44

In a pull strategy, the intermediaries pull the customer to the manufacturer.

Question 45

A university academic medical center invites physicians in the region to a homecoming football weekend and a morning medical education conference (with continuing medical education credits for attendance). The purpose is to encourage referrals to the academic medical center by reinforcing relationships. This is an example of implementing the push strategy.

Question 46

In recent years, many pharmaceutical companies have changed their promotional strategies from a push to a pull strategy in terms of their communication approach in order to get physicians to write scripts for their brand of drugs.

Question 47

In an indirect competitive advertisement, a product or hospital compares itself:

A) to a direct named competitor, whether it is a brand or hospital.
B) to a leading brand or hospital in the region.
C) to all the best hospitals or brands in a category.
D) None of these is correct.

Question 48

Fear appeals can backfire when:

A) the spokesperson is not scary enough.
B) the message is so extreme that it is not credible.
C) the audience does not understand the source of the threat.
D) the target audience does not believe they can escape the threat being presented.

Question 49

Word-of mouth information from family and friends is referred to as:

A) earned media.
B) owned media.
C) buzz.
D) paid media.

Question 50

The major difference between channels is:

A) whether they are interpersonal or mass communication.
B) their cost.
C) their degree of interactivity.
D) All of these are correct.

Question 51

For communication to be effective:

A) it must be placed on the Web.
B) it must be translated by the receiver the same way it was encoded by the sender.
C) the channel must be efficient in the delivery of the message.
D) the noise filter must be effective in the monitoring process.

Question 52

The gender of the physician has been found to create differences in the patient interaction. Which dyad represents the greatest possible noise in the physician-patient relationship?

A) Female physician/female patient
B) Female physician/male patient
C) Male physician/male patient
D) Male physician/female patient

Question 53

Short-term inducements to buy a product or service are:

A) advertisements.
B) sales promotions.
C) sales presentations.
D) inducements.

Question 54

Advertising is distinguished from other promotional tools in that it is:

A) paid and nonpersonal.
B) nonpersonal and ongoing.
C) expensive and segmented.
D) segmented and nonpersonal.

Question 55

The ever-increasing fragmentation of communication in the channel has created the need for:

A) blogs and social media by healthcare organizations.
B) the utilization of earned media.
C) a holistic approach to communication planning.
D) integrated marketing communications strategies.

Question 56

The media that might be considered to have the highest form of credibility is:

A) paid.
B) owned.
C) earned.
D) created.

Question 57

When an advertiser pays for a message, they have control. Which element is not a factor over which they have control?

A) What is said
B) How often it is said
C) The attention it is paid
D) Where it is placed

Question 58

Which of the following factors is not a situation in which advertising can be effective?

A) Industry sales are declining.
B) Buyer awareness is minimal.
C) Service features are not observable.
D) Opportunities for differentiation are strong.

Question 59

When does advertising tend to work best?

A) When sales are declining
B) When most of the products are the same
C) When there is little chance for differentiation
D) When the service features are not observable

Question 60

Which of the following is not an advantage of personal selling over advertising?

A) It allows the organization to have more control over who sees its message.
B) Any misunderstanding of the message can be corrected.
C) It is the least costly form of promotion.
D) All of these are advantages.

Question 61

Personal selling is more often used in which product?

A) Where the customers are geographically dispersed
B) Where there is one primary decision maker
C) Where the product is technologically complex
D) Where there is little risk to the purchaser

Question 62

The DMU refers to which of the following?

A) Size of the defined market unit of customers
B) The decision-making unit involved in the purchase
C) Determination of market units in competitive situations for government determination of mergers in health care
D) Detailed markup units for personal sales composition

Question 63

If a product or service has significant risk in the purchase, an organization might allocate a greater percentage of its promotional budget toward:

A) personal sales.
B) advertising.
C) sales promotion.
D) Web-based strategies.

Question 64

In the prepurchase stage, which promotional tool plays a significant role in affecting or influencing the buyer?

A) Advertising
B) Personal sales
C) Advertising and personal selling
D) All of these are correct.

Question 65

Because the buyer often suffers from postpurchase anxiety:

A) the more messages sent to the buyer after the sale the better.
B) the more personal the contact with the buyer after the sale the better.
C) sending emails to the buyer with a survey can enhance postsales contact.
D) customer recovery is key.

Question 66

The greatest advantage of over advertising as a promotional tool is that it:

A) is inexpensive.
B) gets more attention.
C) is often repeated in the media.
D) has more credibility.

Question 67

Crisis management is one of the major roles that is addressed by:

A) public relations.
B) advertising.
C) personal selling.
D) all of the promotional tools.

Question 68

The greatest weakness to publicity as a promotional tool is that:

A) it relies on the effectiveness of the public relations director.
B) it cannot be done too often.
C) it is the indirect payment aspect that results in less control.
D) the target market is often too diffuse.

Question 69

Which of the following promotional tools is only useful as a supplemental aspect of the promotional mix?

A) Advertising
B) Public relations
C) Personal sales
D) None of these is correct.

Question 70

Negative information about an organization:

A) has no significant long-term consequences.
B) can affect the organization if its competitors react to the stories.
C) can affect the organization among higher-educated customers.
D) results in long-term negative consequences.

Question 71

The importance of using sales promotions in traditional industries is seen by the fact that:

A) little real dollars are allocated to this form of promotion.
B) more dollars are spent on sales promotion than advertising.
C) no real conclusion can be made, because it is industry dependent.
D) a significant amount is spent in consumer products as compared to industrial industries.

Question 72

The 80/20 standard requires that health insurers devote 80% of their premiums to medical services under healthcare reform. As a result, consumers are seeing which of the following?

A) Insurers placing the information on their website regarding their overhead percentage.
B) Insurers responding to blog post questions on overhead.
C) Cash rebates from insurers when the overhead is above the percentage standard.
D) Insurers paying a penalty to the government when the standard is not met.

Question 73

Which of the following is not an objective for event marketing?

A) Market share
B) Image enhancement
C) Brand awareness
D) Sales

Question 74

Which form of sales promotion is common in the pharmaceutical industry?

A) Samples
B) Premiums
C) Couponing
D) Cash rebates

Question 75

Sampling to physicians by pharmaceutical companies has been found to:

A) have no real effect on prescription writing for the drug.
B) increase the number of prescriptions written for the sampled drug.
C) have mixed results depending on the physician's age.
D) have an increased result among older physicians.

Question 76

For sampling to be effective, the:

A) consumer should want to try the product.
B) product should be easily accessible.
C) trial size should not be too large.
D) product or service should be noticeably better than the competition.

Question 77

A discount to a channel member based on some particular criterion is referred to as a(n):

A) incentive.
B) premium.
C) allowance.
D) trade preference.

Question 78

The concern with cooperative advertising programs is that:

A) they can violate HIPAA regulations.
B) they can be in violation of Stark rules.
C) they can violate the Clayton Act.
D) All of these are correct.

Question 79

In the introductory stage of the product life cycle, the major promotional objective is to:

A) gain publicity.
B) encourage primary demand.
C) capture the competitor's customers.
D) encourage selective demand.

Question 80

Primary demand refers to which of the following?

A) Demand for one product as opposed to the competing product
B) Demand for the product in the introduction stage but not the growth stage
C) Demand evidenced by the opinion leaders
D) Demand for the product class