Question 1

Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell?

Accepted Answer

Forward buying is the practice of purchasing a greater quantity during a sales promotion period than can immediately be sold. This is done in order to take advantage of the lower promotional price and create a stockpile to be sold at a higher price once the promotion is over. Diverting refers to the sale of products intended for one market in another market, panic buying is a sudden, unplanned buying spree, straight rebuy refers to the routine purchase of products previously bought from a particular supplier, and buyout refers to the purchase of an entire company or a large percentage of its shares.

Question 2

________ are certificates that entitle the bearer to a stated saving on the purchase of a specific product.

Accepted Answer

Coupons entitle the bearer to a stated saving on the purchase of a specific product. Samples are a small amount of a product given out for free to encourage trial, rebates involve the customer receiving a refund after purchase, price packs offer a reduced price for buying multiple units, and premiums are items given for free or at a reduced cost with the purchase of a product.

Question 3

________ begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers.

Accepted Answer

Sell-in time refers to the period from the promotional launch until approximately 95% of the deal merchandise is in the hands of consumers. It refers to the time taken to sell the merchandise to the retailers or distributors who will then sell it to the end consumers.

Question 4

Becoming part of a personally relevant moment in consumers' lives through ________ can broaden and deepen a company or brand's relationship with the target market.

Accepted Answer

Events and experiences allow a company or brand to connect with consumers on a more personal level, creating a memorable and emotional connection. This can lead to a deeper and more meaningful relationship with the target market. Advertisements, sales promotions, public relations, and direct marketing efforts may not have the same level of personal relevance or emotional impact.

Question 5

________ is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy.

Accepted Answer

Free trial is a consumer promotion tool that allows prospective purchasers to try the product for free. The aim is to encourage them to purchase the product after trying it. Sampling may also involve giving out free products, but the focus is on giving consumers a taste of the product to generate interest rather than an extended period of use like a free trial. Premiums, cross-promotion, and rebates are all different types of consumer promotions that may not involve offering free products for trial.

Question 6

Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in non-deal regions?

Accepted Answer

Diverting involves buying products in a region where a manufacturer offers a promotion deal and shipping them to another region to sell at full price. This practice may involve buying more than needed for the promotion deal and diverting the excess products to non-deal regions. Panic buying and hoarding refer to buying large quantities of products due to sudden fear or concern, while stockpiling and forward buying refer to purchasing and storing products in advance at a lower price for future use or resale.

Question 7

________ is the time necessary to prepare a promotional program prior to launching it.

Accepted Answer

Lead time refers to the time required to prepare a promotional program before launching it. This includes activities such as developing the creative concept, designing the artwork, obtaining approvals, coordinating with suppliers, and ensuring that the campaign is aligned with the overall marketing strategy. Effective management of lead time is crucial to the success of a promotional program, as it allows sufficient time for testing, refining, and executing the campaign, and minimizes the risk of errors or delays.

Question 8

Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events?

Accepted Answer

The most likely objective for Rolex's sponsorship deal with these events is to increase the salience of the company or product name. By calling itself the "Official Timekeeper", Rolex is able to associate its brand with prestigious events and increase the visibility of its name among the target market of tennis enthusiasts and sports fans.

Question 9

Premiums, as a consumer promotion tool, are defined as ________.

Accepted Answer

Premiums are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. Options A and B refer to discounts and coupons, while options C and E refer to loyalty programs and rewards.

Question 10

Which of the following is a sales promotion tool that is consumer franchise building in nature?

Accepted Answer

The answer of Which of the following is a sales...

Question 11

Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events?

Accepted Answer

The most likely objective of Mountain Dew's sponsorship of adventure events is to create perceptions of key brand image associations, such as excitement, energy, and adventure. These events provide a platform for Mountain Dew to showcase its brand to a relevant audience and align its brand with the values and lifestyles of its target consumers.

Question 12

A ________ is a salesforce promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed.

Accepted Answer

A sales contest is specifically designed to motivate the sales force or dealers to increase their sales results over a stated period in order to win prizes. Trade shows, frequency programs, sweepstakes, and patronage awards are all different types of sales promotion tools, but they do not necessarily involve inducing the sales force to increase sales.

Question 13

Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand?

Accepted Answer

Cross-promotion involves using one brand to advertise another noncompeting brand, which is the only option given in the choices. Tie-in promotion typically involves two or more brands collaborating on a promotion or product, frequency programs reward customers for repeat purchases, specialty advertising involves giving away branded merchandise, and patronage awards reward customers for their loyalty to a specific brand.

Question 14

Which of the following is a sales promotion tool that typically does not build brand image?

Accepted Answer

Consumer refund offers typically focus on incentivizing consumers to purchase the product by offering a partial or full refund if they are not satisfied. While this can drive short-term sales, it does not necessarily build long-term brand image as it does not highlight the unique features or benefits of the product. The other options (B, C, D, E) all have the potential to build brand image by providing consumers with a positive experience and exposure to the product.

Question 15

________ are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop.

Accepted Answer

Rebates are specifically mentioned as promotion tools that provide a price reduction after purchase, rather than at the retail shop. The other options may provide a price reduction at the retail shop, but not necessarily after purchase.

Question 16

Which of the following is an example of a manufacturer promotion?

Accepted Answer

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

Question 17

According to consumer-packaged goods companies, which of the following effects is attributed to the heavy use of sales promotion?

Accepted Answer

Heavy use of sales promotion tends to increase price sensitivity among consumers, who then become more likely to switch between brands depending on promotions and discounts being offered. This can lead to a short-term boost in sales but may hinder brand loyalty in the long run.

Question 18

________ are consumer promotion offers to consumers of savings off the regular price of a product, flagged on the label or package.

Accepted Answer

Price packs are offered to consumers as a discount off the regular price of a product, which is flagged on the label or package. Coupons are vouchers that offer a discount when presented at the time of purchase. Rebates are offers to consumers of money back after a purchase has been made. Premiums are gifts or prizes offered as an incentive for purchasing a product. Samples are free products given to consumers to try before purchasing the full-sized product.

Question 19

Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer?

Accepted Answer

Samples are a consumer promotion tool that offers a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer. Coupons offer a price discount on a product, rebates offer money back after purchase, premiums offer a gift with purchase, and price packs offer a discounted price for buying multiple units.

Question 20

Which of the following consumer promotion tools refers to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period?

Accepted Answer

Product warranties refer to the promises made by sellers regarding the performance and functionality of the product, as well as offering solutions such as refunds or repairs if the product fails to meet expectations within a certain time frame.

Quiz 18: Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations