Question 1

Explain the use of coupons in promotion with an example.

Accepted Answer

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Question 2

A sales promotion advertisement created by a company named Tadez Corp.to increase its already established product's short-term sales is an example of an informative advertisement.

Accepted Answer

A sales promotion advertisement created by a company to increase short-term sales is an example of a persuasive advertisement, not an informative one, as its main goal is to convince consumers to take action (i.e. purchase the product) through various incentives and messaging strategies.

Question 3

Closing the sale refers to the termination of a sale owing to the dissatisfaction of a customer.

Accepted Answer

Closing the sale refers to the successful completion of a sale, typically resulting in the satisfaction of a customer and the exchange of goods or services for payment.

Question 4

An online retailer sells a product to a customer through deception.This is an example of puffery.

Accepted Answer

Puffery is a marketing technique that involves using exaggerated or vague statements to promote a product or service, but it should not involve deception. If the online retailer is selling a product to a customer through deception, it is not an example of puffery but rather unethical or illegal behavior.

Question 5

The Competition Act of 1986 enforces federal laws that ensure businesses in Canada operate in a fair and equitable manner.

Accepted Answer

The Competition Act of 1986 is a federal law in Canada that promotes fair competition among businesses and prohibits anti-competitive practices. Its purpose is to ensure that there is healthy competition in the market and that businesses operate in a fair and equitable manner.

Question 6

Distinguish between informative advertising and persuasive advertising.Provide one example for each.

Accepted Answer

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Question 7

What is reminder advertising? In what stage of product life cycle it should be used? Provide one example.

Accepted Answer

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Question 8

A display located at the checkout counter of a textile showroom is an example of a point-of-purchase display.

Accepted Answer

A point-of-purchase (POP) display is a marketing strategy used by retailers to attract customers and enhance their shopping experience. It is placed near the cash register or checkout counter to encourage impulse buying. Therefore, a display located at the checkout counter of a textile showroom is an example of a point-of-purchase display.

Question 9

Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

Accepted Answer

Personal selling involves direct communication between the buyer and seller, where the seller aims to persuade and influence the buyer's decision to purchase a product or service. The communication is not just one-way but is a two-way flow that involves active listening and responding to the buyer's needs and concerns. Therefore, the statement is true.

Question 10

Susan is a sales representative of a pharmaceutical company.She often visits hospitals without taking formal appointments from the doctors.Such visits are known as cold calls.

Accepted Answer

Cold calls refer to unscheduled visits or calls made by a salesperson to a potential customer or client without any prior appointment or coordination. As Susan visits hospitals without any formal appointment from the doctors, it can be concluded that she is making cold calls.

Question 11

Why is the Competition Act considered important legislation?

Accepted Answer

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Question 12

A firm named Pizzerio Inc.offers free pizzas based on a chance drawing of consumers who buy and fill up lucky-draw forms from its retail stores.This is an example of a sweepstake.

Accepted Answer

A sweepstake is a type of promotion where prizes are awarded to winners selected at random. In this case, Pizzerio Inc. offers free pizzas based on a chance drawing of consumers who fill up lucky-draw forms, which is a classic example of a sweepstake.

Question 13

A company named DFS Inc.starts a marketing campaign to get people to try its innovative stain remover, but only 50 percent of the product trials result in actual sales.This is an example of the lagged effect.

Accepted Answer

The lagged effect in marketing refers to the delay between marketing activities and their outcomes, not the conversion rate of trials to sales.

Question 14

Bring out the difference between aided recall and top-of-mind awareness.Provide examples to support your answer.

Accepted Answer

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Question 15

Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel.

Accepted Answer

Discounts and allowances are incentives that can encourage retailers to maintain or increase their inventory levels, as they provide a financial benefit to the retailer when purchasing goods from the manufacturer or supplier. This can help ensure that the manufacturer's products are readily available to customers and can help increase sales.

Question 16

Explain the lagged effect.

Accepted Answer

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Question 17

Encouraging repurchase is the major objective of loyalty programs.

Accepted Answer

Loyalty programs are designed to reward and incentivize repeat business, which ultimately encourages repurchase.

Question 18

Institutional advertisements are used to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.

Accepted Answer

Institutional advertisements aim to educate consumers about broader issues, such as social or political causes, or to build brand awareness for a corporation or industry.

Question 19

Briefly explain the difference between advertising regulations in Canada and the European Union in terms of handling puffery.

Accepted Answer

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Question 20

Objections are unlikely to occur during the sales presentation stage of personal selling.

Accepted Answer

Objections are a common occurrence during the sales presentation stage of personal selling. Prospects may have questions, concerns or doubts about the product or service being offered, and it is the salesperson's job to address these objections and provide solutions or reassurance.

Quiz 15: Advertising, Sales Promotions, and Personal Selling