Scenario 11-4
General Mills brand breakfast cereals face strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. Still, General Mills brand like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows that they must stimulate consumer demand for their brands, but they must also stimulate retailer support for these brands as well. Their market research shows that some consumers are very loyal to certain brands of cereal, but most consumers are interested in some level of variety seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider their brand when shopping for breakfast cereal.
-(Scenario 11-4) On the back of Wheaties boxes, General Mills has attached a coupon for a cookbook offer. The book, entitled "Cooking with Wheaties" is available to consumers for a nominal charge of $3.00 plus a $2.00 shipping and handling charge. This is an example of a ____.

Question

Quizplus · Accepted Answer

This is an example of a self-liquidating premium because consumers are offered an item (the cookbook) at a reduced cost that covers the cost of the item itself and shipping, not providing it entirely for free or as part of a contest.

Scenario 11-4 General Mills Brand Breakfast Cereals Face Strong Competition in the in the Dry