Considering some kind of sales promotion narrend 100

considering some kind of sales promotion.
NARREND
100. Refer to Digital Cookware. Why might rebates be a really good sales promotion for Digital
Cookware to use?
a. They are useful in building long-term
relationships with customers.
b. They can create a great amount of publicity.
c. They create mutually beneficial relationships
between the manufacturer and its customers.
d. They are good at enticing purchases, but most
rebates are not redeemed.
e. They can be piggybacked with similar
products.
ANS: D
Building long-term relationships describes a loyalty marketing program. Sweepstakes and
contests generate publicity. Piggybacked is a term used with sampling.
PTS: 1 REF: 297 OBJ: 18-2 TOP: AACSB Reflective
Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Level III Application
101. Refer to Digital Cookware. If consumers receive a free spatula with the purchase of Digital
Cookware, this is an example of which type of consumer sales promotion?

c. A rebate
d. A bonus pack
e. An add-on
ANS: B
A premium is an extra item offered to the consumer.
PTS: 1 REF: 298 OBJ: 18-2 TOP: AACSB
Communication
KEY: CB&E Model Promotion MSC: BLOOMS Level III Application
102. Refer to Digital Cookware. The company’s first task is to define its exact sales promotion
objective. If the goal of the company is to persuade customers to buy its brand of skillet as
opposed to one of the skillets made by its competition, it should:
PTS: 1 REF: 299 OBJ: 18-1 TOP: AACSB Reflective
Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Level III Application
103. Refer to Digital Cookware. Digital Cookware is offering retailers a price reduction for allocating
space for special displays of its products. This type of trade sales promotion is called:
PTS: 1 REF: 300 OBJ: 18-3 TOP: AACSB Reflective
Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Level III Application
104. Refer to Digital Cookware. If Digital Cookware offered the sales associates at a chain of cooking
stores a bonus for each digital skillet they sold, it would be an example of:
a. push money.
b. a trade allowance.
c. a trade rebate.
d. pull money.

e. a functional discount.
ANS: A
Push money is money offered to channel intermediaries to encourage them to “push” products.
PTS: 1 REF: 300 OBJ: 18-3 TOP: AACSB Reflective
Thinking
KEY: CB&E Model Promotion MSC: BLOOMS Level III Application