Chapter 18 - Chapter 18Sales Promotion and Personal Selling...

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Chapter 18—Sales Promotion and Personal Selling TRUE/FALSE 1. Sales promotion offers an incentive to buy. ANS: T PTS: 1 REF: 279 OBJ: 18-1 TYPE: Comp TOP: 2. Marketers find it much easier to evaluate the effectiveness of advertising than the effectiveness of sales promotions. ANS: F An advantage of sales promotions is that a marketer can measure how many people used, for example, a coupon. PTS: 1 REF: 279 OBJ: 18-1 TYPE: Comp TOP: 3. Immediate purchase is usually the goal of sales promotion. ANS: T PTS: 1 REF: 280 OBJ: 18-1 TYPE: Def TOP: 4. Loyalty marketing programs are targeted to people who consistently buy the least expensive brand. ANS: F Loyalty marketing programs are targeted to loyal customers. Coupons, price-off packages, refunds, or trade deals are targeted to price buyers. See Exhibit 18.1. PTS: 1 REF: 280 OBJ: 18-1 TYPE: Comp TOP: 5. Coupon distribution by packaged-goods manufacturers has been increasing in recent years. ANS: T PTS: 1 REF: 281 OBJ: 18-2 TYPE: Comp TOP: 6. A rebate is a cash refund. ANS: T PTS: 1 REF: 281 OBJ: 18-2 TYPE: Def TOP: 7. When Apple offers to give any consumer who purchases a Macintosh computer a free iPod, this is an example of a premium offer. ANS: T PTS: 1 REF: 281 OBJ: 18-2 TYPE: App TOP: 8. Contests generally draw more entries than sweepstakes do. ANS: F
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Sweepstakes usually draw about ten times more entries than contests. PTS: 1 REF: 282 OBJ: 18-2 TYPE: Comp TOP: 9. Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase de- cisions are made before consumers ever enter a store. ANS: F Point-of-purchase promotions are an extremely important sales promotion tool because between 70 and 80 percent of all purchase decisions are made in the store. PTS: 1 REF: 283 OBJ: 18-2 TYPE: Comp TOP: 10. Point-of-purchase (P-O-P) promotions are another name for the Web pop-ups that try to lure potential customers to other sites. ANS: F Point-of-purchase promotions include any promotional display set up in a retail location to build traffic, advertise the product, or induce impulse buying. PTS: 1 REF: 283 OBJ: 18-2 TYPE: App TOP: 11. A trade allowance is a price reduction offered by retailers to customers who are buying homogeneous shopping goods.
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This note was uploaded on 01/18/2011 for the course FIN 3604 taught by Professor Patterson during the Spring '10 term at University of South Florida - Tampa.

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Chapter 18 - Chapter 18Sales Promotion and Personal Selling...

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