Exam 12: Sales Promotions

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Instant redemption coupons are a form of direct sampling.

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False

What are the four categories of consumers?

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promotion-prone consumers, brand-loyal consumers, price-sensitive consumers, and brand-preferred consumers

How can a company build a successful premium program?

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• Match the premium to the target market
• Reinforce the firm's image with the premium
• Tie the premium to the firm's products
• Make the premium in sufficient quality
• Integrate with the overall IMC approach

A consumer who purchases additional products because of a price-off tends to either consume more or delay a future purchase of the product.

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When two products from the same company are promoted together, using one consumer promotion, it is a(n):

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A price-off program:

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In terms of trade allowances, extra shipping costs occur when a retailer engages in:

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The most controversial form of trade allowance is the off-invoice allowance.

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Promotional campaigns the retailer plans for customers through manufacturer trade incentives are:

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Co-op advertising programs allow retailers to use the manufacturer's dollars to expand advertising programs.

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Offering Coke on sale one week, Pepsi the next week, and 7UP the following week can be planned out using a calendar promotion program.

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A bounce-back coupon is:

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A trade incentive involves the retailer performing a function in order to receive an allowance.

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A toy placed inside a box of cereal is an example of a(n):

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One reason retailers use slotting fees is that retailers must spend money to add new products to inventories and to stock new merchandise.

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A retailer agrees to display a particular brand of shoes in the front of the store and on a special end-of-aisle display in exchange for a price discount by the manufacturer. This is an example of a:

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What is the primary difference between a contest and a sweepstakes?

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An instant redemption coupon may lead to a trial purchase because the customer has immediate access to the discount.

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Putting a sample of a dryer sheet in a box of laundry detergent is a form of response sampling.

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Consumers must pay a small amount of money for a(n):

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