Question 1

Recently,McDonald's offered collectable toys based on the characters of the Nickelodeon cartoon TV show SpongeBob SquarePants for free with the purchase of a Happy Meal.These toys are an example of a __________.

Accepted Answer

The collectable toys are given for free with the purchase of a Happy Meal, which makes them a premium.

Question 2

When Milk-Bone dog biscuits offered a ball toy for $8.99 and two proofs of purchase,it was using a __________.

Accepted Answer

A premium is a promotional item that is offered as an incentive for purchasing a product or service. In this case, Milk-Bone is offering a ball toy as a premium for purchasing their dog biscuits and providing two proofs of purchase.

Question 3

Today,there are two popular variations of sweepstakes: (1)one that offers products that consumers value as the prize and (2)one that offers __________.

Accepted Answer

The question states that one popular variation of sweepstakes offers products as prizes, leaving only one option that is not a product-based prize. Choice C, offering an "experience" as the prize, fits this description and is the best choice. The other options all involve offering a product or promotion as the prize.

Question 4

Sales promotions that require participants to submit some kind of entry form but are purely games of chance requiring no analytical or creative effort by the consumer are referred to as

Accepted Answer

The description provided, "purely games of chance requiring no analytical or creative effort," fits the definition of sweepstakes. Sweepstakes require participants to submit an entry form, but winners are selected randomly rather than based on skill or effort. Premiums and deals typically involve offering a product or service at a reduced price or with an added bonus. Rebates involve a refund or credit for a portion of the purchase price. Contests require some level of skill, effort, or creativity in order to win.

Question 5

The "Crash the Super Bowl" sales promotion sponsored by PepsiCo,where people submit a 30-second TV ad for a $1 million prize,is an example of a __________.

Accepted Answer

The "Crash the Super Bowl" promotion is a contest where people submit their own advertisements for a chance to win a prize. Sweepstakes involve random chance to win, while deals and loyalty programs offer incentives for purchasing or participating in a program. Sponsor-generated content refers to branded content created by the company itself.

Question 6

McDonald's offered eight collectable toys related to the FIFA World Cup for free with the purchase of a Happy Meal.These FIFA collectibles are an example of a __________.

Accepted Answer

The FIFA collectibles offered by McDonald's are an example of a premium because they are a free gift given to customers who make a purchase (in this case, a Happy Meal). A deal would involve a discounted price or an offer to buy one item and get another for a reduced price. A rebate involves a customer receiving money back after making a purchase. A coupon provides a discount on a particular item or a purchase. A sample involves receiving a small portion of a product to try before making a purchase.

Question 7

What promotional tool is often used with consumers that consists of merchandise offered at a significant savings over its retail price and whose cost is covered if the consumer is charged for it?

Accepted Answer

This promotional tool is known as a self-liquidating premium. It is a type of promotion where merchandise is offered to consumers at a significant discount, and the cost of the merchandise is covered if the consumer pays for it. Essentially, the consumer is getting a great deal on the merchandise, while the company is still making a profit. BOGO deals, samples, rebates, and coupons all have their own unique characteristics and benefits, but they are not the same as a self-liquidating premium.

Question 8

A popular NPR radio show encourages listeners to solve a puzzle each week.If they have the correct answer and send it in to the show and theirs is chosen,they win a prize.This is an example of a __________.

Accepted Answer

This is a contest because it involves a skill or ability (solving the puzzle) and the winner is chosen based on merit or their correct answer, rather than at random like in a sweepstakes. Additionally, a prize is offered as an incentive for participation.

Question 9

Short-term price reductions commonly used to increase trial among potential customers or to retaliate against a competitor's actions is commonly referred to as a __________.

Accepted Answer

Short-term price reductions used to increase trial among potential customers or retaliate against a competitor's actions are referred to as deals. Coupons are discounts given to customers who present them when purchasing a product, samples are small portions of a product given to a potential customer for free to try, premiums are gifts given to customers who purchase a certain product, and product placement is the placement of a product in movies, TV shows, or other media to increase visibility.

Question 10

"Inspired by Threads-A Fashion Challenge" is a __________ run each year by Threads magazine,which is targeted toward professional clothiers and seamstresses.The idea is to design and sew a garment and send the entry into Threads to compete with others for prizes such as sewing machines and cash.

Accepted Answer

The passage describes a competition for designing and sewing a garment and submitting it for judging in order to win prizes. This is clearly a contest, as opposed to a premium (a free or discounted item given as a reward), a sweepstakes (a random drawing for a prize), a deal (a special offer or discount), or an end-run sample (an unclear term).

Question 11

A print ad for Allegra allergy medication offers a free purple seat cushion to all who request additional information about the drug.This seat cushion is an example of a __________.

Accepted Answer

A premium is an item offered for free or at a low cost as a bonus for purchasing a product or requesting information about a product. In this case, the purple seat cushion is being offered as a premium for requesting additional information about Allegra allergy medication.

Question 12

Which sales promotion tool is the best match for the growth in consumer (or user)-generated content?

Accepted Answer

Contests are the best match for the growth in user-generated content because they encourage consumers to create original content and share it on their social media platforms. This not only increases brand awareness but also generates valuable user-generated content that can be used for future marketing efforts.

Question 13

A sales promotion in which the consumer is invited to apply their skill or analytical or creative thinking to try to win a price is commonly referred to as a __________.

Accepted Answer

A contest is a sales promotion where consumers apply skill or creativity to win a prize, unlike sweepstakes which are based on chance.

Question 14

The sign at the entrance to the men's store reads,"Buy one shirt,get a second shirt of equal or lower value for only one dollar." Which type of sales promotion is the men's store is using?

Accepted Answer

The men's store is using a deal sales promotion, specifically a "buy one, get one for $1" deal.

Question 15

The radio commercial said,"Send three proofs of purchase and $3 for postage and handling to receive your monogrammed T-shirt." This ad was offering customers a __________.

Accepted Answer

The offer of a monogrammed T-shirt for sending in proofs of purchase and paying for postage and handling is a premium. A premium is a promotional item that is given as an incentive for making a purchase or taking a particular action, such as sending in proofs of purchase.

Question 16

During Super Bowl weekend,Pepsi introduces a new brand of soft drink.On that same weekend,Coca-Cola offers a "BOGO" (Buy One,Get One)promotion to make the Pepsi new product introduction more difficult.Which type of sales promotion is Coca-Cola using?

Accepted Answer

Coca-Cola is offering a BOGO promotion to encourage customers to buy their product instead of trying the new Pepsi product. This is an example of a deal promotion, where a product is offered at a lower price or with added value to entice customers to make a purchase.

Question 17

During the Pillsbury Bake Off,thousands of people across the country compete to create the best new recipe using the sponsor's products.Not only does the company benefit from publicity surrounding the event and the great recipes that can be used later to increase product usage,but also there is an increase in product sales as contenders buy items to practice their new recipes.The top 100 finalists are flown to Orlando,FL to compete for cash and merchandise exceeding $1 million! This is an example of a very successful __________ promotion.

Accepted Answer

This is a clear example of a contest promotion, where individuals compete to create the best recipe using the sponsor's products, with the top finalists receiving significant prizes. A challenge promotion typically involves individuals challenging themselves to complete a specific task or goal, while a sweepstakes involves chance-based selection of winners. A competition is a broader term that can refer to any situation where individuals or groups are vying for a prize or recognition. A public relations campaign is a more general term that refers to any effort to improve a company's reputation or image.

Question 18

A promotional tool often used with consumers which consists of merchandise offered free or at a significant savings over its retail price is referred to as a

Accepted Answer

A premium is a promotional tool that involves offering merchandise for free or at a lower price than its retail value. This is often done to incentivize customers to make a purchase, and to thank them for their loyalty to a brand or product. Examples of premiums include free t-shirts, hats, or other merchandise when a customer buys a certain amount of a product or service.

Question 19

The California Pistachio Growers Association has an ongoing ad campaign in which it encourages people to think of pistachios when they think of good times and good friends.The ads ask readers to log onto www.pistachios.org to register to win 100 pounds of pistachios for a year plus a trip to California.The association is using a __________ to measure the effectiveness of its ads.

Accepted Answer

The association is using a sweepstakes to encourage people to register on their website and measure the effectiveness of their ads. A sweepstakes is a promotional tool used to incentivize people to participate in a contest in exchange for a prize. In this case, the prize is 100 pounds of pistachios for a year and a trip to California. By tracking the number of registrations on their website, the association can measure the effectiveness of their ad campaign.

Question 20

Bernina,a sewing machine manufacturer,has an ongoing ad campaign in which it encourages sewers to stop in to their local Bernina dealer to register to win a new sewing machine.No purchase is necessary.Bernina is using a __________ to measure the effectiveness of its ads.

Accepted Answer

Bernina is using a sweepstakes to track the effectiveness of their ads by incentivizing potential customers to visit their local dealer without requiring them to make a purchase.

Quiz 15: Advertising, Sales Promotion, and Public Relations