Deck 12: Sales Promotions

Question 1

A cross-ruffing coupon is placing a coupon for one product on another product.

Answer 1

True

Question 2

Coupons issued following requests by a consumers are called scanner-delivered coupons.

Answer 2

False

Question 3

A bounce-back coupon is placed inside a package so it cannot be redeemed immediately.

Answer 3

True

Question 4

A scanner-delivered coupon is often given for a competing brand to encourage brand-switching.

Question 5

An instant redemption coupon may lead to a trial purchase because the customer has immediate access to the discount.

Question 6

FSI stands for Full Standing Inventory,which means the ad campaign is complete.

Question 7

The major source of counterfeiting today is copying black-and-white coupons from newspapers.

Question 8

A scanner-delivered coupon is sent out by the Internet.

Question 9

Customers who already have a preference for a brand redeem the majority of all coupons.

Question 10

The majority of coupons are sent out through print media.

Question 11

A coupon is a price reduction offer to a consumer.

Question 12

A coupon for peanut butter on a jar of jelly is a cross-ruff coupon.

Question 13

The majority of coupons are issued by retailers.

Question 14

FSI,or Free Standing Inserts,are the most common method used to deliver coupons to consumers.

Question 15

Placing a coupon for French Onion dip on a bag of potato chips is called a bounce-back coupon approach.

Question 16

Mass-cutting is redeeming coupons that have never been submitted to a retailer as part of a sale.

Question 17

Mass-cutting,counterfeiting,and misredemptions are three common problems with coupons.

Question 18

An instant redemption coupon is sent out through print media.

Question 19

Bounce-back coupons tend to encourage trial purchases of products.

Question 20

Trade promotions are used by manufacturers and other members of the marketing channel to help push products through to retailers.

Question 21

The primary goals of contests and sweepstakes are to encourage customer traffic and boost brand switching behavior.

Question 22

To encourage consumers to continue playing a contest,the intrinsic value of prizes can be steadily increased by allowing small,incremental rewards.

Question 23

Premiums are normally much more successful than coupons in increasing sales and profits.

Question 24

A self-liquidating premium is one in which the consumer pays some money for the gift or item.

Question 25

When a company offers a premium,consumers pay full price for the good or service.

Question 26

Refunds and rebates are cash returns offered to consumers or businesses following the purchase of a product.

Question 27

A sporting goods store offering a free golf bag with the purchase of three or more golf clubs is an example of a self-liquidating premium

Question 28

Premiums are prizes or gifts consumers receive when purchasing products.

Question 29

In a contest or sweepstake,an intrinsic value is the challenge or fun in playing the game or in participating.

Question 30

Retailers are usually not involved in mass-cutting or misredemption of coupons.

Question 31

Refunds are paid on soft goods; rebates are paid on hard goods.

Question 32

Building a successful premium requires matching the premium to the target market.

Question 33

Free-in-the-mail premiums are gifts individuals receive for purchasing products by providing some form of proof of purchase.

Question 34

A contest requires the use of a skill while a sweepstakes relies on random chance.

Question 35

Some marketing experts believe overuse of premiums can damage a brand's image,while the use of coupons can actually enhance a brand's image.

Question 36

A free toy placed inside a package of cereal is an example of an in- or on-package premium.

Question 37

Redeeming a coupon for the wrong size of an item is a problem called misredemption.

Question 38

In a contest or sweepstakes,the extrinsic value is the value of the prize itself to the consumer.

Question 39

The consumer is typically required to make a purchase when entering a sweepstakes.

Question 40

A major advantage of using the Internet for a contest is that individuals can participate in the contest for its intrinsic value.

Question 41

Shania received a sample of a new tea drink when she attended a football game in Miami.This is an example of selective sampling.

Question 42

Bonus packs can lead to brand switching if the consumer has used the brand previously.

Question 43

In recent years,marketers have increased the use of free standing inserts (FSI)for the distribution of samples.

Question 44

Retailers use price-offs to encourage brand switching and to reward current customers for their loyalty.

Question 45

When one or more extra items are place in special product package,it is called a bonus pack.

Question 46

Instant redemption coupons are a form of direct sampling.

Question 47

The primary disadvantage of sampling is the cost,both of producing the sample and for distributing the sample.

Question 48

In-store sampling is a program in which samples are given directly to consumers in a retail store.

Question 49

Refunds and rebates suffer the disadvantages of costs,paperwork,and diminished effectiveness.

Question 50

Price-offs are excellent at stimulating sales of an existing product.

Question 51

A bonus pack works best for current customers.

Question 52

Many rebate programs are more effective because consumers get excited about them and this leads them to wait patiently until one is offered before making a purchase.

Question 53

A consumer who purchases additional product because of a price-off tends to either consume more or delay a future purchase of the product.

Question 54

Price-offs can encourage customers to switch brands in brand parity situations or when the consumer has a high level of brand loyalty to another brand.

Question 55

Direct sampling a dryer sheet attached to or in a box of laundry detergent is a form of response sampling.

Question 56

For products that have used rebates consistently,such as automobiles,many consumers will no longer purchase the product unless a rebate is offered.

Question 57

For ongoing products in highly competitive markets,a bonus pack is an effective method of maintaining brand loyalty and reducing brand switching at a minimal cost.

Question 58

It is not possible to offer sampling programs over the Internet.

Question 59

For some products,such as automobiles,increasing the amount of a rebate no longer seems to spur additional sales activity,but discontinuing or reducing the rebate level tends to have an immediate negative impact on sales.

Question 60

Direct sampling is a program in which samples are given directly to consumers in a retail store.

Question 61

The most controversial form of trade allowance is a drop-ship allowance.

Question 62

Manufacturers spend more on trade promotions than on either consumer promotions or advertising.

Question 63

Brand-loyal consumers purchase only one particular brand and do not respond to consumer promotions unless it is for their particular brand.

Question 64

Price-sensitive consumers regularly respond to consumer promotions,such as coupons,price-off deals,and premiums.

Question 65

Price-based consumer promotions are designed primarily to either attract new customers or to boost sales.

Question 66

Slotting fees are utilized to reduce prices on large shipments of goods to a retail chain.

Question 67

Intercompany tie-ins are the promotion of two different products from the same company using one consumer promotion.

Question 68

Slotting fees are funds charged by retailers to stock new products.

Question 69

Consumer promotions are for end-users and customers while trade promotions are for channel members.

Question 70

A trade allowance is a financial incentive offer made to other channel members to motivate them to make a purchase.

Question 71

Examples of trade allowances include slotting fees,exist fees,off-invoice allowances,and drop-ship allowances.

Question 72

Intracompany tie-ins are the promotion of two different products from different companies using one consumer promotion.

Question 73

A trade promotion is a physical product sent as part of a promotional deal.

Question 74

The majority of major retailers charge slotting fees.

Question 75

An off-invoice allowance is money paid to a retailer who is willing to bypass wholesalers.

Question 76

For brand-loyal consumers,consumer promotions can be crafted to both boost sales and reinforce the firm's image.

Question 77

To be successful,a price-off should feature a monetary appeal to consumers and provide consumers with an immediate reward.

Question 78

A retailer will support a manufacturer's consumer promotion program if the program will increase traffic into the retail store,boost store sales,attract new customers,or increase the basket size of shoppers in the store.

Question 79

An overlay combines two or more consumer promotional activities into a single campaign.

Question 80

More money is spent on off-invoice allowances than any other form of trade promotion.