Marketing Chapter 15 Key Part 4

46. Sweepstakes can be most accurately defined as a form of sales promotion that offers:  A. incentives to customers who make multiple purchases over time. B. potential customers the opportunity to try a product or service. C. a special type of short-term price reduction to customers. D.prizes based on a chance drawing of entrants' names. E. certain items for free or at a bargain price to reward some type of behaviour. A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes do not require the entrant to complete a task other than buy a ticket or fill out a form. Often the key benefit of sweepstakes is that they encourage current consumers to consume more if the sweepstakes form appears inside the packaging or with the product.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #46 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-19 Sweepstakes 47. Which of the following is a key difference between sweepstakes and contests?  A. Sweepstakes require customers to use their skills. B. Contests involve distributing samples of a product. C. Sweepstakes do not involve customers. D. Contests can be advertised through mass media. E. Sweepstakes winners are determined by a random draw. A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes do not require the entrant to complete a task other than buy a ticket or fill out a form. Unlike contests, sweepstakes winners are determined by a random draw.  Accessibility: Keyboard Navigation Blooms: Understand DifÏculty: Medium Grewal - Chapter 15 #47 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-19 Sweepstakes 48. Which of the following offers potential customers the opportunity to try a product or service before they make a buying decision?  A. A contest B. A coupon C. A sample D. A deal E. A sweepstake Sampling offers potential customers the opportunity to try a product or service before they make a buying decision. Distributing samples is one of the most costly sales promotion tools but also one of the most effective.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #48 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-20 Samples 49. Beautify Inc. is a firm that offers cosmetics and beauty products. The company introduces a new type of wet facial tissue paper. To familiarize target consumers with the product, Beautify Inc. offers the product for free with the company's other offerings. Such an offering is an example of a:  A. coupo n. B. sampl e. C. contes t. D. discoun t. E. sweepstak e. The offering of the new product by Beautify Inc. is an example of a sample. Sampling offers potential customers the opportunity to try a product or service before they make a buying decision.  Accessibility: Keyboard Navigation Blooms: Apply DifÏculty: Hard Grewal - Chapter 15 #49 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-20 Samples 50. Which of the following are specifically designed to retain customers by offering premiums or other incentives to customers that make multiple purchases over time?  A. Product placements B. Rebate s C. Contest s D. Sweepstak es E. Loyalty programs As part of a sales promotion program, a loyalty program is specifically designed to retain customers by offering premiums or other incentives to customers that make multiple purchases over time. Such sales promotions are increasingly popular and are often tied to long-term customer relationship management systems.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #50 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-21 Loyalty Programs 51. Shopper Corporation gives membership cards to customers that can be used to earn value points every time they shop at a Shopper outlet. This membership card allows its customers to make multiple purchases over time. The membership card is an example of a:  A. loyalty program. B. sweepstak e. C. marku p. D. contes t. E. rebate offer. The membership card given by Shopper Corporation is an example of a loyalty program. As part of a sales promotion program, a loyalty program is specifically designed to retain customers by offering premiums or other incentives to customers that make multiple purchases over time.  Accessibility: Keyboard Navigation Blooms: Apply DifÏculty: Hard Grewal - Chapter 15 #51 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-21 Loyalty Programs 52. Treats Corp., a company that markets packaged and processed foods, introduces a new flavour of microwave popcorn. To promote customer trials of the product, Treats Corp. exhibits the product near the checkout counters in many retail outlets. This strategy is an example of a:  A. sales contest. B. loyalty program. C. special deal. D.point-of-purchase display. E. marketing contest. The strategy used by the company to promote its product is an example of a pointof-purchase (POP) display. A POP display is a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store.  Accessibility: Keyboard Navigation Blooms: Apply DifÏculty: Medium Grewal - Chapter 15 #52 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-22 Point-of-Purchase Displays 53. Which of the following is a merchandise presentation typically placed at a store's checkout counter?  A. A POP display B. A sales contest C. A special deal D. A marketing contest E. A loyalty program A point-of-purchase (POP) display is a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store. Marketers spend almost as much on POP materials as they do on consumer magazine advertising, but the key to a successful POP is to make the display "pop out" in a crowded store.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #53 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-22 Point-of-Purchase Displays 54. A particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer is referred to as a:  A. sweepstak e. B. rebat e. C. premiu m. D. contes t. E. loyalty program. Rebates refer to a particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer. Firms offer such generous rebates because the likelihood that consumers will actually apply for the rebate is low, even though consumers indicate that rebate offers are a factor in their purchase decisions.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #54 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-23 Rebates 55. Which of the following is a disadvantage of using samples as a consumer sales promotion tool?  A. They require high creativity. B. They incur high cost to a firm. C. They discourage trial. D. They reduce direct involvement of consumers. E. They result in a reduction of sales. One of the disadvantages of using samples as a consumer sales promotion tool is that they incur high cost to the firm. Sampling offers potential customers the opportunity to try a product or service before they make a buying decision.  Accessibility: Keyboard Navigation Blooms: Understand DifÏculty: Medium Grewal - Chapter 15 #55 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-20 Samples 56. Which of the following is a feature of POP (point-of-purchase) displays?  A. They reduce brand trial. B. They encourage higher consumption. C. They provide in-store support. D. They are effective as they are usually easy to get a good location in the stores. E. They minimize brand switching among existing consumers. One of the disadvantages of POP (point-of-purchase) displays is it is difÏcult to get a good location in the store. A point-of-purchase (POP) display is a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store. Marketers spend almost as much on POP materials as they do on consumer magazine advertising, but the key to a successful POP is to make the display "pop out" in a crowded store.  Accessibility: Keyboard Navigation Blooms: Understand DifÏculty: Medium Grewal - Chapter 15 #56 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-22 Point-of-Purchase Displays 57. Which of the following statements is true of coupons?  A. They usually reduce the demand for products. B. They are rarely used in supermarkets. C. They provide discounts on items even before they are purchased. D.They allow for direct tracing of sales. E. They have high redemption rates. Coupons allow for direct tracing of sales. A coupon offers a discount on the price of specific items when they are purchased. Coupons are issued by manufacturers and retailers in newspapers, magazines, and free-standing inserts, on products, on shelves, at the cash register, over the Internet, and by mail.  Accessibility: Keyboard Navigation Blooms: Understand DifÏculty: Medium Grewal - Chapter 15 #57 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-15 Coupons 58. Tuff Textiles Inc. is a leading apparel manufacturer. To increase the demand for its products, the company advertises that it would reward its customers with a 5 percent discount in exchange for purchase receipts from its company. This scheme by Tuff Textiles Inc. is an example of a:  A. sweepstak e. B. rebat e. C. sampl e. D. contes t. E. premiu m. This scheme by Tuff Textiles Inc. is an example of a rebate. Rebates refer to a particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer.  Accessibility: Keyboard Navigation Blooms: Apply DifÏculty: Hard Grewal - Chapter 15 #58 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-23 Rebates 59. Discounts and allowances are effective incentives used primarily to:  A. maintain or increase inventory levels in the distribution channel. B. remind customers of an existing brand or company. C. promote consumer products to consumers. D. provide special-purpose training to employees. E. reduce the supply of certain items in the distribution network. Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel. Manufacturers sometimes offer a case allowance, for example, a discount or dollar amount taken off each case ordered during a specific time period.  Accessibility: Keyboard Navigation Blooms: Understand DifÏculty: Medium Grewal - Chapter 15 #59 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-25 Discounts and Allowances 60. Which of the following is an example of a trade channel sales promotion?  A. Customer loyalty program B. Co-operative advertising C. Product placement D. Promotional contest E. Point-of-purchase display Trade channel promotions help convince retailers and wholesalers to stock a new brand, give it eye-level shelf space, and promote it in their flyers and other advertisements. Many types of consumer sales promotions can be used for channel members, including discounts and allowances, co-operative advertising, and sales force training.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #60 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-24 Trade Channel Sales Promotions 61. Two local newspapers join to introduce a national arts magazine called "Across Veniopolis." Experts from both the firms contribute to the magazine, and the firms bear the costs equally. The sales promotion tool used is an example of:  A. product placing. B. a sales contest. C. crosspromoting. D. a loyalty program. E. co-operative advertising. This is an example of the sales promotion tool of cross-promoting. Many firms are realizing the value of cross-promoting, when two or more firms join together to reach a specific target market. To achieve a successful cross-promotion, the two products must appeal to the same target market and together create value for consumers.  Accessibility: Keyboard Navigation Blooms: Apply DifÏculty: Hard Grewal - Chapter 15 #61 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-28 Using Sales Promotion Tools 62. Which of the following terms can be best defined as the efforts of two or more firms joining together to reach a specific target market?  A. Product placement B. Loyalty program C. Crosspromoting D. Crossselling E. Co-operative advertising Many firms are realizing the value of cross-promoting, when two or more firms join together to reach a specific target market. To achieve a successful crosspromotion, the two products must appeal to the same target market and together create value for consumers.  Accessibility: Keyboard Navigation Blooms: Remember DifÏculty: Easy Grewal - Chapter 15 #62 Learning Objective: 15-03 Explain how sales promotions supplement a firms IMC strategy. Topic: 15-28 Using Sales Promotion Tools