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161 Cards in this Set
- Front
- Back
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In the opening vignette, Macy's learned the hard way that:
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consumers love a deal
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In the opening vignette, Macy's learned that extensive use of discounts and promotional offers:
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undermines their ability to build and maintain brand equity
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_____ is defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or to ultimate consumer with the primary objective of creating an immediate sale.
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A sales promotion
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Which of the following elements of the integrated marketing communications programs is designed to provide an extra incentive to consumers to purchase a brand?
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sales promotion
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Which of the following statements does NOT describe an aspect or characteristic of sales promotion?
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Most of the sales promotional dollars are spent on consumer-oriented promotions.
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Marketers can target sales promotion efforts to:
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A. consumers
B. retailers C. distributors D. salespeople E. all of the above |
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When a marketer distributes coupons for a brand with a specific expiration date, they are attempting to use sales promotion as a(n):
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acceleration tool
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Coupons, bonus packs, premiums and samples are promotional offers that are targeted toward:
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consumers
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Consumer-oriented sales promotions are part of a promotional ______ strategy.
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pull
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All of the following are examples of trade-oriented sales promotion activities EXCEPT:
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coupons
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All of the following are examples of consumer-oriented sales promotion activities EXCEPT:
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trade shows
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Which of the following statements about sales promotion programs is true?
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Many sales promotion programs are designed to motivate distributors and retailers to carry a product and push it to their customers.
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Among major packaged goods companies, the greatest percentage of the promotional budget is allocated to:
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trade promotions
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Among major packaged goods companies, spending on _____ has remained relatively constant over the past decade.
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consumer promotion
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How has the view of sales promotions changed during the past decades?
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Sales promotions are now considered an essential part of an organization's branding strategies.
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Why are organizations like KFC, Heinz Foods, Toys R Us, and Anheuser Busch placing more emphasis on sales promotions than ever before?
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because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements
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Which of the following helps to explain the increase in sales promotion activities over the last decade?
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the advertising clutter problem
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Which of the following developments have resulted in a transfer of power from manufacturers to retailers?
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Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
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Consumers have become more sensitive and responsive to sales promotion because:
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A. consumers are multi-brand loyal
B. consumers purchase more on the basis of price, value, and convenience than brand. C. many purchase decisions are being made in the store where many sales promotions are found D. marketers are offering consumers more promotions to attract and maintain customers E. of all of the above reasons |
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Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage:
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the use of price-oriented promotions to generate short-term sales
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Which of the following statements about the proliferation of new products in the consumer marketplace is true?
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A. Consumer product companies launch approximately 20,000 new products each year.
B. Sales promotion programs play an important role in motivating retailers to allocate shelf space to new products. C. Supermarkets now carry an average of 30,000 different products compared to 13,067 in 1982. D. Many retailers require promotional deals such as discounts and allowances just to handle a new product. E. All of the above statements about the proliferation of new products in the consumer marketplace are true. |
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Which of the following statements about the proliferation of new products in the consumer marketplace is true?
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Consumer product companies launch approximately 20,000 new products each year.
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How are marketers responding to the fragmentation of the consumer market?
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They are using more sales promotions that are tied into local events.
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Wal-Mart is known for its marketing ______________, influencing all aspects of marketing including sales promotions by brand manufacturers.
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power
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What do many businesspeople give as a reason for the increasingly short-term focus on performance and sales volume in business today?
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the brand management system
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Marketers who are being held accountable for strategy implementation often need concrete methods to show the effectiveness of their decision-making. For this reason, many marketers rely on:
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sales promotions such as coupons and price discounts
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____ is a recent development whereby companies are customizing their sales promotion programs for key retailers.
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Account-specific marketing
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Another name for account-specific marketing is:
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comarketing
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The toy company Hasbro teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys good only at Toys R Us stores. This is an example of:
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account-specific marketing
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Heinz Foods created a Cinco de Maio celebration for a large supermarket that targets Mexican-Americans, a market that Heinz sees as an area of potential growth. Heinz paid for a mariachi band to serenade shoppers during the day and also set up a food-sampling booth at the store's entry. This would be an example of:
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account-specific marketing
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Some promotional studies indicate the number of sales promotions being offered to consumers is limiting its effectiveness as a marketing tool. In other words, _____ is affecting sales promotion just as it has advertising.
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clutter
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Critics of sales promotions contend the increase in sales promotions is leading to a decrease in:
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brand equity
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Which of the following statements correctly describes the relationship between brand equity and sales promotion?
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A. Critics argue sales promotion spending contributes to the destruction of brand equity.
B. Critics argue every dollar that is spent on promotion rather advertising devalues the brand. C. Critics argue sales promotion is leading to reductions in brand equity because it comes at the expense of media advertising. D. Not all sales promotion activities detract from brand equity. E. All of the above statements about the concerns over the relationship between brand equity and advertising and promotion are true. |
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Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity are:
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franchise building promotions
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Which of the following statements describes how brand equity is affected by the increased role of sales promotion?
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Proponents of brand equity argue increased spending on sales promotion is coming at the expense of media advertising, and this is leading to declines in brand equity.
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In a sales promotion sponsored jointly by Puerto Rico Tourism Board and Rums of Puerto Rico, couples were invited to enter a contest for a chance to win the perfect wedding. According to the ad, enjoying Puerto Rico hospitality is "As Easy As Saying I Do." The contest is an example of:
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a franchise building promotion
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Tropicana developed a "Win the Perfect Vacation" sweepstakes to complement an advertising campaign theme promoting its grapefruit juice as the perfect beverage. This is an example of:
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a franchise building promotion
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Consumer-franchise-building for a brand:
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can be accomplished through consumer promotions that reinforce established brand images or positioning
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The building or reinforcement of consumer-franchise or equity for a brand:
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can be done with carefully planned sales promotion programs
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Which of the following is an example of a sales promotion that can be used to contribute to franchise building?
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a sweepstakes or contest that uses a theme which is consistent with the image or positioning of the brand
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Which of the following is an example of a nonfranchise building promotion?
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price-off deals
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Van Kamp Sea Foods devotes most of its marketing budget to trade discounts in the form of off-invoice and promotional allowances so its canned tuna and salmon brands can remain price competitive with private label brands. The heavy emphasis on trade promotion makes it difficult to:
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build a Van Kamp brand identity and image
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Promotional activities designed to accelerate the purchase process and generate an immediate increase in sales without communicating information about a brand's unique features or benefits are known as:
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nonfranchise-building promotion
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Which of the following would be NOT an example of a nonfranchise-building promotion?
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image advertising
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The sales promotion tool that critics contend is most guilty of detracting from brand equity and at the same time being detrimental to a brand franchise is:
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trade promotions
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Which of the following is a reasonable objective for consumer-oriented sales promotions?
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A. to obtain trial of a new brand
B. to encourage repurchase of a brand C. to increase consumption of an established brand D. to enhance advertising and marketing efforts E. all of the above |
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When Campbell Soup Company introduced its V8 Splash fruit medley juices, the company gave out free samples at Sam's Clubs and distributed millions of 50-cents-off coupons. The objective(s) of these sales promotion tools was to:
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obtain trial and repurchase
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Which of the following statements about sales promotions is true?
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The oldest, most widely used, and most effective sales promotion tool is the cents-off coupon.
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The American Airline AAdvantage promotional program rewarded consumer:
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loyalty
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Post Cereal is introducing a new kind of breakfast cereal that is soy-based and targeted at health-conscious adults between the ages of 25 and 50. The marketing objectives for the introduction are to generate trial and repeat purchase during the 3-month product launch. Which of the following sales promotion tools should work best for Post?
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high value in package coupons and sampling
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Sales promotion tools could be used to increase sales of an established brand by:
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A. giving away samples to attract nonusers of the brand
B. using coupons to give users of a competitive brand an incentive to switch
C. identifying new uses for the product
D. using a premium offer that appeals to people who use a competitive brand E. doing all of the above |
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The objective of a $.75-off coupon for Selsun Blue dandruff shampoo was most likely to:
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attract users of a competitive brand
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Which of the following describes a sales promotion that can be used by a marketer to defend its current customer base?
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A. Use special price promotions to encourage consumers to stock up on the brand.
B. Use bonus pack promotions to get consumers to buy larger sizes. C. Use coupons to encourage consumers to continue to buy the brand. D. Use trade promotions to encourage retailers to display and promote the brand. E. Do any or all of the above. |
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Smucker's ran a sweepstakes promoting Smucker's ice cream toppings. The sweepstakes was designed to let NASCAR fans know Smucker's sponsored a NASCAR racing team. The purchase of any specially-marked toppings gave customers a chance to win a new Ford Taurus or thousands of other prizes instantly from Smucker's. In this example, a sales promotion was used to:
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target a specific market segment
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____ is generally considered the most effective method for generating trial of a new product.
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Sampling
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Samples would be an appropriate promotional strategy to:
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A. increase the market share of an established brand
B. induce trial of a new brand that is clearly superior to the competition
C. assist consumers to learn a new behavior D. introduce a new product to the marketplace E. do all of the above |
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Samples would be an appropriate promotional strategy to:
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introduce a new flavor of sport drink to the marketplace
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Sampling programs are most effective when the product:
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A. is of low unit value and samples do not cost too much
B. is divisible and can be broken into small sampling units
C. has a short purchase cycle so that consumers will be motivated to make an immediate purchase D. has features and benefits that are easily experienced and appreciated E. has any or all of the above characteristics |
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Sampling for a product such as expensive skin cream that is designed to reduce wrinkles over a long period of time might not be feasible because:
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it may be too expensive to give away sample sizes that would be adequate to demonstrate the cream's benefits since it has to be used repeatedly
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Define "epiglottis."
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Leaf-shaped structure that prevents food and foreign matter form entering the trachea.
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_____ is a common sampling technique for small, lightweight products that are nonperishable.
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Sampling through the mail
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Which of the following statements about on-package sampling is true?
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A. This can be a very cost effective sampling method, particularly for multiproduct companies.
B. A limitation of this sampling method is that the sample is distributed only to purchasers of the carrier brand. C. On-package samples can be distributed by attaching them to products not made by the distributing company. D. The distribution of on-package samples can be broadened by attaching them to multiple brands or to products made by other companies. E. All of the above statements about on-package sampling are true. |
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Which of the following statements explains why marketers have recently increased their use of sampling?
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Marketers believe sampling meets the complementary goals of introducing consumers to their products and getting retailers to support their programs.
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The oldest, most widely used, and most effective sales promotion tool is:
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cents-off coupons
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____ distributed the first coupon in 1895.
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C. W. Post Co.
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An advantage of coupons is that they:
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allow a marketer to offer a price reduction to consumers who are price sensitive without having to reduce the price for everyone
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A recent study of coupon redemption patterns found:
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many coupons are redeemed just before the expiration date rather than in the period following the initial drop
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Which of the following statements describes a limitation associated with using coupons as sales promotional tools?
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Coupons are often used by consumers who are already loyal to the brand.
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Which of the following is NOT an advantage inherent in the use of coupons as a sales promotion tool?
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Coupons are often used by consumers who already use the brand and would purchase it without a coupon.
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When calculating the costs of a couponing program, marketers should consider:
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A. production costs
B. redemption costs
C. handling costs
D. distribution costs
E. all of the above |
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The most popular method for distributing coupons is:
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newspaper freestanding inserts (FSIs)
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What advantage does distribution of coupons through direct mail have over other forms of coupon delivery?
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more precise reach
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Valpak uses advertising to:
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promote the value of the coupons inside
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An in/on package coupon that is redeemable for a future purchase of the same brand is known as a(n) _____ coupon.
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bounce-back
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On the inside of the Tortino's brand pizza box was a $1-off coupon for the purchase of the next Tortino's pizza. Tortino's used a(n) _____ coupon.
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bounce-back
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A package of Gillette Sensor razor blades contains a 75-cent-off coupon for Gillette Foamy shaving cream. This is an example of a(n) _____ coupon.
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cross-ruff
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Kellogg's places a 50-cent-off coupon for Rice Krispies brand cereal on the outside of a box of its Frosted Mini-Wheats brand of cereal. This is an example of a(n) _____ coupon.
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cross-ruff
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Affixed to the front of a bag of Aunt Jemima corn meal was a(n) _____ coupon that could be torn off (without damaging the bag) and redeemed at the time of the purchase.
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instant
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____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product. ____ couponing is a method for distributing coupons by identifying a customer's purchases through bar codes scanners and then printing the coupon for a competing or complementary product.
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In-Store
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Gillette's market research shows that most consumers decide upon a brand of deodorant at the point-of-purchase rather than before entering the store. Based on these findings, what form of promotion should be most effective for Gillette's Right Guard brand?
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in-store coupons
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Which of the following couponing methods allows companies to reach users of competitive brands rather than consumers who already use their brand?
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checkout coupons
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Electronically dispensed checkout coupons:
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A. reach consumers when they are ready to make a purchase
B. increase brand awareness on the shelf
C. provide category exclusivity D. generate impulse buying and product trial E. are accurately described by all of the above |
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Electronically dispensed checkout coupons:
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generate impulse buying and product trial
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Companies in the ____ industry have begun replacing brand-specific coupons with universal coupons that can be redeemed for any of their brands.
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cereal
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A(n) _____ is an offer of an item of merchandise or service either free or at a reduced price that is used to provide an extra incentive to purchase.
A. coupon
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premium
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Serta, the manufacturer of mattresses, gave away a Serta Sheep Plushie toy to any customer who purchased a mattress from a Serta dealer. The toy was only available for a limited time. The stuffed toy is an example of a(n):
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free premium
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Quaker Oats cereal included tubes of Colgate Junior toothpaste inside each box of Life brand cereal. This is an example of a:
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free premium
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Consumers must pay the manufacturers' out-of-pocket costs for a _____ premium.
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self-liquidating
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Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. This is an example of a _____ premium.
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self-liquidating
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Which of the following statements about the use of premiums as a sales promotion tool is true?
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The use of premiums is very popular among fast food restaurants as a way of attracting children.
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Which of the following statements about the use of premium offers by fast-food chains such as McDonald's and Burger King is true?
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Many of the premiums used by these companies have cross-promotional tie-ins with popular movies.
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Kellogg's promoted a Bart Simpson watch to consumers who mailed in $2.95 and 3 UPCs from boxes of Kellogg's cereal. The appearance of Bart Simpson on the watch and not the Kellogg's logo would:
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detract from the consumer franchise building value of the promotion
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An effective premium is one that:
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ties into the overall positioning and communications campaign of the brand
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Which of the following would be the best example of a premium offer that contributes to consumer-franchise building efforts for a brand?
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a free sport bottle with the purchase of a four-pack of Gatorade
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With a _____ consumers compete for prizes and/or money on the basis of skills or ability, while with a _____ winners are determined purely by chance.
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contest; sweepstakes
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Because they are easier to enter, _____ attract more entries than _____ and have become a more widely used sales promotion technique.
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sweepstakes; contests
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Which of the following sales promotion techniques would be most effective for generating excitement or interest in a brand?
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contests/sweepstakes
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Arm & Hammer maker of Crystal Blend scoopable cat litter, Super Scoop, the baking soda clumping litter, Super Clay, the premium lightweight clay litter, and Cat Litter Deodorizer ran a contest to find the "Coolest Cat Trick." First prize was $10,000 first prize, and several smaller prizes were awarded to other participants. The most likely reason why Arm & Hammer used this contest was to:
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generate excitement and interest about the Arm & Hammer brand cat litters
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Sweepstakes and contests:
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can be used to generate excitement and involvement with a popular and timely event
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Which of the following is NOT a problem associated with the use of contests and sweepstakes?
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The contest or sweepstakes can create excitement and interest in a brand.
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Which of the following sales promotion techniques is impacted negatively by the presence of professionals or hobbyists who take advantage of the promotion without making a purchase?
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contests and sweepstakes
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Inefficiently run sales promotions can result in:
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negative publicity
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The Kraft clause is:
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a disclaimer used with contests and sweepstakes to protect the sponsoring company
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Which of the following statements about rebates is true?
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Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.
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The redemption rate for refunds is lower than that for coupons because:
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more effort is required
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As a sales promotion, _____ has the advantage of offering a price incentive to the consumer, which may or may not be utilized, depending upon how the consumer acts after the purchase.
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a rebate
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Acushnet ran a promotion offering a box of fifteen Pinnacle golf balls for the same regular price as twelve balls. This is an example of a:
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bonus pack
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Bonus packs:
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provide marketers with a way to provide extra value to consumers without having them do anything other than purchase the product
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When reductions from the regular price of a product are offered at the point-of- purchase through specially marked packages, a marketer is using a:
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price-off deal
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The use of rebates by marketers has increased dramatically partly because:
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they know 40 percent of rebates never get redeemed
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Which of the following statements describe an advantage associated with price-off deals?
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A. Price-off deals ensure the price discount reaches the consumer.
B. The value of price-off deals offer is usually very apparent to the shopper. C. Price-off deals can encourage consumers to buy larger quantities. D. Price-off deals can provide a strong point-of-purchase influence. E. All of the above are advantages associated with price-off deals. |
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Super-Sav supermarket gives customers VIC (very important customer) cards, which allows customers to take advantage of additional discounts on certain products and notification of special, customer-only sales. In addition, customers can accrue points each time they present their cards. These points can be used to purchase cookware, dishes, and other similar hard goods. Super-Sav is using a:
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frequency program
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Every time Beth buys a book at Waldenbooks, she presents her Waldenbooks card, and the sales associate enters her purchase in a database. When she has purchased five books at regular price, she is sent a coupon for a free book to be picked out on her next visit to the store. This is an example of a:
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frequency program
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Frequency programs:
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A. are also called continuity programs
B. have become popular with supermarkets C. are also called loyalty programs D. give marketers the opportunity to develop databases E. are accurately described by all of the above |
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Why have frequency programs become so popular with marketers?
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Frequency programs support the goal of customer retention.
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Coors Light beer's heavy financial involvement with and support of freestyle skiing competitions, beach volleyball tournaments, and other sporting events are examples of:
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event marketing
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May is National Arthritis Month. To celebrate this month, the manufacturer of Aleve pain reliever sponsored fundraiser walks to raise money to find a cure for arthritis. Aleve's manufacturer engaged in:
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event marketing
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Which of the following statements about event sponsorships is true?
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Decisions and objectives for event sponsorships are often part of an organization's public relations activities.
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All of the following are reasonable objectives for trade-oriented sales promotions EXCEPT:
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to differentiate a brand through image enhancement
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Which of the following is a viable objective for a trade-oriented sales promotion?
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A. to obtain distribution and support for new products
B. to maintain retailer support for established brands C. to encourage retailers to display and promote established brands D. to build retail inventories E. to do all of the above |
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Arm & Hammer baking soda distributes freestanding inserts (FSIs) in the paper on the last Sunday of October that encourage consumers to change the box of baking soda in their refrigerator when they turn their clocks back to standard time. This is an example of how sales promotion can be used to:
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increase consumption of an established brand by identifying a specific use
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Programs involving cash payments directly to the sales force to reward them for selling the manufacturer's products involve the use of:
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push money
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Which of the following promotions is targeted toward the trade rather than consumers?
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spiffs
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An appliance manufacturer offers a $50 payment to salespeople who work at Rutgers Appliance if they sell one of the company's new refrigerators. This payment is known as:
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spiff
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Another term used for push money that is given to retailers' or wholesalers' sales staff to encourage them to promote and sell a company's product is:
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a spiff
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A discount or deal offered to a retailer or wholesaler to encourage them to stock, promote or display a manufacturer's product is known as:
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trade allowance
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Ocean Spray offers its retail accounts a $3.00 per case discount for all of the cranberry juice they purchase during the month of May. This discount will be deducted straight from the bill. This is an example of:
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an off-invoice allowance
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Payments offered by manufacturers to resellers for merchandising products or running special in-store programs are called:
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promotional allowances
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Money that must be paid to a retailer so it will take on a company's new product is known as:
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slotting allowances
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How can bloodborne pathogens enter the body?
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Open wounds
Exposed mucous membranes Minor breaks in the skin. |
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Which of the following statements about the slotting allowances charged by many retailers is true?
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Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.
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Some retailers have demanded payment for new products that do not reach a minimum sales target. These payments are called:
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failure fees
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Which of the following statements describes a major concern marketers have with trade allowances?
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Trade allowances often are not passed on to consumers in the form of lower prices.
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Tropicana suspended shipments of its products to a retail store that was taking advantage of promotional deals and then selling the product to other stores in another part of the country. The retailer was engaged in:
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diverting
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___ is a practice used by retailers whereby they stock-up on a product at a low deal or off-invoice price and resell it to consumers at higher prices when a promotional period has ended.
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Forward buying
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____ is a practice used by some retailers and wholesalers whereby they take advantage of a promotional deal and then sell some of the product purchased at the low price to another store outside of the reseller's trade area or to a middleman who will then resell the products.
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Diverting
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This program was developed by _____ whereby it has lowered the wholesale list price of many of its products while cutting promotional allowances to the trade and is known as _____.
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Procter & Gamble; everyday low pricing
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Companies such as Procter & Gamble use _____ to reduce fluctuations in the retail prices of their brands.
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everyday low pricing (EDLP)
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Many retailers are opposed to everyday low pricing (EDLP) because:
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A. EDLP takes away a lot of their trade promotion dollars
B. retailers prefer to use frequent price specials to attract store traffic
C. EDLP puts them at a disadvantage against the warehouse stores and mass merchandisers who already use everyday low pricing D. EDLP is not an effective method for a retailer that is trying to build market share E. of all of the above reasons |
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Which of the following statements explains why retailers such as grocery stores are critical of everyday low pricing?
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A. They prefer to operate on a high/low strategy of frequent price specials that can be used to attract shoppers.
B. They argue that everyday low pricing puts them at a disadvantage against warehouse stores and mass merchandiser.
C. They argue that some products are purchased on impulse and do not lend themselves to everyday low pricing. D. They rely on promotions such as end-aisle displays and price discounts to generate excitement and generate profits from many product categories, and everyday low pricing makes it difficult to do this. E. All of the above following statements explain why retailers are critical of everyday low pricing. |
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A _____ is a configuration of products that occupy a shelf section in a store offered to resellers by manufacturers.
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planogram
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Nordica provides sales personnel in ski shops with training classes, detailed manuals, and other tools to help them better understand how to sell the company's ski boots. This is an example of:
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sales training programs
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____ is an exhibition or forum where manufacturers can display their products to current and perspective buyers.
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A trade show
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Which of the following marketing and promotional functions can be performed at trade shows?
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A. product demonstration
B. prospect identification
C. entertaining and building relationships with customers
D. new product introduction
E. all of the above
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Which of the following marketing and promotional functions can be performed at trade shows?
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prospect identification
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_____ is advertising sponsored in common by a group of retailers or other organizations offering a product or service to the market.
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Horizontal cooperative advertising
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When New Balance sponsors a campaign advertising the availability of its running shoes at FootLocker stores, this is an example of _____ advertising.
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vertical cooperative
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____ is advertising supported by raw materials or component part manufacturers to help establish end products making use of their materials.
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Ingredient-sponsored cooperative advertising
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The "Visa on the Label" program under which Visa provides uniform and linen manufacturers with advertising monies based on the number of yards of Visa fabric they buy from the company is an example of:
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ingredient-sponsored cooperative advertising
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Advertising implemented by retailers and paid for (at least in part) by a manufacturer is called:
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vertical cooperative advertising
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The five resorts in the Bahamas that combined their promotional budgets to sponsor an "It's better in the Bahamas'" ad campaign, is an example of:
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horizontal cooperative advertising
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Intel and several different manufacturers of personal computers have joined to create and sponsor ads that promote both the computer and the microprocessor. Intel and the PC manufacturers are using:
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cooperative advertising
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When advertising and sales promotion efforts work well together and create sales results greater than those achievable from either element being used alone, they are producing a _____ effect.
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synergistic
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Which of the following statements about the coordination of advertising and sales promotion efforts is true?
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Product trial created through sales promotion techniques such as sampling or couponing is more likely to result in long-term use of the brand when accompanied by advertising.
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Which of the following statements about the changing role of sales promotion agencies is true?
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A. Sales promotion agencies are becoming more involved in the advertising and promotional planning process.
B. Sales promotion agencies often work on an equal basis with advertising agencies in the planning of promotional programs.
C. Sales promotion agencies are being used to develop long and short-term promotional strategies as well as for tactical implementation. D. Sales promotion agencies are being selected and evaluated on the basis of formal reviews. E. All of the above statements about the changing role of sales promotion agencies are true. |
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In their traditional role, sales promotion agencies:
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A. were very much accountable for all of the sales promotion activities
B. worked on an equal basis with the organization's ad agency C. were contracted on an annual retainer D. were used to develop long-term strategies E. were accurately described by none of the above |
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According to attribution theory, a consumer who purchases a product on promotion may not repurchase because the:
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purchase behavior is attributed to an external incentive
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Delta Airlines began offering triple miles to members of its frequent flyer program when they took any Delta flight from New York to Miami. Then United and other airlines immediately matched the offer, and it was believed for a long time that they all must continue the program or lose their competitive position. This situation is an example of:
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a sales promotional trap or spiral
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Which of the following actions has the potential to create a sales promotion trap or spiral in the fast-food industry?
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the use of 99-cent specials to promote popular items such as Burger King's Whopper and McDonald's Big Mac
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Periodically cosmetics manufacturers offer consumers the opportunity to buy a several different cosmetics for one low price usually in some tote bag or plastic case created for the promotion. Since several cosmetics manufacturers use this incentive method, it is likely to:
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create a sales promotional trap or spiral
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In many areas of the country, supermarkets have gotten in the trap of doubling or even tripling manufacturers' coupons resulting in:
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reduced profit margins
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