Question 1

Keely was invited to examine a free copy of a new magazine called Coastal Living.If she did not enjoy the magazine,she could write "Refused" on the invoice for her subscription,which would arrive about three weeks after the free magazine.The magazine's publisher was using ________.

Accepted Answer

The publisher is using sampling, which is a form of direct marketing where free samples are given to potential customers in order to persuade them to purchase the product. This is essentially what is happening here, as Keely is being given a free copy of the magazine in the hopes that she will enjoy it enough to subscribe. If she does not enjoy it, she can refuse the subscription.

Question 2

Most consumer sales promotions temporarily change the price/value relationship.

Accepted Answer

Most consumer sales promotions offer temporary discounts or additional value to customers, which changes the usual price/value relationship of a product or service.

Question 3

A merchandising allowance is a discount to a wholesaler or retailer based on the order volume of a product.

Accepted Answer

The answer of A merchandising allowance is a discount to...

Question 4

A retail salesperson at a department store cosmetics counter gets five dollars every time he sells a bottle of a certain brand of cologne.Explain the type of trade promotion that is being used in this instance.

Accepted Answer

The answer of A retail salesperson at a department store...

Question 5

Toro ran a clever preseason promotion on some of its snow blower models,offering some money back if the snowfall in the buyer's market area turned out to be below average.This is an example of a ________.

Accepted Answer

The promotion offered money back, which is a rebate. The other options do not involve the offer of money back or a refund.

Question 6

An example of a(n)________ is a five-foot-high cardboard display of Cap'n Crunch next to Cap'n Crunch cereal boxes.

Accepted Answer

The description provided matches the definition of a point of purchase (POP) display, which is a promotional tool used to attract customers' attention to a product or brand at the point of sale (such as a retail store). POP displays can include cardboard cutouts, banners, posters, or other creative visual aids designed to capture shoppers' interest and encourage them to make a purchase. In this case, the Cap'n Crunch display is strategically placed near the Cap'n Crunch cereal boxes, making it more likely that customers will notice the product and be enticed to buy it.

Question 7

Quaker Oats inserted $5 million worth of gold and silver coins in Ken-L Ration dog food packages.This is an example of a contest.

Accepted Answer

This is not an example of a contest, as there is no indication that customers had to take any action or compete with each other to win the coins. It is an example of a promotional offer or incentive.

Question 8

________ involves a channel member purchasing large quantities of a product during a discount period,warehousing the product,and not buying the product again until another discount is offered.

Accepted Answer

This is known as forward buying, where a channel member purchases a product in bulk during a discount period and stores it until the next discount period. This can disrupt the regular flow of products through the channel and can have implications for inventory management and cash flow.

Question 9

A trade show is a way for a company to do all of the following EXCEPT which one?

Accepted Answer

A trade show is a marketing strategy for companies to showcase their products, distribute literature, give away sample products, and establish new business contacts with potential customers and partners. Companies do not typically use trade shows as a platform to pay a bonus to their salesforce.

Question 10

A traditional advertising medium can be used to publicize a sales promotion.

Accepted Answer

Traditional advertising mediums such as newspapers, radio, and television can be used to promote sales promotions to a wide audience.

Question 11

A customer has a piece of paper that states that he will receive five dollars off the selling price if he purchases a certain brand of teeth whitening strips.What sales promotion technique is being offered to this customer?

Accepted Answer

The answer of A customer has a piece of paper...

Question 12

Declining brand loyalty has led marketers to place less of their total marketing communication budgets in sales promotions.

Accepted Answer

Declining brand loyalty has often led marketers to increase their investment in sales promotions as a way to incentivize purchases and temporarily boost sales, rather than decreasing their budget allocation for such activities.

Question 13

What are the basic differences between sales promotion and advertising?

Accepted Answer

The answer of What are the basic differences between sales...

Question 14

________ involves a retailer buying a product at a discounted promotional price,warehousing it,and after the promotion has expired,selling the inventory to other retailers at a price that is lower than the manufacturer's nondiscounted price but high enough to turn a profit for the retailer.

Accepted Answer

Diverting involves purchasing products at a discounted price during a promotion, storing them, and then selling them to other retailers after the promotion ends, at a price lower than the regular price but still profitable.

Question 15

Which of the following types of sales promotions would NOT be offered to a final consumer?

Accepted Answer

Push money is a type of sales promotion offered to intermediaries or salespeople, not to final consumers. Rebates, bonus packs, sweepstakes, and premiums are all types of sales promotions that can be offered to final consumers.

Question 16

An office supply store that pays a discounted price when it orders more than 12 metal filing cabinets is receiving a(n)________.

Accepted Answer

The answer of An office supply store that pays a...

Question 17

Which of the following is a discount to the retailer or wholesaler based on the volume of product ordered?

Accepted Answer

A case allowance is a discount given to the retailer or wholesaler based on the volume of product ordered. Merchandising allowance is a discount given for promoting a specific product, forward buying allowance is a discount given for ordering products in advance, push money refers to a bonus given to salespeople for selling certain products, and an incentive program is a broader term that can include various types of rewards or discounts for meeting certain targets or goals.

Question 18

Explain the difference between the practices of forward buying and diverting.

Accepted Answer

The answer of Explain the difference between the practices of...

Question 19

Which of the following is a bonus paid by a manufacturer to a salesperson for selling its product?

Accepted Answer

A bonus paid by a manufacturer to a salesperson for selling its product is called push money, also known as spiffs or SPIVs. Rebates are refunds given by the manufacturer to the customer. A merchandising allowance is a payment made by the manufacturer to the retailer for performing certain promotional activities. A premium is a free gift given by the manufacturer to the customer as an incentive to buy. A cross-promotion is when two or more products are promoted together.

Question 20

________ are goods offered either free or at low cost as an incentive to buy a product;they may be in-pack,on-pack,or delivered through the mail.

Accepted Answer

Premiums are goods offered either free or at low cost as an incentive to buy a product. They may be in-pack, on-pack, or delivered through the mail. Rebates are a refund of money on a purchase after the sale, bonus packs offer extra quantity of product at the same price, price-off packs give a reduced price on a product, and sweepstakes offer a chance to win a prize.

Quiz 13: Promotion I: Advertising and Sales Promotion