Question 1

________ refer(s)to printed or electronic certificates that offer discounts on particular items and are redeemed at the time of purchase.
A) Coupons
B) Rebates
C) Premiums
D) Trade allowances
E) Trade promotions

Accepted Answer

A) The biggest category of consumer promotion is coupons, printed or electronic certificates that spur sales by giving buyers a discount when they purchase specified products.

Question 2

Luminescent Inc.manufactures and sells products related to surfing,skateboarding,and snowboarding.During Christmas,the firm gave free sports bottles with a Luminescent logo to all its customers,with the aim of keeping the firm's name in front of customers for a long period of time.This is an example of ________ advertising.
A) institutional
B) comparative
C) cooperative
D) consultative
E) specialty

Accepted Answer

E) Specialty advertising refers to advertising that appears on various items such as coffee mugs, pens, and calendars, designed to help keep a company's name in front of customers.

Question 3

Fashion Tree,an online retailer of fashion apparel,asks its website visitors if they want to opt-in to its mailing list,via a pop-up screen.This enables the firm to avoid annoying its customers.Every month Fashion Tree sends an e-mail highlighting current fashion trends to individuals who opt-in to its mailing list.In this example,Fashion Tree uses ________.
A) remarketing
B) stealth marketing
C) search engine marketing
D) targeted display advertising
E) permission-based marketing

Accepted Answer

E) To minimize the level of annoyance and to help potential customers get the information they really do want, many companies now emphasize permission-based email marketing, usually by asking customers or website visitors to opt-in to mailing lists.

Question 4

In ________,a salesperson acts as a consultant and advisor who helps current and potential customers find the best solutions to their personal or business needs.
A) direct marketing
B) prospecting
C) consultative selling
D) specialty advertising
E) sales promotion

Accepted Answer

C) Consultative selling refers to an approach in which a salesperson acts as a consultant and advisor to help customers find the best solutions to their personal or business needs.

Question 5

The process of finding and qualifying potential customers is known as ________.
A) consultative selling
B) behavioral targeting
C) consumer promotion
D) prospecting
E) trade promotion

Accepted Answer

D) The process of finding and qualifying potential customers is known as prospecting.

Question 6

Discounts or other financial considerations offered by producers to wholesalers and retailers are termed as ________.
A) trade allowances
B) point-of-purchase displays
C) product placement
D) conversation marketing
E) premiums

Accepted Answer

A) Trade allowances refer to discounts or other financial considerations offered by producers to wholesalers and retailers.

Question 7

Free or bargain-priced items offered to encourage consumers to buy a product are termed as ________.
A) premiums
B) point-of-purchase displays
C) coupons
D) rebates
E) trade allowances

Accepted Answer

A) Premiums are free or bargain-priced items offered to encourage the consumer to buy a product.

Question 8

Bell Laboratories,a pharmaceutical company,launches a new,over-the-counter drug for pain relief.The firm supplies the new drug to pharmacies and physicians at a discounted rate to encourage the retailers to carry the new product.In this example,Bell Laboratories uses which of the following promotional strategies?
A) point-of-purchase displays
B) product placement
C) conversation marketing
D) trade allowances
E) premiums

Accepted Answer

D) Trade allowances refer to discounts or other financial considerations offered by producers to wholesalers and retailers.

Question 9

________ involves ads with graphical content served up on web pages based on some knowledge of an individual's interests or behaviors.
A) Targeted display advertising
B) Infomercials
C) Institutional advertising
D) Guerrilla advertising
E) Product placement

Accepted Answer

A) Targeted display advertising involves ads with graphical (as opposed to just textual) content served up on web pages based on some knowledge of an individual's interests or behaviors.

Question 10

The manufacturers of Zap Deodorant,a newly launched brand of men's deodorants,decide to provide coupons for 50-cents off on all their products in the Sunday newspaper.This is an example of what element in the communication mix?
A) conversation advertising
B) social media
C) public relations
D) personal selling
E) sales promotion

Accepted Answer

E) Sales promotion refers to a wide range of events and activities designed to promote a brand or stimulate interest in a product.

Question 11

Jones' Treats,a food manufacturing company located in Massachusetts,produces a range of candy products.The firm negotiates with its retailers to set up jars with Jones' Treats candies at the billing counters.Jones' Treat also puts up wall posters and window clings advertising its candies in the retail stores that stock its products.In this example,Jones' Treats uses which of the following promotional strategies?
A) rebates
B) trade allowances
C) point-of-purchase displays
D) specialty advertising
E) coupons

Accepted Answer

C) Point-of-purchase (POP) display refers to advertising or other display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions.

Question 12

The chief downside of trade allowances is that they can lead to ________,in which the retailer buys a large quantity of a product when the price is low,thus reducing the producer's profit in the long run.
A) push marketing
B) forward buying
C) slotting allowances
D) viral marketing
E) pull strategies

Accepted Answer

B) The chief downside of trade allowances is that they can create the controversial practice of forward buying, in which customers load up on merchandise while the price is low.

Question 13

Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.
A) rebates
B) trade allowances
C) point-of-purchase displays
D) specialty advertising
E) coupons

Accepted Answer

C) Point-of-purchase (POP) display refers to advertising or other display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions.

Question 14

Advertising differs from direct marketing in that advertising ________.
A) often uses personally addressable media
B) doesn't involve the purchase of time or space in other media
C) often excludes a direct response aspect
D) works to build lasting relationships with customers
E) involves personal sales contacts

Accepted Answer

C) Direct marketing has a direct response aspect that often isn't present in advertising.

Question 15

If a company asks its customers or website visitors to opt-in to its mailing lists,it is using ________.
A) stealth marketing
B) search engine marketing
C) targeted display advertising
D) permission-based marketing
E) remarketing

Accepted Answer

D) To minimize the level of annoyance and to help potential customers get the information they really do want, many companies now emphasize permission-based email marketing, usually by asking customers or website visitors to opt-in to mailing lists.

Question 16

In ________,the salesperson recites or even reads a stock message,with no regard for the customer's unique circumstances.
A) canned sales pitch
B) prospecting
C) direct marketing
D) behavioral targeting
E) consultative selling

Accepted Answer

A) In the canned sales pitch, the salesperson recites or even reads a stock message, with no regard for the customer's unique circumstances.

Question 17

Which of the following statements is true about direct marketing?
A) Direct marketing refers to one-on-one interaction between a salesperson and a prospective buyer.
B) In direct marketing, the salesperson acts as an advisor who helps customers find the best solutions to their needs.
C) It is difficult to measure the results of direct marketing efforts.
D) Direct marketing is a static approach, with little scope for experimentation and improvement.
E) The heart of any direct marketing effort is a customer database.

Accepted Answer

E) The heart of any direct marketing effort is a customer database that contains contact histories, purchase records, and profiles of each buyer or potential buyer.

Question 18

________ involve(s)short-term incentives to build the reputation of a brand and stimulate interest in a product.
A) Direct selling
B) Sales promotion
C) Institutional advertising
D) Public relations
E) Brand communities

Accepted Answer

B) Sales promotion consists of short-term incentives to build the reputation of a brand, encourage the purchase of a product, or simply enhance relationships with current and potential customers.

Question 19

One-on-one interaction between a salesperson and a prospective buyer is called ________.
A) personal selling
B) direct marketing
C) prospecting
D) sales promotion
E) specialty advertising

Accepted Answer

A) Personal selling refers to one-on-one interaction between a salesperson and a prospective buyer.

Question 20

Joseph is a new sales agent at Clevenger & Co.,a firm that sells life and health insurance plans.Joseph is asked to generate a list of individuals in a specific neighborhood who might need insurance services,and then shortlist those individuals who are likely to have the available money to purchase the firm's insurance plans.In this example,the task given to Joseph is termed as ________.
A) consumer promotion
B) consultative selling
C) prospecting
D) behavioral targeting
E) trade promotion

Accepted Answer

C) The process of finding and qualifying potential customers is known as prospecting.

Quiz 16: Customer Communication

________ refer(s) to printed or electronic certificates that offer discounts on particular items and are redeemed at the time of purchase.

In ________,a salesperson acts as a consultant and advisor who helps current and potential customers find the best solutions to their personal or business needs.

The process of finding and qualifying potential customers is known as ________.

Discounts or other financial considerations offered by producers to wholesalers and retailers are termed as ________.

Free or bargain-priced items offered to encourage consumers to buy a product are termed as ________.

________ involves ads with graphical content served up on web pages based on some knowledge of an individual's interests or behaviors.

The manufacturers of Zap Deodorant,a newly launched brand of men's deodorants,decide to provide coupons for 50-cents off on all their products in the Sunday newspaper.This is an example of what element in the communication mix?

The chief downside of trade allowances is that they can lead to ________,in which the retailer buys a large quantity of a product when the price is low,thus reducing the producer's profit in the long run.

Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.

Advertising differs from direct marketing in that advertising ________.

If a company asks its customers or website visitors to opt-in to its mailing lists,it is using ________.

In ________,the salesperson recites or even reads a stock message,with no regard for the customer's unique circumstances.

Which of the following statements is true about direct marketing?

________ involve(s) short-term incentives to build the reputation of a brand and stimulate interest in a product.

One-on-one interaction between a salesperson and a prospective buyer is called ________.