Question 1

As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer sales promotion.

Accepted Answer

Coupons are the most widely used form of consumer sales promotion, and they can be distributed through various channels like newspapers, magazines, and online channels. They offer customers an incentive to buy a product at a discounted price, and they can also help create brand loyalty. Coupons are also cost-effective for the company, as they only provide a discount to customers who actually purchase their product. Therefore, Quaker Oats should use coupons to introduce its new line of breakfast bars.

Question 2

Signs, counter pieces, racks, and self-service cartons are all forms of

Accepted Answer

Signs, counter pieces, racks, and self-service cartons are all examples of point-of-purchase displays, which are designed to attract customer attention and encourage impulse purchases at the point of sale. These displays can be highly effective in increasing sales and promoting new products or promotions within a retail environment.

Question 3

If Green Giant wants to provide its resellers with a secondary incentive to stimulate repurchases after an initial consumer coupon campaign for its latest product, it can offer resellers a sum of money for each unit purchased. This type of sales promotion is a

Accepted Answer

The answer of If Green Giant wants to provide its...

Question 4

Realizing that her firm's sales promotion budget was small and cut by 30 percent for the coming year, Stacey Baronas rules out ____ as playing a role in her sales promotion plan.

Accepted Answer

Samples typically require a larger budget as they involve giving away free products, which can be costly, especially with a reduced budget.

Question 5

Although Maybelline would like to use ____ as a consumer sales promotion method, this method has extremely high labor costs that are more affordable for higher-end make-up companies such as Clinique and Estée Lauder.

Accepted Answer

Demonstrations require trained staff to conduct them, which can be costly for companies. As Maybelline is a mass-market brand, it may not have the budget to allocate to hiring and training staff for extensive in-store demonstrations. On the other hand, higher-end brands such as Clinique and Estée Lauder have higher profit margins and can allocate more resources to in-store demonstrations.

Question 6

Heinz uses various techniques such as coupons, free samples, and consumer contests to encourage consumers to try its products. All of these marketing activities are considered

Accepted Answer

Coupons, free samples, and consumer contests are all consumer sales promotion methods used to encourage consumers to try a product and make a purchase. Trade sales promotion methods are targeted towards retailers and wholesalers rather than end consumers. Consumer sweepstakes and buying allowances are also types of sales promotions, but they are not specifically mentioned in the description of Heinz's marketing activities.

Question 7

As a promotional strategy, using coupons strives to achieve all of the following except

Accepted Answer

Coupons are typically used to increase sales, introduce new products or sizes, prompt trials, and attract repeat users, but they do not specifically show how a product is used.

Question 8

Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current customers but not new customers are believed to be disadvantages of which of the following?

Accepted Answer

Coupons can lead to fraudulent usage, may not attract new customers, and are often used by existing customers rather than attracting new, potentially brand-loyal customers.

Question 9

____ are offers of cash to customers who purchase a specific product, and ____ are offers of cash to customers who purchase a specific quantity of a specific product.

Accepted Answer

Rebates are offers of cash to customers who purchase a specific product. Money refunds are also offers of cash to customers, but specifically those who return products. Premiums are additional items offered with a purchase, cents-off represent a discount on a product, and buy-back allowances are offers made to retailers to encourage them to buy back inventory. Therefore, the best choice is E, as it correctly identifies rebates and money refunds as two different types of offers.

Question 10

____ are items offered free or at minimal cost as a bonus for purchasing a product.

Accepted Answer

Premiums are items offered free or at minimal cost as a bonus for purchasing a product. Rebates are a form of discount given after the purchase, samples are small amounts of a product given for free to try, merchandise allowances are discounts given to retailers for buying large quantities of a product, and coupons are vouchers or codes that offer discounts on a product.

Question 11

Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products and market those products more aggressively is a

Accepted Answer

The definition given matches the description of a trade sales promotion method which is targeted towards the wholesalers and retailers to encourage them to carry and push the products of the producer.

Question 12

Which of the following is an example of a trade sales promotion method?

Accepted Answer

The answer of Which of the following is an example...

Question 13

At one time, Wheaties offered two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a

Accepted Answer

This is an example of a premium, which is a promotional item that is given to customers as a reward for purchasing a product. In this case, the twin pack of Wheaties cereal featuring Tiger Woods comes with two free golf balls as a premium.

Question 14

The difference between consumer sales promotion methods and trade sales promotion methods is

Accepted Answer

Consumer sales promotions are aimed at encouraging consumers to purchase a particular product or brand, while trade sales promotions focus on encouraging wholesalers and retailers to carry the product in their stores or to increase their orders of the product. Trade sales promotions may include discounts, trade shows, or sales meetings, while consumer sales promotions may include coupons, rebates, or loyalty programs.

Question 15

Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?

Accepted Answer

The sales promotion described is a buying allowance, which is a temporary price reduction offered to retailers for purchasing a specified quantity of a product. This is intended to incentivize retailers to handle the product or purchase it in large quantities, and is a common type of sales promotion used in retail marketing. The other options (push money, buy-back allowance, cents-off offer, and money refund) are different types of sales promotions with their own distinct features and objectives.

Question 16

Which of the following is most likely to stimulate customer loyalty?

Accepted Answer

Frequent-user incentives are most likely to stimulate customer loyalty as they reward customers for repeat purchases and encourage them to continue patronizing the company. Coupons, sweepstakes, samples, and premiums may attract new customers, but they do not necessarily guarantee repeat business or loyalty.

Question 17

Tyler is a purchasing agent for Kellogg's. He is currently negotiating with his suppliers to receive a _______, which is a temporary price reduction to resellers for purchasing specified quantities of a product.

Accepted Answer

A buying allowance is a temporary price reduction given to resellers for purchasing specified quantities of a product. This fits the description of what Tyler is negotiating for as a purchasing agent. The other options are not applicable in this scenario - push money allowance is typically given to salespeople to motivate them to sell more, a merchandise allowance is a discount on a particular product and a buy-back allowance is an agreement to buy unsold goods back from a retailer. A discount is a general term that does not specify any terms or conditions for the reduction in price.

Question 18

Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a

Accepted Answer

This is a frequent-user incentive, as it rewards customers for making multiple purchases by offering them a free smoothie after they have filled the entire stamp card.

Question 19

On a break between classes, Kelley checks her smartphone and enters her contact information on the Publishers Clearing House site. She doubts that she will win $10 million, but she never passes up a chance to participate in a

Accepted Answer

Kelley is entering her contact information on the Publishers Clearing House site, which is known for its sweepstakes. Sweepstakes are a type of giveaway where winners are chosen at random, so there is no skill involved and it can be classified as a game of chance. Therefore, option E - sweepstakes - is the best choice.

Question 20

To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a

Accepted Answer

This is because the offer is giving a free additional product (pound of bananas) as a bonus for purchasing the large-size box of Chex cereals. This is a strategy used in premium promotions to incentivize customers to make a purchase by offering a desirable item for free or at a discounted price.

Quiz 18: Personal Selling and Sales Promotion