University of Houston, Downtown

MBA 6208

1)Which of the following consumer promotion tools offers a free amount of a product or service delivered door-to- door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer?

1. coupons
2. rebates
3. premiums
4. samples
5. price packs

2.           are certificates that entitle the bearer to a stated saving on the purchase of a specific product.

1. Samples
2. Coupons
3. Rebates
4. Price packs
5. Premiums

3.           are consumer promotion tools that provide a price reduction after purchase rather than at the retail shop.

1. Rebates
2. Cents-off deals
3. Price packs
4. Coupons
5. Premiums

4. Premiums, as a consumer promotion tool, are defined as                .

1. offers to consumers of savings off the regular price of a product, flagged on the label or package
2. certificates entitling the bearer to a stated saving on the purchase of a specific product
3. programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services
4. merchandise offered at a relatively low cost or free as an incentive to purchase a particular product
5. values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

5.                      is a consumer promotion tool that involves inviting prospective purchasers to try the product without cost in the hope that they will buy.

1. Sampling
2. Premium
3. Cross-promotion
4. Free trial
5. Rebate

6. Which of the following consumer promotion tools involves using one brand to advertise another noncompeting brand?

1. tie-in promotion
2. frequency programs
3. specialty advertising
4. cross-promotion
5. patronage awards

7. Which of the following consumer promotion tools refers to explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer's money during a specified period?

1. product warranties
2. coupons
3. free trials
4. rebates
5. patronage awards

8. Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell?

1. diverting
2. panic buying
3. straight rebuy
4. buyout
5. forward buying

9. Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in non-deal regions?

1. diverting
2. panic buying
3. hoarding
4. stockpiling
5. forward buying

10. A                      is a sales force promotion tool that aims at inducing the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts, or points) going to those who succeed.

1. trade show
2. frequency program
3. sales contest
4. sweepstake
5. patronage award

11.                      time is the time necessary to prepare a promotional program prior to launching it.

1. Sell-in
2. Link
3. Setup
4. Lead
5. Hold

12.                      time begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers.

1. Lead
2. Hold
3. Setup
4. Link
5. Sell-in

13. Rolex calls itself the "Official Timekeeper" of the Wimbledon and Australian Open lawn tennis championships, by virtue of its sponsorships of the marquee events. What is the most likely objective for Rolex's sponsorship deal with these events?

1. to permit merchandising or promotional opportunities
2. to express commitment to the community or on social issues
3. to create experiences and evoke feelings
4. to identify with a particular target market or lifestyle
5. to increase salience of company or product name

14. Sales promotion consists of a collection of incentive tools designed to mainly stimulate long-term brand associations of products or services with consumers or the trade.

15. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums.

16. Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term.

17. Incessant price reductions, coupons, deals, and premiums can devalue a product in buyers' minds.

18. The historical approach correlates past sales to past advertising expenditures using advanced statistical techniques.

19. Loyal brand buyers tend to change their buying patterns as a result of competitive promotions.

20. Dominant brands offer sales promotion deals less frequently because most deals subsidize only current users.

21. Examples of manufacturer promotions include price cuts and feature advertising.

22. Sales promotion tools that typically are not brand building include price-off packs, contests and sweepstakes, consumer refund offers, and trade allowances.

23. Manufacturers handle forward buying and diverting by producing and delivering less than the full order in an effort to smooth production.

24. Additional costs beyond the cost of specific promotions include the risk that promotions might decrease long-run brand loyalty.

25. A price-off pack is an example of a consumer franchise building sales promotions.

129. Becoming part of a personally relevant moment in consumers' lives through                 can broaden and deepen a company or brand's relationship with the target market.

1. advertisements
2. events and experiences
3. sales promotions
4. public relations
5. direct marketing efforts

26. Mountain Dew is a brand known for sponsorships of adventure events such as snowboarding and skateboarding competitions. What is the most likely objective of Mountain Dew's sponsorship of these events?

1. to enhance corporate image
2. to express commitment to the community or on social issues
3. to entertain key clients or reward key employees
4. to create perceptions of key brand image associations
5. to become part of a personally relevant moment in consumers' lives

27. Audi models featured prominently in the 2010 blockbuster Iron Man 2, including main character Tony Stark's personal R8 Spyder. Which of the following is the most rational explanation for Audi's decision to associate itself with the movie?

1. to express commitment to the community or on social issues
2. to identify with a particular target market or lifestyle
3. to create experiences and evoke feelings
4. to become part of a personally relevant moment in consumers' lives
5. to entertain key clients or reward key employees

28. JBJ Sports is a leading sporting goods manufacturer from Atlanta. It has recently initiated a program in association with the Food4Kids Foundation, which raises funds to promote nutritional awareness of young children. The company plans to donate $1 for every item it sells in the North American market. Also, JBJ has roped in professional sports teams associated with it to wear the Food4Kids logo on their team gear. Which of the following best describes the motivation for JBJ's involvement in the program?

1. entertaining key clients or rewarding key employees
2. expressing commitment to the community or on social issues
3. permitting merchandising or promotional opportunities
4. stimulating quicker or greater purchase of particular brands
5. identifying with a particular target market or lifestyle

29. Which of the following factors forms the basis of assessing sponsorship activities through supply-side methods?

1. consumers' brand knowledge
2. impact on sponsor's bottom line
3. extent of media coverage
4. brand exposure reported by consumers
5. sales pattern of sponsored products

30. Which of the following parameters forms the basis for measuring sponsorship effectiveness using demand-side methods?

1. impact on market share of sponsor
2. amount of time a brand is clearly visible on a television screen
3. amount of relevant newsprint mentioning the sponsor
4. influence on consumers' brand knowledge of the sponsor
5. net impact on the sponsor's bottom line

31. An ideal event is unique but not encumbered with many sponsors, lends itself to ancillary marketing activities, and reflects or enhances the sponsor's brand or corporate image.

32. The supply-side method identifies the effect sponsorship has on consumers' brand knowledge.

33. Although supply-side exposure methods provide quantifiable measures, equating media coverage with advertising exposure ignores the content of the respective communications.

34. Media coverage and telecasts only expose the brand and do not necessarily embellish its meaning in any direct way.

35. The supply-side measurement method focuses on potential exposure to a brand by assessing the extent of media coverage, and the demand-side method focuses on exposure reported by consumers.

36.           is a marketing communications tool that includes a variety of programs to promote or protect a company's image or individual products.

1. Public relations
2. Advertising
3. Sales promotion
4. Personal selling
5. Direct marketing

37. Which of the following functions of public relations departments involves presenting news and information about the organization in the most positive light?

1. corporate communications
2. product publicity
3. lobbying
4. counseling
5. press relations

38. Which of the following describes the public relations function of lobbying?

1. sponsoring efforts to publicize specific products
2. advising management about public issues, and company positions and image during good times and bad
3. presenting news and information about the organization in the most positive light
4. dealing with legislators and government officials to promote or defeat legislation and regulation
5. promoting understanding of the organization through internal and external communications

39. What function does a company's public relations department perform when it promotes understanding of the organization through internal and external communications?

1. lobbying
2. corporate communications
3. press relations
4. product publicity
5. counseling

40. When a public relations department of a company advises management about public issues, and company positions and image during good times and bad, it is performing the function of               .

1. counseling
2. corporate communications
3. product publicity
4. lobbying
5. press relations