Question 1

The primary objective for offering a rebate or refund on a product is to

Accepted Answer

A)   encourage brand switching
B)   increase the level of brand loyalty
C)   reward individuals for purchasing the product
D)   reach price-sensitive consumers who are receptive to products that offer any type of financial incentiveE) All of the above
F) B) and D)

Question 2

Premiums offer a major benefit not possible with coupons, which is

Accepted Answer

A)   premiums cost less than coupons
B)   a higher redemption rate
C)   customers pay full price for the product
D)   a higher level of retail acceptanceE) B) and D)
F) A) and C)

Question 3

Expenditures used by manufacturers and other members of the channel to help push their products through the channel are called

Accepted Answer

A)   trade promotions
B)   sales, or consumer, promotions
C)   channel promotions
D)   push promotionsE) None of the above
F) B) and C)

Question 4

In theory, trade promotions should enhance a manufacturer's relationship with other channel members, but, in reality, channel members tend to push the manufacturer's brand that offers the best trade promotions.

Accepted Answer

A) True 
 B)False

Question 5

From a manufacturer's perspective, trade promotions goals include all of the following except

Accepted Answer

A)   build brand equity
B)   build retail inventories
C)   enhance channel relationships
D)   stimulate initial distributionE) None of the above
F) All of the above

Question 6

Money or prizes awarded in a trade contest is called ____________________.

Accepted Answer

The answer of Money or prizes awarded in a trade...

Question 7

From the following objectives, premiums would be the best for

Accepted Answer

A)   rewarding current customers
B)   encouraging consumers to try a new brand
C)   encouraging consumers to switch to a new brand
D)   consumers who are brand-consciousE) A) and D)
F) A) and C)

Question 8

A free liter of Pepsi with the purchase of a DiGiorno pizza is an example of a(n)

Accepted Answer

A)   overlay
B)   bonus pack
C)   intracompany tie-in
D)   intercompany tie-inE) B) and C)
F) None of the above

Question 9

From a firm's perspective, price-offs are an excellent consumer promotion tool for boosting sales because

Accepted Answer

A)   consumers who use competing brands will switch
B)   the impact is almost instantaneous
C)   price-sensitive consumers will make an immediate purchase
D)   the change in sales lasts beyond the price-off promotionE) B) and C)
F) A) and C)

Question 10

Match the descriptions with their terms:
-Sales promotions that are a cash reimbursement to a customer for the purchase of a product.

Accepted Answer

A)   Coupons
B)   Premiums
C)   Contests and sweepstakes
D)   Bonus packs
E)   Tie-insF)  Frequency programsG)  SamplingH)  Price-offsI)  Refunds and rebatesJ)  Product placementK) B) and G)
L) C) and I)

Question 11

The primary method used to distribute coupons is through free standing inserts.

Accepted Answer

A) True 
 B)False

Question 12

In a contest, participants do not need to make a purchase to enter, the winners are determined by a random drawing or random ticket, and each entrant has an equal chance of winning.

Accepted Answer

A) True 
 B)False

Question 13

The primary objectives of trade promotions are to build relationships with members of the marketing channel and to provide an incentive for consumers to purchase the product.

Accepted Answer

A) True 
 B)False

Question 14

Match the descriptions with their terms:
-Sales promotion that offers customers free merchandise for making a purchase.

Accepted Answer

A)   Coupons
B)   Premiums
C)   Contests and sweepstakes
D)   Bonus packs
E)   Tie-insF)  Frequency programsG)  SamplingH)  Price-offsI)  Refunds and rebatesJ)  Product placementK) B) and D)
L) B) and F)

Question 15

A fitness center offering a one-week free trial membership is an example of sampling.

Accepted Answer

A) True 
 B)False

Question 16

In terms of consumer promotions, refunds tend to be used for hard goods while rebates tend to be used for soft goods.

Accepted Answer

A) True 
 B)False

Question 17

Price-offs tend to have the greatest impact on brand-loyal and current customers.

Accepted Answer

A) True 
 B)False

Question 18

Intercompany tie-ins involve two or more similar products within the same company.

Accepted Answer

A) True 
 B)False

Question 19

The goal of frequency programs is to enhance brand equity and develop brand loyalty.

Accepted Answer

A) True 
 B)False

Question 20

To gain the most from the use of trade promotions, firms need to plan the trade promotions into their IMC program and not use trade promotions as a reactive measure to boost sales or counter competitive actions.

Accepted Answer

A) True 
 B)False

Exam 15: Consumer and Trade Promotions

A free liter of Pepsi with the purchase of a DiGiorno pizza is an example of a(n)

Correct AnswerverifiedShow Answer

Money or prizes awarded in a trade contest is called ____________________.

Correct AnswerverifiedShow Answer

From a firm's perspective, price-offs are an excellent consumer promotion tool for boosting sales because

Correct AnswerverifiedShow Answer

To gain the most from the use of trade promotions, firms need to plan the trade promotions into their IMC program and not use trade promotions as a reactive measure to boost sales or counter competitive actions.

Correct AnswerverifiedShow Answer

The goal of frequency programs is to enhance brand equity and develop brand loyalty.

Correct AnswerverifiedShow Answer

A fitness center offering a one-week free trial membership is an example of sampling.

Correct AnswerverifiedShow Answer

Match the descriptions with their terms: -Sales promotions that are a cash reimbursement to a customer for the purchase of a product.

Correct AnswerverifiedShow Answer

Intercompany tie-ins involve two or more similar products within the same company.

Correct AnswerverifiedShow Answer

From the following objectives, premiums would be the best for

Correct AnswerverifiedShow Answer

In terms of consumer promotions, refunds tend to be used for hard goods while rebates tend to be used for soft goods.

Correct AnswerverifiedShow Answer

Premiums offer a major benefit not possible with coupons, which is

Correct AnswerverifiedShow Answer

The primary objectives of trade promotions are to build relationships with members of the marketing channel and to provide an incentive for consumers to purchase the product.

Correct AnswerverifiedShow Answer

The primary method used to distribute coupons is through free standing inserts.

Correct AnswerverifiedShow Answer

The primary objective for offering a rebate or refund on a product is to

Correct AnswerverifiedShow Answer

Price-offs tend to have the greatest impact on brand-loyal and current customers.

Correct AnswerverifiedShow Answer

Expenditures used by manufacturers and other members of the channel to help push their products through the channel are called

Correct AnswerverifiedShow Answer

From a manufacturer's perspective, trade promotions goals include all of the following except

Correct AnswerverifiedShow Answer

Match the descriptions with their terms: -Sales promotion that offers customers free merchandise for making a purchase.

Correct AnswerverifiedShow Answer

In theory, trade promotions should enhance a manufacturer's relationship with other channel members, but, in reality, channel members tend to push the manufacturer's brand that offers the best trade promotions.

Correct AnswerverifiedShow Answer

In a contest, participants do not need to make a purchase to enter, the winners are determined by a random drawing or random ticket, and each entrant has an equal chance of winning.

Correct AnswerverifiedShow Answer

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