Chapter 8

2. In most cases, a company will use either a "push" promotion strategy or a "pull" promotion strategy, rarely both.
a. True
b. False

4. The most common consumer promotion objective is trial purchase.

a. True
b. False

6. A coupon is a predetermined amount of money returned directly to customers by the manufacturer after the purchase has been
made.
a. True
b. False

8. Media-delivered coupons are popular if the objective if the primary objective is brand awareness.
a. True
b. False

10. Product sampling is an effective, but expensive way to promote a product.

a. True
b. False

12. Slippage is another word for product lost due to customer theft.
a. True
b. False

14. When a brand offers 20% more of a product at the same price as a regular size item, this is known as a bonus pack.
a. True
b. False

16. Louise accidentally through out her birthday gift card with the rest of the party clean up. Since the card was never used, this is
an example of breakage.
a. True
b. False

18. Marketing organizations often pay a percentage (often 50 percent or more) of the distributor's advertising cost, provided that
the marketer's brand is featured prominently, this is called a performance allowance.
a. True
b. False

20. For most brands, sales promotion is the focal point of their marketing communications efforts.
a. True
b. False

22. Consumer promotions refers to those activities that are designed to stimulate consumer purchase, trying to get product into the
distribution method by using a
a. sales strategy.
b. integrated marketing strategy.
c. pull strategy.
d. push strategy.
e. place strategy.
24. One of the common types of trade promotions activities is
a. free merchandise.
b. contests.
c. samples.
d. allowances.
e. free radio advertising.

26. There are two basic types of promotion strategy: push and pull. In pull strategy, demand is created by
a. directing efforts at salespeople.
b. directing efforts at intermediaries.
c. blitz media campaigns.
d. lobbying government officials.
e. directing efforts at consumers.

28. A sales promotion brief would NOT typically include

a. integrated marketing communication objectives.
b. target market profile.
c. market profile.
d. sales promotion objectives.
e. competitor activity profile.

30. According to Resolve Corporation research shows the redemption rate for a coupon depends on the
a. dollar amount of the coupon.
b. type of product.
c. method of delivery.
d. perceived value of the offer in relation to the regular price.
e. appeal of the artwork on the coupon.

32. The most common objective of consumer promotion is to

a. obtain distribution.
b. stimulate multiple purchases.
c. encourage trial purchase.
d. increase brand awareness.
e. change a brand's position in the minds of consumers.

34. An agreement made by a wholesaler to distribute a manufacturer product to the retailer it supplies is called a
a. listing.
b. shelving.
c. trade promotion plan.
d. contract.
e. distribution.

36. Three common trade promotion objectives are to secure a listing with distributors, build sales volume, and
a. encourage repeat purchase.
b. encourage trial.
c. build brand awareness.
d. change consumer attitudes.
e. secure merchandising support.
38. Due to its high impact and reach, __________ is a medium that is often used in conjunction with sales promotion in order to
create awareness and excitement.
a. radio
b. print
c. the Internet
d. television
e. direct mail

40. Which of the following measures could be used to evaluate the success of a sales promotion?
a. response rate
b. coupon redemption rate
c. incidence of trial purchase
d. number of contest entries
e. All of the above could be used to measure the success of a sales promotion plan.

42. According to the Canadian Deals Association, which keeps records on coupon distribution., the average redemption rate of
coupons in Canada is
a. 5.72%.
b. 3.25%.
c. 2.50%.
d. 1.26%.
e. 10.3%.

44. Which of the following methods of coupon distribution would be best if the objective is repeat purchase?
a. media-delivered coupons
b. the Internet
c. freestanding inserts
d. magazines
e. in-pack or on-pack self-coupons

46. This type of product-delivered coupon is valid on the purchase of a different product.
a. instantly redeemable coupon
b. on-pack self-coupon
c. in-pack self-coupon
d. cross-ruff
e. free-standing insert

48. According to the Promotion Marketing Association research shows that 68% of respondents
a. saw sampling as a waste of time.
b. viewed sampling as a way to minimze risk.
c. would take more than one sample.
d. were "excited" about receiving a sample.
e. found the product when purchased was different then the sample.

50. Many manufacturers do not select product sampling as a sales promotion strategy
a. because product sampling has no proven effect on trial purchase.
b. because sampling is difficult logistically.
c. because the redemption rate for product samples is low.
d. due to the high costs involved.
e. due to the difficulty in producing samples.
52. Marketers need to be familiar with section 189 of the Criminal Code and Sections 52 and 59 of the Competition Act if they
plan on
a. working with distributors.
b. issuing a rebate.
c. running a contest.
d. developing new products.
e. advertising.

54. Sally collected labels for weeks on a promotional offer for her favourite yogurt, but she failed to send them to the company
and request the refund. This is known as
a. shrinkage.
b. a failed promotion.
c. slippage.
d. leakage.
e. delayed redemption.

56. An additional item given free, or greatly discounted, to induce purchase of the primary brand is also called a
a. rebate.
b. sweepstakes.
c. slippage.
d. premium.
e. free sample.

58. In terms of premiums, bonus packs rank lower in terms of popularity, but they do offer some benefits. Which of the following
is NOT an objective met by bonus packs?
a. They provide a merchandising tool to encourage displays in stores.
b. They help retain current customers.
c. They help build brand loyalty.
d. They increase the quantity of a brand purchased.
e. They increase product awareness.

60. The best known and longest running loyalty program in Canada is run by
a. Pepsi-Cola.
b. Esso.
c. Air Miles.
d. Air Canada.
e. Canadian Tire.

62. A result study revealed that 86% of Canadians

a. participate in more than one loyalty program.
b. prefer coupons to loyalty programs.
c. do not participate in any loyalty programs.
d. participate in two to five loyalty programs.
e. participate in at least one loyalty program.

64. Which of the following is not a common trade promotion option?

a. dealer premium
b. on-pack premiums
c. trade allowances
d. performance allowances
e. cooperative advertising allowance
66. Kraft Canada often offers retailers a discount to encourage them to set-up some special displays for one or more of their
products. This is called a(n)
a. dealer premium.
b. point-of-purchase allowance.
c. advertising allowance.
d. performance allowance.
e. trade allowance.

68. A manufacturer of golf balls offers free premium golf bags to distributors to encourage them to purchase more products and to
secure additional merchandising support. The use of the bags is an example of
a. performance allowances.
b. dealer premiums.
c. cooperative advertising.
d. dealer allowances.
e. collateral.

70. One of the risks of using sales promotions is that used too often they can
a. raise the brand's profit margin.
b. hurt the brand's image.
c. generate large profits.
d. lower profit margins.
e. Both B and D are correct.