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Advertising implemented by retailers and paid for (at least in part) by a manufacturer is called:


A) joint sales promotions.
B) horizontal cooperative advertising.
C) vertical cooperative advertising.
D) joint trade promotions.
E) reseller advertising.

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Which of the following is an example of a sales promotion that can be used to contribute to franchise building?


A) A 50-cents off coupon on a box of Minute Rice to encourage repurchase.
B) A sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand.
C) A $50-rebate offer on the purchase of a Lane cedar chest.
D) A price reduction of $5 on a pair of Lee jeans.
E) A 'buy one get one free' offer on a pack of noodles.

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How has the view of sales promotions changed during the past decades?


A) Sales promotions are now considered an essential part of an organization's branding strategies.
B) Sales promotion tactics are now developed before the strategy is determined.
C) Sales promotions are now believed to be an ineffective tool for creating brand image.
D) Creatives have become more sophisticated,and this sophistication has led to a decline in their dependence on sales promotion.
E) There is no difference between how marketers used to treat sales promotions and how they treat them now.

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Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal.The appearance of Bart Simpson on the watch instead of the Kellogg's logo would:


A) detract from the consumer franchise building value of the promotion.
B) create problems in supply and demand.
C) make inventory forecasting easier.
D) fully support Kellogg's in its consumer franchise building promotion.
E) make it unnecessary for Kellogg's to run a nonfranchise building promotion.

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Which of the following statements is true about rebates?


A) Rebates are used only for consumer durables such as automobiles and appliances.
B) Most retailers want to be involved with rebate programs.
C) Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.
D) Rebates are increasing in popularity among both manufacturers and retailers.
E) Rebates are ineffective in encouraging repeat purchases.

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Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as:


A) consumer franchise-building promotion.
B) nonfranchise-building promotion.
C) sweepstakes.
D) image promotions.
E) trade promotions.

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Hasbro,a toy company,teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores.This is an example of:


A) incentive marketing.
B) a franchise building promotion.
C) brand equity building.
D) account-specific marketing.
E) brand extension.

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An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators.This payment is known as:


A) a slotting fee.
B) coop money.
C) a spiff.
D) pull money.
E) a trade allowance.

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A discount or deal offered to a retailer or wholesaler to encourage them to stock,promote or display a manufacturer's product is known as:


A) cooperative advertising.
B) merchandising support.
C) a trade allowance.
D) a spiff.
E) push money.

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_____ coupons are on/in pack coupons that are redeemable on the purchase of a different product,usually one made by the same company but occasionally through a tie-in with another manufacturer.


A) Bounce back
B) Cross-ruff
C) Instant
D) Cross sell
E) In-store

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Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.


A) cost-covered
B) self-liquidating
C) subsidized
D) cost-plus
E) base-cost

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Serta,the manufacturer of mattresses,gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer.The toy was only available for a limited time.The stuffed toy is an example of a:


A) coupon.
B) sample.
C) free premium.
D) rebate.
E) self-liquidating premium.

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The redemption rate for refunds is lower than that for coupons because:


A) the payoff is smaller.
B) the reinforcement is immediate.
C) more effort is required.
D) the payoff is larger.
E) the offers tend to expire very quickly.

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Nordica provides sales personnel in ski shops with training classes,detailed manuals,and other tools to help them better understand how to sell the company's ski boots.This is an example of:


A) cooperative advertising.
B) a planogram.
C) sales training programs.
D) event marketing.
E) spiffs.

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An effective premium is one that:


A) distracts consumers from the firm's main reason for existing.
B) ties into the overall positioning and communications campaign of the brand.
C) induces one-time trial purchase of a brand for which there is low awareness.
D) encourages repeat purchase of some brand other than that for which the premium is delivered.
E) has no impact on an organization's pioneering advertising.

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Brand equity is also known as:


A) customer loyalty.
B) customer franchise.
C) brand position.
D) brand logo.
E) trademark.

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Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami.Then United and other airlines immediately matched the offer,and it was believed for a long time that they all must continue the program or lose their competitive position.This situation is an example of:


A) a synergistic effect.
B) a sales promotional trap or spiral.
C) a multilevel sales promotion.
D) a trade-off allowance.
E) the attribution theory in operation.

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Which of the following is an example of consumer franchise building promotion?


A) Frequent flyer program of Lufthansa airways that gives the customer points on each travel that can be redeemed against various other purchases.
B) 'Buy one get one free' offer by Heinz ketchup.
C) 'Flat 30%' off on all merchandise at Nike exclusive stores only.
D) Limited offer of 'Get a toothbrush free along with a 50gm toothpaste' by Crest.
E) A premium by Kellogg's that provides the customer with 'Zip Zap toy' along with the purchase of a 200gm pack of 'Kellogg's Chocos'.

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