General Motors is offering the sales force at Meers Furniture Emporium a $100 reward for each Chevy Volt sold in the next 30 days. What type of trade sales promotion is the $100?

General Motors is offering the sales force at Meers Furniture Emporium a $100 reward for each Chevy Volt sold in the next 30 days. What type of trade sales promotion is the $100?

a. A trade allowance
b. Push money
c. A selling deal
d. Premium payment
e. A direct commission


ANSWER: b

General Mills is offering resellers a 10 percent discount on all cases of its granola bars purchased during the month of June. General Mills is offering a:

General Mills is offering resellers a 10 percent discount on all cases of its granola bars purchased during the month of June. General Mills is offering a:

a. trade allowance.
b. life cycle extension promotion.
c. P-O-P discount.
d. push money deal.
e. product development deal.



ANSWER: a

All of the following are examples of trade sales promotions EXCEPT:

All of the following are examples of trade sales promotions EXCEPT:

a. push money
b. store demonstrations
c. premiums and coupons
d. free merchandise
e. trade shows


ANSWER: c

Lopez is the largest Hispanic-owned meat processor in the United States. To assist retailers in marketing its products, Lopez provides point-of-sale materials and offers special introductory discounts to retailers. Lopez uses:

Lopez is the largest Hispanic-owned meat processor in the United States. To assist retailers in marketing its products, Lopez provides point-of-sale materials and offers special introductory discounts to retailers. Lopez uses:

a. functional marketing.
b. relationship selling.
c. consumer promotions.
d. startup marketing.
e. trade promotions.


ANSWER: e

Which of the following statements about online sales promotions is true?

Which of the following statements about online sales promotions is true?

a. Internet sales promotions are more effective and cost-efficient at generating responses than their off-line counterparts.
b. One of the few types of sales promotion that cannot be used online is sampling.
c. Online coupons have lower redemption rates than off-line coupons.
d. Loyalty marketing programs are ineffective when used at Web sites to encourage traffic.
e. There is no way for a marketer to build long-term, mutually beneficial relationships with customers online.


ANSWER: a

Point-of-purchase promotions work best for:

Point-of-purchase promotions work best for:

a. high-involvement products.
b. purchases that require extensive decision making.
c. complex products that require technical knowledge to operate.
d. impulse buys.
e. expensive products like perfume and jewelry.


ANSWER: d

___ are promotional exhibits set up at the retailer's location to build traffic, advertise the product, or induce impulse buying. They are targeted to consumers.

___ are promotional exhibits set up at the retailer's location to build traffic, advertise the product, or induce impulse buying. They are targeted to consumers.

a. Point-of-purchase displays
b. Freestanding inserts
c. Indirect demonstrations
d. Direct demonstrations
e. Freestanding kiosks


ANSWER: a

Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt Disney Company. Players pay a monthly fee to gain access to all of Club Penguin's feature, although free memberships with limited access to games is also available. Disney offers free membership to Club Penguin in the hope that kids who like the game will ask their parents to pay for the full version. Disney is using which sales promotion tool?

Club Penguin is an online role-playing game for kids aged 6 to 14 operated by the Walt Disney Company. Players pay a monthly fee to gain access to all of Club Penguin's feature, although free memberships with limited access to games is also available. Disney offers free membership to Club Penguin in the hope that kids who like the game will ask their parents to pay for the full version. Disney is using which sales promotion tool?

a. Sponsorship
b. Sampling
c. Trade promotions
d. In-pack couponing
e. Premiums


ANSWER: b

Which of the following statements about contests and sweepstakes is true?

Which of the following statements about contests and sweepstakes is true?

a. Contests depend on luck, and participation is free.
b. Contests are generally effective tools for creating long-term relationships with customers.
c. Sweepstakes are promotions that require participants to exhibit some skill.
d. Sweepstakes usually draw about ten times more participants than contests.
e. Contests and sweepstakes are not useful for creating interest and publicity.


ANSWER: d

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. This is an example of a:

The Pillsbury Bake-Off requires people to submit a recipe using Pillsbury baking products. Finalists are brought to Pillsbury kitchens to bake their recipes so the winner of a cash prize can be chosen. This is an example of a:

a. contest.
b. sales promotion game.
c. sweepstakes.
d. push money deal.
e. P-O-P (participant of Pillsbury).


ANSWER: a

Co-branded credit cards are used in conjunction with:

Co-branded credit cards are used in conjunction with:

a. self-perpetuating premiums.
b. loyalty marketing programs.
c. trade consumer promotions.
d. consumer discount programs.
e. functional consumer discounts.


ANSWER: b

Jack's Pet Store offers customers who purchase pet food a "Baker's Dozen" card. After customers purchase 12 bags of pet food from Jack's, they get the 13th bag free. The Baker's Dozen card is an example of a:

Jack's Pet Store offers customers who purchase pet food a "Baker's Dozen" card. After customers purchase 12 bags of pet food from Jack's, they get the 13th bag free. The Baker's Dozen card is an example of a:

a. directed coupon mailing.
b. sweepstakes.
c. loyalty marketing program.
d. trade sales promotion.
e. sampling program.


ANSWER: c

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?

Which type of consumer sales promotion rewards loyal consumers for making multiple purchases of a particular good or service?

a. A frequent buyer program
b. An 80/20 program
c. A net worth program
d. A premium program
e. A continuity program


ANSWER: a

New subscribers to Men's Health magazine receive a free copy of Men's Health Total Fitness Guide. The Fitness Guide is an example of a(n):

New subscribers to Men's Health magazine receive a free copy of Men's Health Total Fitness Guide. The Fitness Guide is an example of a(n):

a. contest.
b. premium.
c. trade sample.
d. product placement.
e. loyalty incentive.


ANSWER: b

A(n) ___ is an extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased.

A(n) ___ is an extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased.

a. coupon
b. trade sample
c. supplement
d. premium
e. add-on


ANSWER: d

When Rick purchased a Xerox color printer for his law office, he was able to mail in a proof-of-purchase and his cash register receipt to receive a check from Xerox for $200. Rick received a:

When Rick purchased a Xerox color printer for his law office, he was able to mail in a proof-of-purchase and his cash register receipt to receive a check from Xerox for $200. Rick received a:

a. premium.
b. trade allowance.
c. purchase allowance.
d. rebate.
e. functional discount.


ANSWER: d

Martina buys cola every week at the grocery store, but she always buys whatever is on sale. Coca-Cola, Pepsi, RC Cola—it doesn't matter to her. She is happy with whatever costs the least. Martina would be characterized as a:

Martina buys cola every week at the grocery store, but she always buys whatever is on sale. Coca-Cola, Pepsi, RC Cola—it doesn't matter to her. She is happy with whatever costs the least. Martina would be characterized as a:

a. loyal customer.
b. competitor's customer.
c. price buyer.
d. cherry picker.
e. freeloader.


ANSWER: c

About what percentage of consumers uses coupons or discount promotional codes when making purchases online?

About what percentage of consumers uses coupons or discount promotional codes when making purchases online?

a. 0.0772 percent
b. 0.772 percent
c. 7.72 percent
d. 77.2 percent
e. 100 percent


ANSWER: c

All of the following would be a target for a trade sales promotion offered by Rubbermaid, a manufacturer of storage and organization products, EXCEPT:

All of the following would be a target for a trade sales promotion offered by Rubbermaid, a manufacturer of storage and organization products, EXCEPT:

a. a retailer called The Container Store.
b. a kitchen department in a large discount store.
c. a wholesaler of plastic storage bins.
d. a Rubbermaid distributor.
e. a consumer who needs to organize her college dorm room.


ANSWER: e

What are the two types of sales promotion?

What are the two types of sales promotion?

a. Consumer and trade
b. Informative and reminder
c. Start-up and continual
d. Adoptive and diffusive
e. Personal and impersonal


ANSWER: a