Grewal 6 Ce CH 15

Download as pdf or txt
Download as pdf or txt
You are on page 1of 118

Student name:__________

1) Informative advertisements would most likely be used during which stage of a product's life
cycle?
A) introduction
B) decline
C) maturity
D) harvesting

2) Yamaha Corp. has developed a device that reduces the volume of trumpets by more than 30
decibels - to the level of a whisper. A microphone picks up the sound, feeds it to an amplifier,
and then to headphones that allow the musician to hear the music at a normal volume. What
form of product advertising is the company likely to use?
A) reminder
B) competitive
C) informative
D) institutional

3) The key objective of an informative ad is to:


A) inform the target market.
B) identify the target market.
C) change the target market.
D) reinforce previous knowledge.

4) TransWave International is a small company that has developed a system that uses the web
and patented electronic sensors as an early-warning device for pipeline leaks. Pipeline safety
is becoming a big issue in the U.S. as more natural gas lines are being laid near populous
centres. The timing is right for this company to be extremely successful, but it must use
_____ advertising so oil companies will know of its product's existence.
A) reminder
B) competitive
C) informative
D) institutional

Version 1 1
5) When Dyson runs an advertisement comparing a Beam vacuum to the Dyson vacuum, they
are focused on which aspect of product advertising?
A) Institutional
B) Hierarchical
C) Pioneering
D) Persuasive

6) Advertisements that are competitive and show the relative strength of one brand over another
are known as:
A) Advocacy
B) Competitive institutional
C) Reminder
D) Persuasive

7) Reminder advertising is most likely to be used at which stage of the product life cycle?
A) introduction
B) growth
C) maturity
D) decline

8) An ad for Campbell's soup reads, "We haven't changed that great taste your family has
always loved." This is an example of _____ advertising.
A) reminder
B) comparative
C) persuasive
D) informative

9) When Godiva Chocolates runs a magazine ad with the headline "Spend Your Birthday With
The Ones You Love," it has created _____ advertising.
A) reminder
B) direct sales
C) pioneering
D) comparative

Version 1 2
10) Reminder product and brand advertising is typically used to:
A) inform the target market.
B) reinforce previous knowledge.
C) persuade the target market.
D) identify the target market.

11) The United Way of Canada runs monthly advertisements that are focused on building their
reputation and goodwill for future fundraising drives. These are known as:
A) product advertisements.
B) public service announcements.
C) institutional advertisements.
D) reminder advertisements.

12) The objective of institutional advertisements is to ____, rather than promote a specific good
or service.
A) support worthy charities
B) increase frequency of purchases of new products
C) increase the total amount of products used
D) build goodwill or an image for an organization

13) Institutional advertising can take all of the following alternative forms EXCEPT:
A) reminder institutional ads.
B) competitive institutional ads.
C) pioneering institutional ads.
D) product institutional ads.

14) An ad for an international consulting firm was intended to communicate the company
philosophy - that you can be big and nimble at the same time - rather than sell any one
particular service provided by the company. The ad is an example of _____ advertising.
A) informative
B) competitive
C) advocacy
D) reminder

Version 1 3
15) An ad for Mercedes Benz cars showed a heart-shaped box of chocolates with one of the
chocolates topped with the well-recognized Mercedes logo. There was no mention of the
company name or sign of a product in the ad. This ad was an example of _____ advertising.
A) competitive institutional
B) competitive product
C) reminder institutional
D) pioneering product

16) The Beef Council promotes a series of ads in which the tag line is "Beef-it's what's for
dinner." The purpose of these ads is to encourage the audience to eat more beef. This type of
ad is a:
A) reminder institutional ad
B) Persuasive institutional ad
C) pioneering institutional ad
D) product ad

17) All of the following are true statements about coupons, except:
A) a company's market share increases during the period immediately after coupons are
distributed
B) gross revenues can be decreased from purchases by already-loyal customers
C) Groupon and Facebook offer electronic coupons
D) a company's market share decreases during the period immediately after coupons are
distributed

18) North America's dairy farmers and milk processors use their "Got Milk?" campaign to
increase demand for milk as it competes against other beverages. This is a(n) __________
advertisement.
A) competitive institutional
B) competitive product
C) advocacy
D) pioneering product

Version 1 4
19) The Canadian Military advertises regularly to the public with images of soldiers intensely
engaged in army activities. These action advertisements are examples of which type of
advertising?
A) Reminder
B) Competitive
C) Pioneering
D) Advocacy

20) Coupons, sweepstakes, and samples are examples of:


A) trade promotions.
B) consumer-oriented sales promotions.
C) manufacturer's promotions.
D) channel promotions.

21) When preparing his grocery shopping list, Winston actively scans the supermarket ads in the
local newspaper for coupons, rebates, and sale items. While in the store, Winston also looks
for free samples of new products and products he hasn't purchased previously. The coupons,
rebates, sale items, and free samples are all examples of:
A) advertising.
B) publicity.
C) personal selling.
D) sales promotion.

22) For marketers, the primary objective of coupons is to:


A) stimulate demand.
B) increase trial and retaliate against competitor's actions.
C) encourage present customers to buy more, and minimize brand switching behaviour.
D) encourage new product trial.

Version 1 5
23) The mother handed her college-aged son a piece of paper and said, "By redeeming this you
will receive 25 cents off your next purchase of Birdseye lima beans." Birdseye is using a
_____ to stimulate demand for its lima beans.
A) rebate
B) sample
C) coupon
D) deal

24) Which type of sales promotion is demonstrated by the following example: "By redeeming
this you will receive 25 cents off your next purchase of Jolly Green Giant lima beans"?
A) Rebate
B) Sample
C) Coupons
D) Deal

25) Short-term price reductions, commonly used to increase trial among potential customers or to
retaliate against a competitor's actions are called:
A) deals
B) coupons
C) promotions
D) contests

26) The sign at the entrance to the men's store reads, "Buy one shirt, get a second shirt of equal or
lower value for only one dollar." Which type of sales promotion is the men's store using?
A) a deal
B) a contest
C) a premium
D) a rebate

Version 1 6
27) For marketers, the primary objective of a deal is to:
A) extend a product's life cycle.
B) increase trial among potential customers as a retaliation against competitors' actions.
C) encourage present customers to buy more, which should minimize brand switching
behaviour.
D) encourage new product trial.

28) The radio commercial said, "Send three proofs of purchase and $3 for postage and handling
to receive your monogrammed T-shirt." This ad was offering customers a:
A) sample.
B) deal.
C) premium.
D) rebate.

29) A print ad for Allegra allergy medication offers a free purple seat cushion to all who request
additional information about the drug. This seat cushion is an example of a:
A) sample.
B) deal.
C) premium.
D) rebate.

30) What type of sales promotion is McDonald's using when it sells drinking glasses
commemorating the 100th birthday of Walt Disney to consumers who also purchase a 'Happy
Meal'?
A) a deal
B) a premium
C) a rebate
D) a coupon

Version 1 7
31) For marketers, the primary objective of a premium is to:
A) encourage customers to return frequently or to use more of the product, and to build
goodwill.
B) increase trial and retaliate against competitors' actions.
C) encourage present customers to buy more; minimize brand switching behaviour.
D) encourage new product trial.

32) All of the following are correct statements about contests, EXCEPT:
A) they increase consumer purchases.
B) they obtain a list of names and addresses.
C) online contests are often highly interactive.
D) they encourage new product trial.

33) The ad advised readers to "Try your skill at using our cream cheese to create an exciting new
recipe and you may be the winner of a trip for two to Hawaii." This ad was promoting a:
A) premium.
B) sweepstake.
C) deal.
D) contest.

34) In the first week of April, the Ellen DeGeneres television show premieres a show that is full
of errors and asks viewers to record all the errors they can and send the list to an address in
California. The person who has found the most errors wins a chance to visit the set where the
show is taped and have a walk-on role. This is an example of a:
A) premium.
B) sweepstake.
C) deal.
D) contest.

35) For marketers, the primary objective of sweepstakes is to:


A) generate store traffic.
B) increase trial and retaliate against competitors' actions.
C) encourage present customers to buy more; minimize brand switching behaviour.
D) encourage new product trial.

Version 1 8
36) At a trade show for clean-technologies, a manufacturer of water treatment equipment asks
passersby to drop off their business card into a fishbowl to win a free iPad Air. This is an
example of a:
A) Premium
B) Sweepstake
C) Deal
D) Contest

37) The Niagara Region Grape Growers Association has an ongoing ad campaign in which it
encourages people to think of pistachios when they think of good times and good friends.
The ad asks readers to log onto www.pistachios.org to register to win a prize of pistachios for
a year. The association is using a _____ to measure the effectiveness of its ads.
A) lottery
B) contest
C) premium
D) sweepstake

38) Taco Bell introduced its new low-fat Border Lights fare by giving away 8 million free tacos
and burritos in one day. Taco Bell used a sales promotion technique called:
A) a self-liquidating premium.
B) a special deal.
C) a rebate.
D) sampling.

39) When Allan went to get his newspaper, he found the paper in a plastic bag along with a box
containing one dose of Alka-Seltzer heartburn relief medication. Which type of sales
promotion is Alka-Seltzer using?
A) a sample
B) a deal
C) a premium
D) a point-of-purchase display

Version 1 9
40) Sampling is an appropriate strategy for which type of products?
A) products which are classified as shopping goods
B) products in the decline stage of their product life cycle
C) commodity products like salt, sugar, and baking soda
D) products which are perishable

41) Michael Angelo's Pepperoni Mini Calzones are easy-to-prepare snacks, but the manufacturer
believes customers are not buying the product as predicted because they are unfamiliar with
calzones. The manufacturer is interested in employing a sales promotion technique that will
communicate the ease of preparation and encourage customers to try the product. Which
method would it most likely employ?
A) Use a demonstrator hired by the company to prepare the snack in a grocery store and
give away the snacks to the shoppers.
B) Provide a premium to build customer goodwill by receiving reduced price
merchandise.
C) Produce a point-of-purchase display that will be placed near a grocer's check-out
register.
D) Use a rebate to encourage customers to purchase the snack and increase customer
confidence in the product.

42) A sales promotion designed to encourage and reward repeat purchases by acknowledging
each purchase made by a consumer and offering a premium as purchases accumulate is
known as a:
A) Merchandise lining
B) Product enhancement
C) Loyalty program
D) Retail positioning

Version 1 10
43) A Taste of Greece, a restaurant chain that is known for its Extra Juicy Hero sandwich, wants
to encourage repeat purchases and create customer loyalty. Which sales promotion should it
employ?
A) a two-for-the-price-of-one deal
B) a coupon for a free soft drink with a Hero purchase
C) a game with food prizes
D) a trading stamp program, which allows buyers to earn free food after making a certain
number of purchases

44) For marketers, the primary objective of a point-of-purchase display is to:


A) eliminate the need for any special pricing promotion.
B) increase trial and retaliate against competitors' actions.
C) encourage present customers to buy more; minimize brand switching behaviour.
D) increase product trial and provide in-store support for other promotions.

45) A brochure in the literature sent to retailers began with the following statement: "Retailers,
these new sunglasses come with their own attractive free-standing carousel that fits perfectly
next to your cash register." Which sales promotion does this exemplify?
A) a sample
B) a free-standing insert
C) a premium
D) a point-of-purchase display

46) As Roderick was checking out of Office Depot the sales clerk said, "You'll probably want to
take advantage of this offer." The offer read, "Mail in three UPCs and cash register tapes
with the prices circled to receive a check for $25." The offer was an example of a:
A) point-of-purchase.
B) deal.
C) coupon.
D) rebate.

Version 1 11
47) Person of Interest, a detective-based crime solving show has their detectives walking around
with Samsung tablets to capture pictures of the crime scene. This is an example of:
A) a product deal.
B) a product premium.
C) a product sample.
D) a product placement.

48) The frequent appearance of the Sears Wish Book Catalogue on the Schitt's Creek TV show is
an example of:
A) a product deal.
B) a product premium.
C) a product sample.
D) a product placement.

49) The frequent appearance of the Ford Explorer on the hit series 24 is an example of:
A) a product deal.
B) a product premium.
C) a product sample.
D) a product placement.

50) Trade-oriented sales promotions are:


A) promotions where charitable contributions of a firm are tied directly to the customer
revenues produced through the promotion of one of its products.
B) methods used to get a non-personal, indirectly paid presentation of a company or its
products. Examples are news releases, news conferences, and public service
announcements.
C) advertisements that show actual consumers using the product.
D) sales tools directed to wholesalers, retailers, or distributors used to support a
company's advertising and personal selling.

Version 1 12
51) MojoMax Health, a maker of an all-natural recovery product, sends their founder to
Goodness Me! to discuss with the floor staff how best the product should be sold. This is an
example of:
A) trade-oriented sales promotions.
B) consumer promotions.
C) manufacturers' promotions.
D) sales promotions.

52) Three commonly used trade promotions are:


A) coupons, rebates, and discounts.
B) allowances and discounts, cooperative advertising, and training of distributors'
salesforces.
C) cooperative advertising, merchandise allowances, and points-of-purchase displays.
D) allowances and discounts, consumer promotions, and merchandise allowances.

53) The Globe and Mail offers Ford a 10 percent discount on running their advertisement in the
Globe Drive section if Ford can show that they received a 2 percent increase in leads because
of the ad. This is an example of a(n):
A) organizational allowance
B) merchandise allowance
C) case allowance
D) finance allowance

54) Pepsi offers one free pack of Doritos chips for every ten cases of Diet Pepsi purchased. This
is an example of a:
A) functional allowance
B) merchandise allowance
C) case allowance
D) finance allowance

Version 1 13
55) When Lenovo computers pays half the shipping costs that Best Buy incurs when picking up
ten skids of new computers from Lenovo's warehouse, Lenovo is offering a:
A) promotional allowance
B) merchandise allowance
C) case allowance
D) finance allowance

56) Programs in which a manufacturer pays a percentage of a retailer's local advertising expense
for advertising the manufacturer's products are known as:
A) Trade promotion programs
B) Consumer promotion programs
C) Cooperative advertising programs
D) Cause-related marketing programs

57) While reading the newspaper, Belinda noticed an advertisement containing manufacturer's
coupons from Hewlett-Packard (HP) redeemable only at Walmart stores. This ad is an
example of a:
A) cooperative advertising.
B) case merchandise advertising.
C) finance advertising.
D) merchandise allowance.

58) A hardware store owner placed an advertisement for Sylvania light bulbs in the local
newspaper. Sylvania provided the storeowner with several high-quality, camera-ready
sample advertisements. In addition to supplying the advertising formats, Sylvania also paid
50 percent of the cost of the advertisement. Sylvania was using _____ in an attempt to
encourage both better advertising quality and greater advertising quantity in the efforts of
local resellers of its product.
A) strategic promotional implementation
B) cooperative advertising
C) prepaid publicity
D) distributor kickbacks

Version 1 14
59) "To inform" is the promotional objective of which stage of the product life cycle?
A) early growth
B) growth
C) introduction
D) maturity

60) Joel received a pamphlet in the mail from a local real estate agent. This agent communicated
that there were people who were looking to move in the area and he was offering a free home
appraisal for any homeowners that were thinking of selling their homes. For the agent, this is
an example of a:
A) sale.
B) lead generation.
C) traffic generation.
D) direct order.

61) The promotional objective in the maturity stage of the product life cycle is to:
A) remind.
B) inform.
C) persuade.
D) deny.

62) "To remind" is the promotional objective of which stage of the product life cycle?
A) early growth
B) growth
C) accelerated development
D) maturity

63) Personal selling:


A) occurs when Keith sees an advertisement in Sports Illustrated.
B) is a one-way flow of communication between buyer and seller.
C) occurs when Becca sees a character on Friends eating a Snickers bar.
D) occurs when Girl Scouts ask you to buy a box of cookies.

Version 1 15
64) The face-to-face activity that occurs when you go to a car dealer and speak with a
representative is likely:
A) Sales management
B) Personal selling
C) Sales promotion
D) Transformational selling

65) Which of the following statements is NOT an example of personal selling?


A) A Tupperware dealer demonstrates the company's products to you and your friends in
the comfort of your own home.
B) You purchase an 18-carat gold wristwatch through an interactive computer network.
C) You purchase a mountain bike after reading an ad in an outdoor adventure magazine.
D) You purchase a three-year subscription to Martha Stewart Living as the result of a
telephone call.

66) Which of the following does NOT describe a situation in which personal selling occurs?
A) a clerk at the jewelry counter
B) a telemarketer selling magazine subscriptions
C) a stockbroker using a video teleconference to tell customers about a new retirement
plan
D) a mail-order catalogue featuring homemade candy

67) Relationship selling is described by all of the following, except:


A) makes customer value creation possible.
B) builds ties to customers based on a salesperson's attention and commitment to
customer needs over time.
C) focuses on creating short-term sales.
D) involves mutual respect and trust among buyers and sellers.

68) Customer value creation occurs through focusing on:


A) conference selling
B) relationship selling
C) formula selling
D) seminar selling

Version 1 16
69) Bombardier makes corporate jets and its strategy involves streamlining production activities,
maintaining its reputation for quality, and reducing its costs. It has developed the Continental,
an airplane assembled from just a dozen large component parts. All parts are supplied by
carefully chosen independent companies that share the development costs and market risk
with Bombardier as part of being its suppliers. To sell sub-assemblies to Bombardier, the
salespeople for its supplier companies used:
A) order processing.
B) order taking.
C) customer value creation.
D) relationship selling.

70) How does relationship selling create customer value?


A) by expressing periodic concerns about sizes of orders
B) by providing discounts based on the length of the customer relationship
C) by using a common sales promotion for each sales call
D) by identifying creative solutions to customer problems

71) Which process consists of the following five stages: generate and qualify leads, preapproach,
presentation, close, and follow-up?
A) The product marketing process
B) The strategic marketing process
C) The personal selling process
D) The consumer purchase decision process

72) In the personal selling process, a telemarketer who calls and asks the head of the household,
"If you were to die tomorrow, would your family be cared for?" is engaged in:
A) stimulus-response selling.
B) closing the sale.
C) generate and qualify leads
D) order taking.

Version 1 17
73) CitiBank pays to have a business reply card bound into magazines adjacent to its
advertisement. The ad asks people to return the card for more information on how a person
can apply for a credit card. CitiBank is engaging in:
A) cold-canvassing.
B) order taking.
C) sales follow-up.
D) generate and qualify leads

74) Which of the following statements describes the major difference between a prospect and a
qualified prospect?
A) Prospects are more likely than qualified prospects to become customers.
B) During the sales presentation, prospects are more likely to raise objections than
qualified prospects.
C) There are far more qualified prospects than prospects.
D) Qualified prospects have not only the need or desire for your product, but they have
the ability and authority to purchase it; prospects are missing either ability, or the
authority to purchase.

75) Salespeople should focus their time on selling products to:


A) opinion leaders
B) leads
C) prospects
D) qualified prospects

76) During the prospecting stage of personal selling, a salesperson might be encouraged to do all
of the following EXCEPT:
A) look for more lead-generating sources.
B) develop a better set of qualifying criteria.
C) try to find out the customers' important buying criteria.
D) use cold canvassing approach.

Version 1 18
77) At which stage is Twitter likely to be used during the personal selling process?
A) generating and qualifying leads
B) preapproach
C) introduction
D) initial canvassing

78) Alice Faulkner is a professional salesperson. She earns her living by selling advertising for
The New York Times newspaper. In addition to selling advertising to her regular accounts,
Alice is responsible for generating new advertising accounts for the newspaper. In order to
fulfill her responsibilities, Faulkner works hard to make sure the potential customers she sells
to are qualified prospects. How can Faulkner know if the prospects she is selling to are
qualified prospects?
A) Qualified prospects have an interest in buying display advertising in the paper.
B) Qualified prospects have the money to buy display advertising in the paper.
C) Qualified prospects have the authority to make the decision to buy the advertising.
D) Qualified prospects have a need for the advertising, can afford to buy it, and have the
authority to make the purchase decision.

79) At which stage in the personal selling process would the salesperson obtain further
information on the prospect and decide on the best method of approach?
A) prospecting
B) preapproach
C) approach
D) presentation

80) Identifying the prospect's role in the buying center would be typically done at the _____
stage of the personal selling process.
A) prospecting
B) preapproach
C) approach
D) presentation

Version 1 19
81) At which stage would a salesperson learn if her prospect liked to talk about sports before
getting down to business or preferred to waste no time with idle chatter?
A) prospecting
B) preapproach
C) approach
D) presentation

82) Nancy knows that Jim likes to talk about hockey and his favourite team is the Toronto Maple
Leafs. Prior to their meeting today, Nancy checks the boxscore of the Leafs game last night
and reads a few articles discussing the game. She starts her meeting with Jim asking him if he
watched the game in order to gain his attention and stimulate interest in speaking further.
This is likely to occur at which stage?
A) prospecting
B) preapproach
C) approach
D) qualifying

83) Which stage has the following objectives: gain the prospect's attention, stimulate interest, and
build the foundation for the sales presentation itself and the basis for a working relationship?
A) prospecting
B) preapproach
C) presentation
D) close

84) Stephen is meeting with a potential wholesale diamond buyer. He picks up his newly dry
cleaned suit, and stops by the barber for a shave and haircut. Stephen is likely getting ready
for which stage?
A) prospecting
B) preapproach
C) presentation
D) follow-up

Version 1 20
85) Which stage in the personal selling process will a salesperson begin converting a prospect
into a customer by creating a desire for the product he or she is selling?
A) preapproach
B) approach
C) presentation
D) close

86) Excuses for not making a purchase commitment or decision are called:
A) rationalizations.
B) constraints.
C) objections.
D) refusals.

87) Which of the following statements should the salesperson use to acknowledge and convert
the prospect's objection into a reason for buying?
A) "I think I might be able to explain that better to you after showing you this diagram."
B) "Yes, you're right, it is lighter, but that is done intentionally to make your work
easier."
C) "That's true. It does have a shorter shelf life, but that hasn't really been a problem. It is
so popular it never gets to stay on the shelf that long anyway."
D) "Where did you hear that? Your source must have erroneous information."

88) At which stage of the personal selling process would a salesperson obtain a purchase
commitment from the prospect?
A) approach
B) presentation
C) close
D) follow-up

Version 1 21
89) When a salesperson in the computer store asks "Will that be a charge or cash?", they have
executed which stage of the selling process?
A) approach
B) presentation
C) handling objections
D) closing

90) SRC Refrigeration sells refrigerated display cases for flowers. When its salesperson asks a
retailer, "Do you want to order the two-door model 350F or the Model 719F with the single
door?" he has executed which stage of the selling process?
A) approach
B) presentation
C) handling objections
D) close

91) At which stage in the personal selling process would the salesperson ensure the customer is
satisfied with the product?
A) assumptive close
B) final close
C) urgency close
D) follow-up

92) The final stage in the personal selling process is the:


A) presentation.
B) assumptive close.
C) trial close.
D) follow-up.

Version 1 22
93) Encyclopedia Britannica pays to have a business reply card bound into magazines adjacent to
its advertisement. The ad asks people to return the card for more information on how its
encyclopedias can help children do better in school. Encyclopedia Britannica is engaging in
A) generating leads
B) order taking.
C) sales follow-up.
D) data-mining.

94) Personal selling can take place:


A) through print catalogs.
B) over the Internet.
C) through the mail.
D) through newspaper ads.
E) using distribution centers.

95) In Arthur Miller’s play Death of a Salesman, Willie Loman portrays:


A) a leading example of an ethical salesman.
B) the loneliness of a traveling salesman.
C) the ruthlessness of a pushy salesman.
D) the lifestyle and success of people in sales.
E) the value salespeople provide to consumers.

96) Tyler loves the lifestyle associated with being a salesperson, allowing him to take a day off
during the week and make it up on the weekend. He most likely values the ________
associated with creating his own schedule.
A) structure
B) rigidity
C) flexibility
D) selling team approach
E) compensation

Version 1 23
97) One of the advantages of personal selling over other types of marketing communication is
that:
A) salespeople can build strong relationships with customers.
B) personal selling almost always costs less than other marketing communication
alternatives.
C) personal selling has greater reach than advertising.
D) cold calling is easier than direct mail advertising.
E) personal selling requires less training than other types of selling.

98) One of the disadvantages associated with personal selling is


A) cold calling is easier than direct mail advertising.
B) a salesperson often changes the message based on consumers’ needs.
C) it is expensive.
D) it can be directed toward those customers with the highest potential.
E) it is structured and finite.

99) Jeanette recognizes that one of her roles as a company sales rep is to be the firm’s frontline
emissary. As such, she strives to build strong relationships with customers and:
A) use whatever means necessary to capture every possible sale.
B) focus on the short term.
C) take a long-term perspective.
D) disparage competitors’ offerings.
E) shift organizational control from production to marketing.

100) As marketing manager for a newly created software company, Colette is deciding whether or
not to hire a company sales force. To make this decision, Colette needs to consider whether
or not:
A) her firm should attend trade shows.
B) her firm has a “hot” product.
C) having a sales force is worth more than it costs.
D) she will be able to find an effective supply chain manager.
E) online advertising will work.

Version 1 24
101) Sales representatives add value for customers by:
A) educating them about competitive products.
B) causing adding complex business problems.
C) adding time to the sales process.
D) simplifying communication with the firm.
E) reducing the firm’s marketing costs.

102) Experts estimate that the average cost of a single B2B sales call is about
A) $50.
B) $190.
C) $600.
D) $1,000.
E) $1,500.

103) Piper made sure that her customers felt comfortable contacting her when they needed
something, and she focused on the long term in her dealings with them Piper is a ________-
oriented salesperson.
A) needs
B) relationship
C) sales
D) profit
E) rewards

104) The Consumer Electronics Show is an example of a(n):


A) vendor conference.
B) product demonstration.
C) industry convention.
D) trade show.
E) consumer meeting.

Version 1 25
105) Telemarketing and cold calls have become less popular as sales tools because:
A) their success rate is low.
B) they are inexpensive.
C) they are protected by state and federal laws.
D) the salesperson is able to establish the customer’s needs ahead of time.
E) they require appointments, which takes time away from the actual selling of the
product.

106) When Parker was talking with his customer about the new accounting system, his customer
mentioned that she thought the new system was not going to fit into their budget. Parker
explained that once her people were trained on it, it would require less time to process orders,
and therefore save her money in payroll. Which part of the sales presentation is demonstrated
in this example?
A) generating and qualifying leads
B) the presentation
C) overcoming reservations
D) the preapproach
E) follow-up

107) Which of the following are service quality dimensions related to follow-up?
A) ethics
B) reliability
C) foresight
D) rigidity
E) determination

108) Whether or not a salesperson will go through all five steps of the selling process depends on
the sales situation and:
A) the use of sales representatives versus independent reps.
B) the effectiveness of role-playing.
C) the buyer’s readiness to purchase.
D) the number of sales support personnel available.
E) how the person was trained.

Version 1 26
109) Although a sales representative may skip a step in the personal selling process or might
sometimes have to go back and repeat steps, there is logic in the sequence. Which of the
following describes the personal selling process?
A) no leads are qualified before a salesperson can work through the preapproach
B) the customer’s reservations must be addressed before initiating any sales pitch
C) closing the sale is the final—and most satisfying—part of the process
D) carefully working through the preapproach will make the next step—the sales
presentation—more effective and efficient
E) follow-up will set up problems for the representative

110) Amaya, who works in sales for her firm, has learned about her customer during the
prequalification stage, but now she must conduct additional research and develop plans for
meeting her customer. In the past, she would have maintained this information manually, but
today she is able to access such information through her company’s:
A) direct marketing system.
B) B2B selling system.
C) customer relationship management system.
D) customer response management system.
E) indirect marketing system.

111) Dulcie went to the Gap ready to buy a new sweater but was not sure which color or style she
wanted. The sales representative, sensing Dulcie’s buying mode, most likely began with the
________ stage of the selling process.
A) generate leads
B) preapproach
C) closing the sale
D) follow-up
E) sales presentation

Version 1 27
112) Monique works as a salesperson in a retail clothing store. Of the five stages in the selling
process, Monique is least likely to engage in:
A) generating and qualifying leads.
B) making the preapproach.
C) closing the sale.
D) following up.
E) making a sales presentation.

113) Celine works in the office of a building materials company. One of her jobs is to identify
new building projects and to determine who will make the building materials purchase
decisions. Celine is involved in the ________ step of the selling process.
A) generate leads
B) preapproach
C) closing the sale
D) follow-up
E) sales presentation

114) The sales process consists of ________ steps.


A) five
B) three
C) two
D) four
E) six

115) Potential customers are called:


A) marks.
B) clients.
C) leads.
D) shoppers.
E) patrons.

Version 1 28
116) Marie visited an office building and went door to door to hand out business cards and sell
office products. Marie was making:
A) leads.
B) order calls.
C) preapproaches.
D) follow ups.
E) cold calls.

117) Several months ago, Viola took over the sales territory managed by a very successful
salesperson. Viola should use ________ as a first source of leads.
A) current customers
B) chamber of commerce gatherings
C) trade shows
D) census data
E) competitor databases

118) Gabina is a new agent for a financial services company. She decides to join the local
chamber of commerce, the local association of businesswomen, and the local chapter of the
United Way organization. Gabina is attempting to use ________ to generate leads.
A) current customers
B) networking
C) trade shows
D) the Internet
E) customer complaints

119) Trade shows are a particularly good source of B2B sales leads because:
A) they are open to the general public.
B) they are almost always sanctioned by the government.
C) people who attend are interested in the products and services being offered.
D) consumers tell retailers which shows to attend.
E) they are an inexpensive way to generate leads.

Version 1 29
120) Imagine that a management consulting firm wants to sell a bank a new system for finding
checking account errors. The consulting firm’s salesperson has learned about the customer
during the qualification stage, and the salesperson should now:
A) think about whether it’s worth the effort to try to make the sale.
B) determine whether the bank can pay more than the base rate for the product.
C) figure out how to immediately close the sale.
D) decide whether he should go to work for the bank and run the new system.
E) conduct additional research and develop plans for meeting with the customer.

121) If your company hired you to make sales calls via the telephone, it hired you to perform:
A) cold calling.
B) telemarketing.
C) relationship selling.
D) inbound marketing.
E) role reversal selling.

122) Peter is in the process of qualifying leads he received from corporate headquarters. Peter will
assess:
A) whether or not it is worthwhile to pursue these potential customers.
B) how often these customers have bought his products in the past.
C) whether he should use role-playing in his sales presentation.
D) what objections he is likely to receive from the customers.
E) how to preapproach these people.

123) One reason B2B salespeople spend considerable time qualifying potential customers is that:
A) they want to have absolutely everything in order before approaching a potential
customer.
B) it can be costly to prepare and make a presentation to a business customer.
C) too many business buyers at trade shows are really people from competing firms
trying to obtain competitive information.
D) independent agents get the best leads; the company sales representatives need to work
harder.
E) they want to determine if telemarketing is required.

Version 1 30
124) Fredo sells health insurance packages for small businesses. He has been given the names of
ten new businesses in his town. During the qualifying leads stage of the selling process,
Fredo will likely try to assess which of the ten businesses:
A) would respond best to a sales contest.
B) are closest to his office.
C) need health insurance packages and can afford them.
D) have order getters and order takers.
E) are willing to meet with him.

125) The ________ stage occurs prior to meeting the customer for the first time and extends the
qualification of leads.
A) qualify leads
B) preapproach
C) closing the sale
D) follow-up
E) sales presentation

126) The preapproach stage occurs ________ and extends the qualification of leads procedure.
A) after the sales presentation
B) prior to the sales presentation
C) before closing the sale but after follow-up
D) after closing the sale but before follow-up
E) at the beginning of the sales presentation

127) Before approaching a potentially major B2B customer, a salesperson will usually:
A) conduct an initial sales presentation to lower-level personnel.
B) estimate the potential commission associated with making the sale.
C) try to find out everything possible about the firm and its needs.
D) ask competitors what they know about the prospect.
E) assess the corporate climate.

Version 1 31
128) During the preapproach stage, a salesperson usually conducts additional research about
prospects and:
A) assists the prospect through the buying process.
B) decides what role to play during the handling reservations stage.
C) develops plans for meeting with the customer.
D) offers initial concessions to gain the sale.
E) determines which of the customer’s buying support team need to be present at the
sales presentation.

129) Octavia has identified an attractive potential customer for her biodiesel home power system.
She knows the customer is concerned about the environment and has considerable financial
resources. The customer is also a respected leader among wealthy environmentalists in the
area. Next Octavia will:
A) evaluate alternative systems available from competitors to see which is best for the
customer.
B) send the customer a list of frequently mentioned objections and responses to each.
C) decide if she wants to contact the customer.
D) establish goals for meeting with the customer.
E) call the customer and offer a first-time discount.

130) Isla has found out everything she can about a newly qualified lead. She has practiced making
her sales presentation and has determined what goals she has for the first meeting. Isla has
finished the ________ stage of the selling process.
A) qualify leads
B) preapproach
C) closing the sale
D) follow-up
E) sales presentation

Version 1 32
131) After exchanging greetings and getting to know the customer a bit in an initial sales call, the
first goal of a sales presentation is to:
A) close the sale.
B) offer alternatives.
C) estimate the total cost to the customer.
D) requalify the customer.
E) create interest.

132) The beginning of the sales presentation may be the most important part of the selling process,
because this is where the salesperson establishes:
A) where the customer is in the buying process.
B) how much time has been allocated for the presentation.
C) which of the alternative products to demonstrate.
D) whether to quote a full price or discount price.
E) which type of follow-up will be needed.

133) Like any effective salesperson, Franz walks into a customer’s office, shakes hands, looks
the customer in the eye, and smiles. After exchanging pleasantries, Franz will immediately
try to create interest in his company’s product and establish:
A) which type of follow-up will be needed.
B) how much time has been allocated for the presentation.
C) which of the alternative products to demonstrate.
D) whether to quote a full price or discount price.
E) where the customer is in the buying process.

134) Like any effective salesperson, Tiana walks into a customer’s office, shakes hands, looks
the customer in the eye, and smiles. After exchanging pleasantries, Tiana will try to create
interest in her company’s product. Tiffany will likely ________ to adapt or customize her
presentation to match the customer’s needs.
A) use a hypothetical situation
B) ask a series of questions
C) examine the customer’s office
D) make a variety of assumptions
E) refer to past sales

Version 1 33
135) Brody knows that he needs to ask a series of questions early in his sales presentation, but he
also knows that he:
A) should take control of the conversation.
B) should ask questions only if he already knows the answers.
C) needs to first determine whether the customer is an order getter or order taker.
D) needs to listen carefully to the answers.
E) should follow a strict structure with his questions.

136) Often, inexperienced salespeople mistakenly believe that during the sales call, they should:
A) listen carefully to the customer.
B) pay attention to body language.
C) note the office environment.
D) act positively.
E) do all the talking.

137) Karter is preparing for an important sales presentation. He knows that customers are more
likely to ________ during his presentation than during other stages of the selling process.
A) be identified as qualified leads
B) agree with everything he says
C) raise objections
D) offer advice
E) return unacceptable merchandise

138) Evelyn knows that prospective customers are likely to raise reservations about price and
quality. She needs to convince customers that her products represent:
A) time savings.
B) a good value.
C) the least expensive choice available.
D) average quality for an average price.
E) an environmental achievement.

Version 1 34
139) Effective salespeople anticipate and handle:
A) external environmental changes.
B) corporate takeovers.
C) buyers’ reservations about the product.
D) role-playing conflict.
E) supply chain problems.

140) Often the best way to handle customers’ reservations is to relax, listen, and:
A) reassess your preapproach strategy.
B) consider outsourcing.
C) immediately call your sales support team.
D) ask questions to clarify the issues.
E) reevaluate your expected order.

141) For salespeople who practice ________, an unsuccessful close one day may lay the
groundwork for a successful close during the next meeting.
A) role-playing
B) sales support promotion
C) relationship selling
D) delayed preapproach
E) transactional selling

142) Studies have found that customers are typically ready to make a purchase decision well
before salespeople attempt to close the sale. Salespeople can learn when to close the sale by:
A) listening to customers and paying attention to their body language.
B) keeping accurate records regarding how long it took to close sales in the past.
C) asking sales personnel to estimate the average time before customers are ready to
close.
D) using the same selling process for all customers.
E) monitoring and mimicking the closing process used by their sales managers.

Version 1 35
143) The follow-up offers a prime opportunity for a salesperson to solidify the customer
relationship through great service quality. The five service quality dimensions include:
A) reliability.
B) determination.
C) sympathy.
D) loyalty.
E) intangibles.

144) The ________ stage of the selling process offers a prime opportunity for salespeople to
solidify customer relationships through great service quality.
A) generating and qualifying leads
B) follow-up
C) sales presentation
D) closing the sale
E) preapproach

145) In the selling process, the saying “It ain’t over till it’s over” refers to the ________
stage of the process.
A) generating and qualifying leads
B) preapproach
C) sales presentation
D) closing the sale
E) follow-up

146) The attitudes that Bettina’s customers develop after they have purchased her yearly lawn
care service will become the basis for determining whether or not they renew each year. She
needs to convey ________ by delivering the right services the right way.
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Version 1 36
147) The attitudes that Bettina’s customers develop after they have purchased her yearly lawn
care service will become the basis for determining whether they renew each year. She needs
to be ________, by quickly addressing any problems that occur.
A) reliable
B) responsive
C) assuring
D) empathic
E) tangible

148) Selima has been having a difficult time working with a particular buyer while using the
personal selling process, and she has asked her manager, Cezar, for some ideas about how to
close the sale effectively. Cezar asks her a number of questions to help sort out the
difficulties. Which of the following questions would Cezar be least likely to ask?
A) “What does the buyer’s body language tell you about her readiness to buy?”
B) “Did you skip any steps in the process?”
C) “Are there any reservations that have not been addressed to the buyer’s
satisfaction?”
D) “Have you completed the follow-up to ease the buyer’s mind?”
E) “Should you go back to an earlier stage in the process and start the process over
from there?”

149) The attitudes that Bettina’s customers develop after they have purchased her yearly lawn
care service will become the basis for determining whether they renew each year. She needs
to convey ________ by guaranteeing his work in writing.
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

Version 1 37
150) Henri sells building materials to local contractors. He wants to build long-term relationships
with his contractors through effective follow-up. After delivering the materials ordered,
Henri can demonstrate ________ by checking with his contractors right after the delivery and
addressing any problems promptly.
A) assurance and profitability
B) responsiveness and empathy
C) tangibility and competence
D) profitability and reliability
E) reliability and tangibility

151) The attitudes that Bettina’s customers develop after they have purchased her yearly lawn
care service will become the basis for determining whether they renew each year. She needs
to demonstrate the ________ dimension of service quality by showing consistently well-
maintained yards with neat, professional personnel.
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles

152) Since Tobias’ Auto Parts has had trouble with its windshield wiper manufacturer in the
past, it is requesting a guarantee from the company before it will place another order. Which
of the service quality dimensions is being addressed in this scenario?
A) ethics
B) assurance
C) tangibles
D) responsiveness
E) empathy

153) Getting a commitment from the customer to purchase your product is also known as
A) asking for the bacon.
B) closing the sale.
C) wrapping it up.
D) preparing for follow-up.
E) handling reservations.

Version 1 38
154) Liam told the sales rep he wasn’t buying his product because it cost too much. In terms of
the personal selling process this is called a(n):
A) excuse.
B) ruse.
C) reservation.
D) rebuttal.
E) rebuff.

155) The AIDA model is also known as the ________ model.


A) think, feel, say
B) think, say, do
C) think, feel, do
D) feel, like, do
E) like, think, feel

156) The AIDA model represents a series of mental stages a consumer goes through and includes
awareness, action, interest, and:
A) desire.
B) decision making.
C) decoding.
D) deliberation.
E) debate.

157) Harley-Davidson has ________ if a consumer responds “Harley” when asked about
American-made motorcycles.
A) limited recall
B) interest
C) prompted recall
D) limited awareness
E) top-of-mind awareness

Version 1 39
158) Disney starts off its stars with Disney Channel shows, records them on the Disney-owned
Hollywood Record label, plays the songs in heavy rotation on Radio Disney and Disney
movie soundtracks, organizes concert tours with Disney-owned Buena Vista Concerts, and
sells tie-in merchandise throughout Disney stores. The goal of each of these elements is:
A) interest.
B) aided recall.
C) lagged effect.
D) brand awareness.
E) top-of-mind awareness

159) If Dove Cameron, star of Disney’s Descendants, appears on Good Morning America (on
ABC, which is also owned by Disney) to promote an upcoming album or other personal
venture, the viewing audience is more likely to tune in to the next Descendants movie, watch
her old Disney show, Liv and Maddie, or even purchase some of her existing music
(produced by Hollywood Records, another subsidiary of Disney). This illustrates the “desire”
element of:
A) “I am aware of it.”
B) “What is it?”
C) “I need more information.”
D) “I want it.”
E) “I know what it is.”

160) The fact that a particular advertisement might not cause a consumer to make an immediate
purchase is referred to as:
A) delayed interest.
B) unaided recall.
C) the lagged effect.
D) delayed awareness.
E) top-of-mind awareness.

Version 1 40
161) The difference between advertising and publicity is that advertising is:
A) more effective in reaching consumers.
B) almost always used in conjunction with consumer satisfaction surveys.
C) a paid form of marketing communication.
D) designed to remind consumers, while publicity is used to persuade consumers.
E) designed for very targeted audiences, while publicity reaches mass audiences.

162) In very simple words, advertising is really about:


A) improving brand image.
B) personal selling.
C) linking emotions with products.
D) getting consumers’ attention.
E) being creative.

163) Because advertising is the most visible form of marketing:


A) many people think of marketing and advertising as synonymous.
B) it is the most important part of a marketing mix.
C) everyone prefers to be in advertising.
D) marketing budgets always emphasize advertising over other forms of communication.
E) it is the largest source of employment opportunities for marketing graduates.

164) To get us to remember their ad and the product or brand in the ad, advertisers must first:
A) use persuasion.
B) offer incentives.
C) create effective PSAs.
D) get our attention.
E) vary between flighting and pulsing scheduling.

Version 1 41
165) Marta is working on an advertisement to promote consumer awareness of the danger of solar
radiation causing skin cancer. Marta’s first concern will be to:
A) get consumers’ attention.
B) enlist creative advertising designers.
C) make sure firms producing sunscreen lotions approve.
D) collect a petition in support of controls against global warming.
E) use public relations to buy advertising space.

166) Anthony is working on an advertising campaign to promote downtown businesses. He


knows the increasing number of advertising communication channels available and changes
in consumers’ media usage:
A) will force him to use PSAs.
B) increase consumers’ preference for high-pressure persuasive advertising.
C) make his job more difficult.
D) make it easier to select media.
E) make budget more important, and creativity less important.

167) After identifying the target audience for the university’s new advertising campaign, the
advertising team needs to decide whether the advertising objective is to ________, ________,
or ________ potential and/or existing students.
A) create; stimulate; ignore
B) beg; borrow; steal
C) pay; buy; entertain
D) inform; persuade; remind
E) push; pull; sell

168) Generally speaking, all advertising messages are designed to:


A) meet the needs of society.
B) inform, persuade, or remind customers.
C) comply with FCC rules combined with FTC antitrust regulations.
D) entertain or apprise.
E) match production scheduling with consumer demand.

Version 1 42
169) Informative advertising is used to:
A) prompt repurchase of a product.
B) create and build brand awareness.
C) trigger an emotional response.
D) gather information about consumers.
E) convince consumers to take action.

170) “Now available—the latest fall fashions” is an example of a(n) ________ advertising
message.
A) persuasive
B) reminder
C) socially responsible
D) informative
E) institutional

171) When a product has gained a certain level of brand awareness, firms use ________
advertising to motivate consumers to take action.
A) informative
B) persuasive
C) institutional
D) discussive
E) reminder

172) Which of the following is the BEST example of a persuasive advertising message?
A) “Buy now, pay later.”
B) “Doing business in Peoria since 1848.”
C) “This is good.”
D) “Now available—the latest fall fashions.”
E) “Serving the public since last Tuesday.”

Version 1 43
173) P&G’s Tide laundry detergent has been around since 1948 and is still a market leader.
P&G has used ________ advertising to reposition Tide several times over the product’s life,
trying to motivate new consumer segments to use the product.
A) informative
B) persuasive
C) social marketing
D) emotional
E) institutional

174) Persuasive advertising is often used when competition:


A) is nonexistent.
B) is cooperating.
C) is most intense.
D) is declining.
E) is ineffective.

175) Reminder advertising is primarily used to:


A) prompt repurchase of a product.
B) create and build brand awareness.
C) accelerate market acceptance.
D) gather information about consumers.
E) persuade consumers to change existing perceptions.

176) Which of the following is the best example of a reminder advertising message?
A) “Buy now, pay later.”
B) “Doing business in Peoria since 1848.”
C) “Buy one, get one free.”
D) “Now available—the latest fall fashions.”
E) “New and improved!”

Version 1 44
177) Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses
pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing
everyone well during the holiday season. This is an example of ________ advertising.
A) informative
B) persuasive
C) reminder
D) discussive
E) institutional

178) Campbell’s Soup Company ran a series of radio ads tied to local weather forecasts. Before
an impending storm the ads said, “Time to stock up on Campbell’s Soup.” During the
storm the ads said, “Stay home and stay warm with Campbell’s Soup.” The first ad was
________ advertising, while the second ad was ________ advertising.
A) informative; persuasive
B) persuasive; reminder
C) reminder; persuasive
D) discussive; informative
E) institutional; persuasive

179) Advertising slogans such as “Don’t text and drive” and “Buy flood insurance before it
is too late” are examples of ads designed to:
A) provide information.
B) remind consumers.
C) recruit employees.
D) persuade consumers to take action.
E) generate goodwill.

Version 1 45
180) The California Raisin Advisory Board used to run ads featuring “The California Raisins,”
a fictitious R&B musical group composed of dancing raisins that boogied to the song “I
Heard It Through the Grapevine.” The ads, which were hugely popular and which gave rise
to a line of raisin-themed merchandise, were designed to encourage raisin consumption. This
campaign was an example of:
A) product-focused advertising.
B) consumer-generated advertising.
C) public service announcements.
D) institutional advertising.
E) push strategies.

181) A ________ is an advertisement that focuses on public welfare issues.


A) product-focused advertisement
B) consumer-generated advertisement
C) public service announcement
D) reminder advertisement
E) push strategy

182) U.S First Lady Michelle Obama recorded an ad encouraging parents to teach their children
good nutrition habits to stem the increase in child obesity. This message is an example of:
A) product-focused advertising.
B) consumer-generated advertising.
C) a public service announcement.
D) reminder advertising.
E) a flighting campaign.

183) Because PSAs are a special class of advertising:


A) consumers to listen to them.
B) court approval before they are aired.
C) all advertisers to contribute to them.
D) broadcasters to devote a specific amount of free airtime to them.
E) that they use only the informative or reminder advertising appeals.

Version 1 46
184) An advertisement featuring a cartoon Smokey the Bear saying “Only you can prevent
wildfires” is an example of a successful:
A) push-and-pull advertisement.
B) puffery campaign.
C) sales promotion.
D) product-focused advertisement.
E) public service announcement.

185) Regardless of the objective of an advertising campaign, each campaign’s objectives must
be:
A) sincere and emotional.
B) consistent with those of the available media.
C) either informative or persuasive but not both.
D) specific and measurable.
E) designed for use in both a pull and a push strategy.

186) Public service advertising (PSA) represents:


A) a form of sales promotion.
B) an appeal to personal desires.
C) tax benefits for businesses.
D) attention to the target audience.
E) a form of niche media.

187) When developing an advertising message, the message should focus on:
A) the producer.
B) the advertising environment.
C) solving problems for consumers.
D) creating investment opportunities.
E) niche media balance.

Version 1 47
188) The advertising message “People are not looking for quarter-inch drill bits; they are
looking for quarter-inch holes” suggests that advertising messages need to:
A) emphasize technology.
B) focus on quality.
C) inform consumers about opportunities.
D) focus on solving problems.
E) engage in mild puffery.

189) Walmart’s “Everyday low prices” selling proposition is effective primarily because it is:
A) unique to the industry.
B) meaningful to the consumer.
C) variable over time.
D) a one-time message.
E) generally unsustainable.

190) In Canada, the regulation of advertising involves a complex mix of laws and informal
restrictions designed to:
A) protect consumers from deceptive practices.
B) stimulate domestic demand.
C) reduce international competition.
D) promote social marketing.
E) institutionalize pull strategies.

191) Canadian-based global marketers have often found that:


A) anything goes when advertising outside Canada.
B) European advertising regulations are more restrictive than those in Canada.
C) children in other countries are less influenced by advertising.
D) self-regulatory groups are especially demanding of Canadian. advertisers.
E) outside Canada, standards are subject to UN approval.

Version 1 48
192) Which of the following is the BEST example of puffery?
A) “Take two and call us in the morning.”
B) “Happy hour every Friday.”
C) “You have tried the rest, now try the best.”
D) “All natural ingredients.”
E) “Northwestern, the quiet company.”

193) Unlike advertising, public relations:


A) supports promotional efforts by generating free media attention and goodwill.
B) accounts for a greater increase in marketing spending.
C) converts mass media advertising into direct marketing.
D) is considered a human resource function.
E) should not be considered part of the marketing area.

194) ________ are special incentives or excitement-building programs that encourage consumers
to purchase a particular product, typically used in conjunction with advertising or personal
selling programs.
A) B2B programs
B) Trade incentives
C) Sales promotions
D) Push programs
E) Targeted leader items

195) Sarita goes through the newspaper looking for coupons to help reduce her living expenses.
Her roommate Pilar doesn’t read newspapers, let alone look through them for coupons. But
Pilar filled out a form from inside a cereal box entering her in a drawing for free exercise
equipment. What kind of sales promotion reached Pilar?
A) loyalty program
B) contest
C) deal
D) premium
E) sweepstakes

Version 1 49
196) “Buy one, get one free” is a ________ sales promotion.
A) deal
B) coupon
C) sample
D) sweepstake
E) rebate

197) Elias was struggling selling his golf photography outside a PGA event. When he offered a T-
shirt with a golf photograph on it with any framed golf photo, sales picked up. Elias
discovered the value of sales promotions—specifically ________—in encouraging customers
to buy.
A) deals
B) premiums
C) samples
D) sweepstakes
E) rebates

198) Firms are willing to offer generous rebates because:


A) the retailer and manufacturer always split the cost.
B) rebates increase sales, but firms may not have to pay off all the rebates offered.
C) they are easier for the consumer to use than are coupons.
D) rebates are the only type of sales promotion proven to impact sales.
E) they tend to generate repeat customers.

199) Actor Sissy Spacek once objected to a series of movie scenes that included her smoking a
certain brand of cigarettes. She was probably objecting to a ________ arrangement the film
company had made with an advertiser.
A) promotional deal
B) mass media buy
C) product placement
D) loyalty program
E) sampling

Version 1 50
200) Special in-store displays for magazines and chewing gum are most likely to be effective if
located:
A) near the entrance to the store.
B) near the restrooms.
C) along the aisle or wall to the far right of the customer as he or she enters the store.
D) near the checkout counter.
E) in the window at the front of the store.

201) Starbucks provides tastes of new products to customers. This is called:


A) cobranding.
B) sampling.
C) a rebate.
D) multitarget promoting.
E) convenience promoting.

202) Traditionally, marketers have seen the role of ________ as generating short-term results,
whereas the goal of ________ was to lead to long-term results.
A) public relations; institutional advertising
B) advertising; personal selling
C) sales promotion; advertising
D) advertising; public relations
E) corporate blogs; public relations

203) Traditionally, the role of sales promotion has been to ________, whereas the goal of
advertising was to ________.
A) increase product exposure; decrease product exposure
B) generate increased revenues; generate better marketing metrics
C) generate long-term results; generate short-term results
D) generate better marketing metrics; generate increased revenues
E) generate short-term results; generate long-term results

Version 1 51
204) A form of sales promotion that offers prizes based on a chance drawing of entrants’ names,
________ do not require the entrant to complete a task other than buying a ticket or filling
out a form.
A) contests
B) deals
C) sweepstakes
D) premiums
E) loyalty programs

205) Beverage companies often pay movie producers to have their products used and shown in
movies. This is an example of product:
A) placement.
B) loyalty.
C) deals.
D) sampling.
E) premiums.

206) ________ are specifically designed to retain customers by offering premiums or other
incentives to customers who make multiple purchases over time.
A) Coupons
B) Rebates
C) Contests
D) Sweepstakes
E) Loyalty programs

207) Your best friend is considering a career in sales. What benefits of a sales career would you
explain to your friend?

Version 1 52
208) Warren is debating between spending the money needed to hire a sales force and using
advertising and promotion to sell his products. What benefits of hiring a sales force will
Warren weigh in his decision?

209) How can sales representatives save time for customers?

210) What is relationship selling?

211) Gerard is a sales rep for a line of golf equipment. He has been trying to get his sales manager
to allow him to rent a booth at the upcoming PGA (Professional Golfers’ Association)
Show held every February in San Diego. Gerard is putting together a list of the benefits of
displaying his company’s products at the show. What benefits should his list include?

Version 1 53
212) Tatiana sells office networking systems. She is putting together a sales presentation for a
new customer. What advice would you give Tatiana about making her sales presentation?

213) Alexis has trouble closing sales with new customers but not with existing customers. What
advice would you give Alexis?

214) Renard, a sales manager for a Best Buy electronics store, is putting together a training
seminar for his sales force. He wants to use the five dimensions of service quality to
emphasize the importance of follow-up in the selling process. Provide an example of each of
the five service quality dimensions that Renard could use in training his Best Buy sales staff.

215) For a car salesperson, what are good ways of generating leads?

Version 1 54
216) Yusef has just finished his sales presentation. He knows that half the battle is asking
questions. What is the other half?

217) Jarel, an architect, made his presentation to the potential customer and handled objections.
What does Jarel need to do next, and why is this stage so stressful?

218) After installing a new HVAC system, what should Foster’s Heating & Air Conditioning do,
according to the personal selling process?

219) On weekends, Rudy often finds himself thinking about his customers and their problems.
Sometimes Rudy will figure out a potential solution and email or call his customer. What
personal trait does Rudy have that is important to sales success?

220) Why do many people think advertising and marketing are synonymous?

Version 1 55
221) Marketers know perception is a highly selective process. What does this mean for
advertisers?

222) Create three one-sentence advertising messages for the nearest fast-food restaurant: one that
is informative, one that is persuasive, and one that is a reminder ad.

223) What are PSAs? Why do television and radio stations run them?

224) Mei-Lan opened a new financial services office about two years ago. Now she is established
and known in her local market. How will her advertising message change?

225) What is puffery? Why is puffery not illegal in Canada? Give an example of an advertising
message containing puffery.

Version 1 56
226) Many small “main street” retailers find advertising either too expensive or ineffective. In
this situation, these business owners turn to sales promotion to complement or augment their
advertising efforts. Describe three kinds of sales promotion a small, main street retailer might
use, including the advantages and disadvantages of each sales promotion method.

227) Create a sales promotion to promote your university bookstore.

228) Describe an example of a product placement you have recently seen, and if it was effective.

229) Describe the three forms of product advertisements. What are their objectives?

230) Describe the objectives of institutional advertising. List and briefly define the four forms of
institutional advertising.

Version 1 57
231) What is the difference between a coupon and a deal?

232) What is cooperative advertising?

233) With respect to objectives, advantages, and disadvantages, what are the differences between
premiums and contests?

234) With respect to objectives, advantages, and disadvantages, what are the differences between
loyalty programs and rebates?

235) With respect to objectives, advantages, and disadvantages, what are the differences between
product placements and point-of-purchase displays?

Version 1 58
236) With respect to objectives, advantages, and disadvantages, what are the differences between
contests and sweepstakes?

237) What are the differences between merchandise allowances, case allowances, and finance
allowances?

238) Define personal selling.

239) What are the five stages of the personal selling process? What is the objective of each stage?

240) What occurs during the closing stage of the selling process?

Version 1 59
241) Which of the following components is NOT part of the AIDA model?
A) Attention
B) Interest
C) Action
D) Desire
E) Acceptance

242) Which of the following statements is NOT correct regarding the AIDA model?
A) The most common model to move consumers step-wise through a series of mental
stages is the AIDA model.
B) At each stage, the consumer makes judgments about whether to take the next step in
the process.
C) Customers actually have three types of responses, so the AIDA model is also known
as the "think, feel, do" model.
D) In making a purchase decision, consumers go through each of the AIDA steps to
some degree.
E) In making a purchase decision, consumers always follow the AIDA in order.

243) Which of the following statements is TRUE about the AIDA model?
A) It is a common model used by marketers when there is a delayed response to a
marketing communication campaign.
B) It is a series of approaches that finalize a sales process by retailers.
C) It is used primarily in determining the best trade channel sales promotion technique.
D) It is a series of mental stages through which consumers move.
E) It refers to the various types of media available to communicate a marketing message.

244) Which of the following occurs when consumers recognize the brand when its name is
presented to them?
A) Lagged effect
B) Puffery
C) Aided recall
D) Cold call
E) Top-of-mind awareness

Version 1 60
245) Which of the following refers to a situation when a brand has a prominent place in people's
memories that triggers a response without them having to put any thought into it?
A) Lagged effect
B) Puffery
C) Cold call
D) Aided recall
E) Top-of-mind awareness

246) A customer refers to Windows, a product from Microsoft, when asked about an operating
system. This sort of customer association primarily relates to the:
A) interest stage of the AIDA model.
B) action stage of the AIDA model.
C) desire stage of the AIDA model.
D) decision stage of the AIDA model.
E) attention stage of the AIDA model.

247) Once consumers are aware that a company or product exists, communication must work to:
A) define the objectives of marketing communication.
B) match communication with competitors.
C) create top-of-mind awareness.
D) increase their interest level.
E) instigate aided recall in their minds.

248) The ultimate goal of any marketing communication is to:


A) generate desire in customers' minds.
B) drive the receiver to action.
C) create awareness about the company.
D) create awareness about a product.
E) increase customers' interest level in a product.

Version 1 61
249) Whenever Sam thinks about smartphones, Samsung comes to mind. What level of awareness
is it an example of?
A) Aided recall
B) Attention
C) Top of mind awareness
D) Interest
E) Subconscious

250) Lagged effect refers to:


A) the process of generating awareness in a product's target market.
B) a delayed response to a marketing communication campaign.
C) a flawed marketing message sent to a product's target market.
D) a marketing message sent to an untargeted customer segment.
E) the process of generating interest about a product or company.

251) What is the ultimate goal of any marketing communication?


A) Customer purchase intention
B) Customer desire
C) Customer interest
D) Customer attention
E) Customer action

252) Sometimes consumers don’t act immediately after receiving a marketing communication
because of ______- a delayed response to a marketing communication campaign.
A) the lagged effect
B) puffery
C) the cold call
D) aided recall
E) top-of-mind awareness

Version 1 62
253) Which of the following statements is NOT true regarding advertising?
A) Advertising is not free; someone has paid—with money, trade, or other means—to
get the message shown.
B) Advertising must be carried by some medium: television, radio, print, the Internet.
C) Word-of-mouth activities are considered advertising.
D) Legally, the source of the message must be known or knowable.
E) Advertising represents a persuasive form of communication, designed to get the
consumer to take some action.

254) Identify from the following the type of advertising that primarily communicates to create
and build brand awareness, with the ultimate goal of moving the consumer through the
buying cycle to a purchase.
A) Informative
B) Persuasive
C) Influential
D) Reminder
E) Convincing

255) Retailers often use ______ advertising to tell their customers about an upcoming sales event
or the arrival of new merchandise.
A) informative
B) persuasive
C) influential
D) reminder
E) convincing

Version 1 63
256) Finkrola Appliances Corp. manufactures and markets home appliances. The firm decides to
market vacuum cleaners in a region where the product category for such products is absent.
Before the product launch, Finkrola uses advertisements that are mainly intended to create
awareness about the product and the company. Identify the type of advertising that was most
likely used by Finkrola Appliances Corp. in this scenario.
A) Influential
B) Persuasive
C) Reminder
D) Convincing
E) Informative

257) Which of the following types of advertising do firms use to motivate consumers to take
action when a product has gained a certain level of brand awareness?
A) Informative
B) Instructive
C) Persuasive
D) Interpretive
E) Educational

258) This form of advertising generally occurs in the growth and early maturity stages of the PLC,
when competition is most intense, and attempts to accelerate the market's acceptance of the
product.
A) Informative
B) Instructive
C) Persuasive
D) Interpretive
E) Educational

Version 1 64
259) Charles Associates Inc. uses mass media advertising to communicate its festival products
and to urge customers to buy the products during the festival season. It advertises after
generating enough awareness about its products and the various schemes associated with
them. Which of the following types of advertising does Charles Associates Inc. use?
A) Informative
B) Reminder
C) Persuasive
D) Instructive
E) Educational

260) Which of the following types of advertising is used to prompt repurchases, especially for
products that have gained market acceptance and are mostly in the maturity stage of their life
cycle?
A) Informative
B) Persuasive
C) Influential
D) Reminder
E) Interpretive

261) Riders Corp. is an electric scooter brand in the country of Cambria. The brand has been
growing at a high rate for many years. However, the brand's sales growth has declined in the
current financial year. Riders Corp. decides to use mass advertising to attract customers to its
brand again. In this scenario, which of the following types of advertising would best serve
Riders Corp.'s purpose?
A) Interpretive
B) Influential
C) Reminder
D) Persuasive
E) Informative

Version 1 65
262) Which of the following types of advertisements is used to inform, persuade, or remind
consumers about a specific good or service?
A) Public service
B) Operational
C) Institutional
D) Societal
E) Product-focused

263) WellnessCare Inc. is a large manufacturer of consumer products. The company owns more
than 120 brands, and its business is stretched over 16 countries. However, most of
WellnessCare's advertisements promote specific brands rather than the company itself. What
are such advertisements called?
A) Product-focused advertisements
B) Operational advertisements
C) Societal advertisements
D) Institutional advertisements
E) Public service advertisements

264) Which of the following is a reason for a company to choose product-focused advertisements
over other types of advertisements?
A) Reminding consumers about procedural issues
B) Persuading customers to buy products soon
C) Creating awareness about the company
D) Reminding consumers about a specific product
E) Creating product awareness for public welfare

265) Which of the following types of advertisements is used to inform, persuade, and remind
consumers about issues related to places, politics, an industry, or a particular corporation?
A) Public service advertisements
B) Operational advertisements
C) Institutional advertisements
D) Societal advertisements
E) Product-focused advertisements

Version 1 66
266) Manorek Inc. is a leading media company in the country of Lucidia. It is a reputed brand and
is considered to be a trusted source of information by Lucidians. The company plans to enter
another continent and wants to build the same kind of reputation in these markets. Manorek
Inc. advertises to familiarize these new customers with the company and its reputation in
Lucidia. What type of advertising would serve this purpose?
A) Product-focused advertising
B) Societal advertising
C) Operational advertising
D) Institutional advertising
E) Public service advertising

267) The country of Devenopolis uses mass media advertisements to promote its tourist places,
educational institutions, and industrial corporations in other countries. Devenopolis uses
_____ advertising.
A) public service
B) institutional
C) societal
D) operational
E) product-focused

268) Which of the following is an example of an institutional advertisement?


A) An advertisement that promotes a brand of soft drink
B) An advertisement that promotes the haircuts given in a hair salon
C) An advertisement that promotes a company's goodwill
D) An advertisement that promotes a home appliance brand
E) An advertisement that promotes an organic product

269) Inclusion of a product in nontraditional situations, such as in a scene in a movie or TV


program. This form of advertising is known as:
A) public service
B) institutional
C) societal
D) operational
E) product placement

Version 1 67
270) Hershey's Reese's Pieces were highly visible in the movie ET. To the point where the candy
actually became part of the storyline. This action is known as:
A) a public service announcement
B) institutional advertising
C) societal advertising
D) operational advertising
E) product placement

271) The Slivereen Charity is a charitable organization working for the welfare of people in
underdeveloped countries. The firm uses mass media advertisements in developed countries
to generate funds for their initiatives in the underdeveloped countries. These advertisements
are best categorized as:
A) institutional advertisements.
B) operational advertisements.
C) public service announcements.
D) corporate announcements.
E) product-focused advertisements.

272) An organization decides to launch a social marketing program. Which of the following is
most likely to be the objective of this program?
A) Analyzing the productivity levels of the organization
B) Increasing the awareness about a new product offering
C) Applying marketing principles to social issues
D) Increasing the awareness about a paid service
E) Reminding consumers about its most profitable product

273) Advertisements that focus on public welfare and are generally sponsored by nonprofit
institutions, civic groups, religious organizations, trade associations, or political groups can
be best categorized as:
A) public service announcements.
B) operational advertisements.
C) institutional advertisements.
D) corporate announcements.
E) product-focused advertisements.

Version 1 68
274) Which of the following terms can be most accurately defined as the application of marketing
principles to a public issue to bring about attitudinal and behavioural change among the
general public or a specific population segment?
A) Institutional announcements
B) Operational marketing
C) Social marketing
D) Process marketing
E) Product-focused announcements

275) A company decides to market its products by featuring them in a reality television show.
The celebrities in the show sometimes use the products, which in turn promotes the products.
Which of the following advertisement techniques has the company used?
A) Contest
B) Product placement
C) POP (point-of-purchase) display
D) Loyalty program
E) Premium

276) Which of the following refers to the inclusion of a product in nontraditional situations, such
as in a scene in a movie or TV program?
A) Sweepstake
B) Point-of-purchase display
C) Deal
D) Contest
E) Product placement

277) Change Your Attitude is a reality television show in which participants from varying cultural
backgrounds share a house. Marketers advertise in the show by letting the participants use
their products and also by displaying products in the common areas of the house. This
promotional strategy is an example of a:
A) product placement.
B) contest.
C) deal.
D) sweepstake.
E) pop display.

Version 1 69
278) Informative advertising:
A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is to inform, persuade, and remind consumers about issues related to places, politics,
an industry, or a particular corporation.

279) Persuasive advertising:


A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is to inform, persuade, and remind consumers about issues related to places, politics,
an industry, or a particular corporation.

280) Reminder advertising:


A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is to inform, persuade, and remind consumers about issues related to places, politics,
an industry, or a particular corporation.

Version 1 70
281) Product-focused advertisements:
A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is to inform, persuade, and remind consumers about issues related to places, politics,
an industry, or a particular corporation.

282) Institutional advertisements:


A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) inform, persuade, and remind consumers about issues related to places, politics, an
industry, or a particular corporation.

283) Product placement:


A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is the inclusion of a product in non-traditional situations.

Version 1 71
284) Public service announcements:
A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) focuses on public welfare and generally is sponsored by non-profit institutions, civic
groups, religious organizations, trade associations, or political groups.

285) Social marketing:


A) communicates to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying cycle to a purchase.
B) communication used to motivate consumers to take action.
C) is communication used to remind consumers of a product or to prompt repurchases,
especially for products that have gained market acceptance and are in the maturity
stage of their life cycle.
D) are used to inform, persuade, or remind consumers about a specific product or service.
E) is the application of marketing principles to a social issue to bring about attitudinal
and behavioural change among the general public or a specific population segment.

286) Which of the following statements is FALSE regarding regulatory and ethical issues related
to advertising in Canada?
A) Although cannabis has been legalized in Canada, there are strict regulations around
the way companies market their products, including not appealing to underage
consumers.
B) The Cannabis Act prohibits advertising on TV or radio, using emotional associations,
linking products lifestyles that are glamorous or exciting.
C) The Cannabis Act prohibits advertising on TV or radio, using testimonials,
endorsements, linking products to sports marketing.
D) Companies are allowed to advertise in places where only people over the age of 16
are permitted and in magazines where adults account for more than 85 percent of their
readership.
E) One of the primary federal agencies that regulate advertising activities is the
Competition Bureau.

Version 1 72
287) Which of the following generally enforces federal laws that ensure businesses in Canada
operate in a fair and equitable manner?
A) Canadian Telecommunications Commission
B) Health Canada
C) Advertising Standards Canada
D) Canada's Competition Bureau
E) Canadian Radio-television Commission

288) Canada's Competition Bureau enforces laws relating to:


A) misleading advertising and deceptive marketing practices.
B) restrictions on broadcasting material.
C) labelling of food products pertaining to nutrition.
D) gender portrayal and racism in Canada.
E) standards and requirements for the safety and sanitation of products.

289) Which of the following is a legislation that establishes the standards and requirements for
the safety and sanitation of products?
A) Canadian Radio and Television Act
B) Competition Act
C) Canadian Agricultural Act
D) Health Canada Food and Drug Act
E) Advertising Standards of Canada Act

290) Which of the following agency/legislation regulates food, drugs, cosmetics, and medical
devices?
A) Canadian Telecommunications Commission
B) Health Canada
C) Advertising Standards Canada
D) Canada's Competition Bureau
E) Canadian Radio-television Commission

Version 1 73
291) Which of the following agency/legislation monitors voluntary advertising industry codes?
A) Canadian Telecommunications Commission
B) Health Canada
C) Advertising Standards Canada
D) Canada's Competition Bureau
E) Canadian Radio-television Commission

292) Which of the following agency/legislation enforces federal laws that ensure businesses in
Canada operate in a fair and equitable manner?
A) Canadian Telecommunications Commission
B) Health Canada
C) Advertising Standards Canada
D) Canada's Competition Bureau
E) Canadian Radio-television Commission

293) Feedz Inc. is a leading manufacturer of edible plants and processed items. Robert, a retail
shop owner, identifies that the nutrition labels of the company's products are inaccurate and
incomplete. Which of the following is a law that would be most helpful to Robert for suing
Feedz Inc. with regard to public welfare?
A) Advertising Standards of Canada Act
B) Canadian Agricultural Act
C) Competition Act
D) Health Canada Food and Drug Act
E) Canadian Radio and Television Act

294) A representation in an advertisement that is likely to mislead consumers acting reasonably


under the circumstance.
A) Puffery
B) Deceptive advertising
C) Scamming
D) Markup
E) Benchmarking

Version 1 74
295) The Competition Bureau accused Moose Knuckles, which makes high-end winter jackets,
with illegal marketing practices regarding its "Made in Canada" claims when it was
discovered that Moose Knuckles' coats were primarily made in Vietnam and other Asian
countries. This is an example of:
A) puffery
B) deceptive advertising
C) scamming
D) markup
E) benchmarking

296) Which of the following terms can be BEST defined as the legal exaggeration of praise,
stopping just short of deception, lavished on a product?
A) Puffery
B) Fraud
C) Scamming
D) Markup
E) Benchmarking

297) Manikola Inc. is a beverage company. It uses humour in most of its advertisements in order
to appeal its customers. One of these funny advertisements showed that an elderly person
lives for 250 years after consuming a health drink manufactured by Manikola Inc. This is an
example of:
A) puffery.
B) fraud.
C) cannibalization.
D) deception.
E) benchmarking.

298) Which of the following protects messages with no promotional or selling intent?
A) Health Canada Food and Drug Act
B) Charter of Rights and Freedoms
C) Veteran's Bill of Rights
D) Canadian Radio-television and Telecommunications Commission
E) Competition Act

Version 1 75
299) Which of the following statements is TRUE about the regulatory and ethical issues in
advertising?
A) Puffery is considered deception in Canada.
B) In the European Union, consumers are viewed as rational and capable of evaluating
advertising claims.
C) None of the state or European regulations is more restrictive than existing federal or
self-regulatory requirements.
D) The Consumer Packaging and Labelling Act requires all prepackaged products to
bear the quantity in metric and imperial for weight, volume, or measures.
E) Diet-related health claims for food products, related to risk reduction of heart disease,
cancer, osteoporosis, and high blood pressure, have been used for many years in
Canada.

300) Which of the following primarily requires manufacturers and distributors to disclose full
information about their products?
A) Charter of Rights and Freedoms
B) Consumer Packaging and Labelling Act
C) Competition Act
D) Advertising Standards Canada
E) Quebec Consumer Protection Act

301) Which of the following statements is TRUE about puffery?


A) It is similar to cold calls but does not involve personal meetings.
B) It is an illegal exaggeration of praise about a product.
C) It is protected by the Charter of Rights and Freedoms.
D) It is considered as deception in the European Union.
E) It is a form of sweepstakes that requires an entrant to complete a task by filling out a
form.

Version 1 76
302) Which of the following statements is INCORRECT regarding sales promotion?
A) Sales promotions are special incentives or excitement-building programs that
encourage consumers to purchase a particular product or service.
B) Sales promotions are typically used in conjunction with other advertising or personal
selling programs.
C) The value in sales promotions is in closing the deal.
D) Many sales promotions, such as free samples or point-of-purchase (POP) displays,
attempt to build long-term sales,
E) Some sales promotion tools can be used with either a push or pull strategy.

303) Which of the following is a DISADVANTAGE of deals as a sales promotion tool?


A) It discourages brand trial.
B) It increases consumer risk.
C) It may reduce perception of value.
D) It fails to retaliate against competitive action.
E) It increases the cost of the good for the consumer.

304) The objective of this consumer sales promotion is to stimulate demand.


A) Coupons
B) Deals
C) Premiums
D) Contests
E) Sweepstakes

305) The objective of this consumer sales promotion is to encourage trial.


A) Coupons
B) Deals
C) Premiums
D) Contests
E) Sweepstakes

Version 1 77
306) The objective of this consumer sales promotion is to build goodwill.
A) Coupons
B) Deals
C) Premiums
D) Contests
E) Sweepstakes

307) The objective of this consumer sales promotion is to increase consumer involvement.
A) Coupons
B) Deals
C) Premiums
D) Contests
E) Sweepstakes

308) The objective of this sales promotion is to offer prizes based on a chance drawing of entrants’
names.
A) Coupons
B) Deals
C) Premiums
D) Contests
E) Sweepstakes

309) The objective of this consumer sales promotion is to encourage trial.


A) Coupons
B) Loyalty programs
C) Premiums
D) Samples
E) Sweepstakes

Version 1 78
310) The objective of this consumer sales promotion is to encourage repurchase.
A) Coupons
B) Deals
C) Loyalty programs
D) Samples
E) Sweepstakes

311) The objective of this consumer sales promotion is to stimulate demand.


A) Rebates
B) POP Displays
C) Loyalty programs
D) Samples
E) Sweepstakes

312) The objective of this consumer sales promotion is to increase brand trial.
A) Rebates
B) POP Displays
C) Loyalty programs
D) Samples
E) Sweepstakes

313) Which of the following consumer sales promotion tools offers a discount on the price of
specific items when they are purchased?
A) Premium
B) Lottery
C) Sweepstake
D) Contest
E) Coupon

Version 1 79
314) Which of the following statements is FALSE regarding coupons and coupon usage?
A) Coupons are commonly used in supermarkets.
B) Some retailers accept coupons from competitors.
C) Coupons carried in newspapers, magazines, have high redemption rates,
approximately 10-20 percent.
D) Coupons download over the internet experience a redemption rate of over 50-percent.
E) Some coupons, whether printed from the Internet or sent to mobile phones, also
contain information about the customer who uses them.

315) A type of short-term price reduction, such as a featured price, can be best categorized as a:
A) premium.
B) deal.
C) rebate.
D) contest.
E) coupon.

316) Which of the following statements is FALSE regarding deals?


A) Deals can also alter perceptions of value—a short-term price reduction may signal a
different price/quality relationship than would be ideal from the manufacturer's
perspective.
B) A deal refers generally to a type of long-term price reduction that can take several
forms.
C) One form of a deal involves a special financing arrangement, such as reduced
percentage interest rates or extended repayment terms.
D) Deals encourage trial because they lower the risk for consumers by reducing the cost
of the good.
E) A "buy one, get one free" offer is considered a deal.

317) A ______ is a merchandise display located at the checkout counter in a grocery store.
A) premium
B) point-of-purchase display
C) rebate
D) contest
E) coupon

Version 1 80
318) A retailer decides to use POP (point-of-purchase) displays to promote one of its products.
Which of the following is most likely to be the objective of this initiative?
A) Encouraging repurchase
B) Building goodwill
C) Increasing brand trial
D) Providing in-home support
E) Guaranteeing complete sale

319) All of the following are correct about POP displays EXCEPT:
A) They increase brand trial
B) They provide in-store support
C) They can be costly to the firm
D) They increase perception of value
E) It is difficult to get a good location in the store

320) Which of the following terms can be best defined as an item offered for free or at a bargain
price to reward some type of behaviour, such as buying, sampling, or testing?
A) A premium
B) A deal
C) A sample
D) A coupon
E) A contest

321) All of the following are correct about Premiums EXCEPT:


A) premiums build goodwill among consumers.
B) premiums can be included in the product packaging, such as the toys inside cereal
boxes.
C) premiums can be very ineffective if they are consistent with the brand's message and
image and highly desirable to the target market.
D) an example of a premiums can include the free perfume that victoria's secret offers
via mail outs to customers.
E) in order to be effective premiums must be highly desirable to the target market.

Version 1 81
322) Bakes is a leading biscuit brand. The brand is marketed by Feast Foods. The company's
major target market is children younger than 15 years of age. To have consumers associate
more value with its products, the company includes small plastic toys in the biscuit packages.
This promotional technique is an example of a:
A) coupon.
B) deal.
C) sample.
D) contest.
E) premium.

323) Which of the following refers to a brand-sponsored competition that requires some form of
skill or effort?
A) A premium
B) A sample
C) A deal
D) A contest
E) A loyalty program

324) Rhomus Inc. is a Canadian entertainment company that produces and markets television
programs. To generate customer interest for a new program that it is planning to launch,
Rhomus invites entries from its target customers through mass media to send in creative
names for the TV program. The firm announces that it will provide a monetary reward for the
name that gets selected. This is an example of a:
A) sampling program.
B) sweepstake.
C) deal.
D) contest.
E) loyalty program.

325) Sweepstakes can be most accurately defined as a form of sales promotion that offers:
A) incentives to customers who make multiple purchases over time.
B) potential customers the opportunity to try a product or service.
C) a special type of short-term price reduction to customers.
D) prizes based on a chance drawing of entrants' names.
E) certain items for free or at a bargain price to reward some type of behaviour.

Version 1 82
326) Which of the following is a key difference between sweepstakes and contests?
A) Sweepstakes require customers to use their skills.
B) Contests involve distributing samples of a product.
C) Sweepstakes do not involve customers.
D) Contests can be advertised through mass media.
E) Sweepstakes winners are determined by a random draw.

327) A form of sales promotion that offers prizes based on a chance drawing of entrants' names is
known as a:
A) sampling program.
B) sweepstake.
C) deal.
D) contest.
E) loyalty program.

328) Which of the following offers potential customers the opportunity to try a product or service
before they make a buying decision?
A) A contest
B) A coupon
C) A sample
D) A deal
E) A sweepstake

329) Beautify Inc. is a firm that offers cosmetics and beauty products. The company introduces a
new type of wet facial tissue paper. To familiarize target consumers with the product,
Beautify Inc. offers the product for free with the company's other offerings. Such an offering
is an example of a:
A) coupon.
B) sample.
C) contest.
D) discount.
E) sweepstake.

Version 1 83
330) Which of the following are specifically designed to retain customers by offering premiums
or other incentives to customers that make multiple purchases over time?
A) Product placements
B) Rebates
C) Contests
D) Sweepstakes
E) Loyalty programs

331) Shopper Corporation gives membership cards to customers that can be used to earn value
points every time they shop at a Shopper outlet. This membership card allows its customers
to make multiple purchases over time. The membership card is an example of a:
A) loyalty program.
B) sweepstake.
C) markup.
D) contest.
E) rebate offer.

332) The famous Tim Hortons "Roll Up the Rim" event is an example of:
A) a loyalty program
B) a deal
C) a premium
D) a contest
E) a sweepstake

333) Treats Corp., a company that markets packaged and processed foods, introduces a new
flavour of microwave popcorn. To promote customer trials of the product, Treats Corp.
exhibits the product near the checkout counters in many retail outlets. This strategy is an
example of a:
A) sales contest.
B) loyalty program.
C) special deal.
D) point-of-purchase display.
E) marketing contest.

Version 1 84
334) Which of the following is a merchandise presentation typically placed at a store's checkout
counter?
A) A POP display
B) A sales contest
C) A special deal
D) A marketing contest
E) A loyalty program

335) A particular type of price reduction in which a portion of the purchase price is returned by
the seller to the buyer is referred to as a:
A) sweepstake.
B) rebate.
C) premium.
D) contest.
E) loyalty program.

336) Which of the following is a DISADVANTAGE of using samples as a consumer sales


promotion tool?
A) They require high creativity.
B) They incur high cost to a firm.
C) They discourage trial.
D) They reduce direct involvement of consumers.
E) They result in a reduction of sales.

337) Which of the following is a feature of POP (point-of-purchase) displays?


A) They reduce brand trial.
B) They encourage higher consumption.
C) They provide in-store support.
D) They are effective as they are usually easy to get a good location in the stores.
E) They minimize brand switching among existing consumers.

Version 1 85
338) Which of the following statements is TRUE of coupons?
A) They usually reduce the demand for products.
B) They are rarely used in supermarkets.
C) They provide discounts on items even before they are purchased.
D) They allow for direct tracing of sales.
E) They have high redemption rates.

339) Tuff Textiles Inc. is a leading apparel manufacturer. To increase the demand for its products,
the company advertises that it would reward its customers with a 5 percent discount in
exchange for purchase receipts from its company. This scheme by Tuff Textiles Inc. is an
example of a:
A) sweepstake.
B) rebate.
C) sample.
D) contest.
E) premium.

340) Coupons:
A) stimulate demand.
B) encourage trial.
C) build goodwill.
D) increase consumer involvement.
E) encourage higher consumption.

341) Deals:
A) stimulate demand.
B) encourage trial.
C) build goodwill.
D) increase consumer involvement.
E) encourage higher consumption.

Version 1 86
342) Premiums:
A) stimulate demand.
B) encourage trial.
C) build goodwill.
D) increase consumer involvement.
E) encourage higher consumption.

343) Contests:
A) stimulate demand.
B) encourage trial.
C) build goodwill.
D) increase consumer involvement.
E) encourage higher consumption.

344) Sweepstakes:
A) stimulate demand.
B) encourage trial.
C) build goodwill.
D) increase consumer involvement.
E) encourage higher consumption.

345) Samples:
A) encourage trial.
B) encourage repurchase.
C) increase brand trial.
D) stimulate demand.
E) encourage higher consumption.

346) Loyalty programs:


A) encourage trial.
B) encourage repurchase.
C) increase brand trial.
D) stimulate demand.
E) encourage higher consumption.

Version 1 87
347) POP displays:
A) encourage trial.
B) encourage repurchase.
C) increase brand trial.
D) stimulate demand.
E) encourage higher consumption.

348) Rebates:
A) encourage trial.
B) encourage repurchase.
C) increase brand trial.
D) stimulate demand.
E) encourage higher consumption.

349) Discounts and allowances are effective incentives used primarily to:
A) maintain or increase inventory levels in the distribution channel.
B) remind customers of an existing brand or company.
C) promote consumer products to consumers.
D) provide special-purpose training to employees.
E) reduce the supply of certain items in the distribution network.

350) Which of the following is an example of a trade channel sales promotion?


A) Customer loyalty program
B) Co-operative advertising
C) Product placement
D) Promotional contest
E) Point-of-purchase display

Version 1 88
351) Which of the following statements is FALSE of trade channel sales promotions?
A) Trade channel promotions help convince retailers to give it eye-level shelf space.
B) Trade channel promotions help convince wholesalers to stock a new brand.
C) Trade channel promotions help convince retailers to promote it in their flyers.
D) Many types of consumer sales promotions can be used for channel members,
including discounts and allowances and cooperative advertising.
E) Sales force training is used only for B2B sales promotions.

352) ______ are (is) effective incentives used to maintain or increase inventory levels in the
distribution channel.
A) Discount and allowances
B) Cooperative advertising
C) Sales force training
D) Distinctive advertising
E) Collaborative advertising

353) _____ gives a company's sales force more in-depth product knowledge, which enhances
their confidence in the product and increases the likelihood of future sales.
A) Discount and allowances
B) Cooperative advertising
C) Sales force training
D) Distinctive advertising
E) Collaborative advertising

354) ______ helps to compensate trade channel members for money they spend promoting
products and encourages them to feature products more often.
A) Discount and allowances
B) Cooperative advertising
C) Sales force training
D) Distinctive advertising
E) Collaborative advertising

Version 1 89
355) This retail store concepts is a temporary storefronts that exist for only a limited time and
generally focus on a new product or a limited group of products by a retailers, manufacturer,
or service provider.
A) Franchise
B) Pop-up
C) Pop-down
D) Mom and Pop store
E) Grandpa Store

356) Discounts and allowances:


A) are effective incentives used to maintain or increase inventory levels in the
distribution channel.
B) helps to compensate trade channel members for money they spend promoting
products and encourages them to feature products more often.
C) gives a company’s sales force more in-depth product knowledge, which enhances
their confidence in the product and increases the likelihood of future sales.
D) help convince manufactures to stock a new brand, give it eye-level shelf space, and
promote it in their flyers and other advertisements.
E) is less of a cost than consumer sales promotions.

357) Cooperative advertising:


A) are effective incentives used to maintain or increase inventory levels in the
distribution channel.
B) helps to compensate trade channel members for money they spend promoting
products and encourages them to feature products more often.
C) gives a company’s sales force more in-depth product knowledge, which enhances
their confidence in the product and increases the likelihood of future sales.
D) help convince manufactures to stock a new brand, give it eye-level shelf space, and
promote it in their flyers and other advertisements.
E) is less of a cost than consumer sales promotions.

Version 1 90
358) Sale force training:
A) are effective incentives used to maintain or increase inventory levels in the
distribution channel.
B) helps to compensate trade channel members for money they spend promoting
products and encourages them to feature products more often.
C) gives a company’s sales force more in-depth product knowledge, which enhances
their confidence in the product and increases the likelihood of future sales.
D) help convince manufactures to stock a new brand, give it eye-level shelf space, and
promote it in their flyers and other advertisements.
E) is less of a cost than consumer sales promotions.

359) Two local newspapers join to introduce a national arts magazine called "Across Veniopolis."
Experts from both the firms contribute to the magazine, and the firms bear the costs equally.
The sales promotion tool used is an example of:
A) product placing.
B) a sales contest.
C) cross-promoting.
D) a loyalty program.
E) co-operative advertising.

360) Which of the following terms can be best defined as the efforts of two or more firms joining
together to reach a specific target market?
A) Product placement
B) Loyalty program
C) Cross-promoting
D) Cross-selling
E) Co-operative advertising

361) _______are temporary storefronts that exist for only a limited time and generally focus on a
new product or a limited group of products offered by a retailer.
A) Pop-ups
B) Shorts
C) Quick pops
D) Limited pops
E) Mom and Pops

Version 1 91
362) Shoppers Drug Mart launched a beauty project campaign in downtown Toronto hosted by
“The Real Housewives of Beverly Hills” star Erika Jayne. Consumers were able to try
products at swatching stations and attend master classes run by beauty experts. This is an
example of a ______store.
A) pop-up
B) short
C) quick pop
D) limited pop
E) mom and pop

363) Which of the following is NOT one of the things retailers consider when evaluating trade
promotion?
A) The long-term impact on sales of the promotion.
B) The potential loss suffered when customers switch to the promoted merchandise from
more profitable TVs.
C) The additional sales made to customers attracted to the store by the promotion.
D) The realized margin from the promotion.
E) The potential decrease in sales from the promoted merchandise.

364) Which of the following is NOT one of the things retailers consider when evaluating trade
promotion?
A) The cost of the additional inventory carried because of buying more than the normal
amount of the product.
B) The potential loss suffered when customers switch to the promoted merchandise from
more profitable TVs.
C) The potential increase in sales from the promoted merchandise.
D) The realized margin from the promotion.
E) The short-term impact on sales of the promotion.

Version 1 92
365) Which of the following is the two-way flow of communication between a buyer and a seller
that is designed to influence the buyer's purchase decision?
A) Co-operative selling
B) Personal selling
C) Trade promotion
D) Mass broadcasting
E) Consumer promotion

366) Which of the following statements is NOT true about personal selling?
A) It can be a satisfying career.
B) It is an essential part of many firms' IMC strategy.
C) By definition, it is the face to face communication between two parties.
D) It gives the salesperson the chance to probe the buyer.
E) It is a highly directed approach to customers with the highest potential.

367) Ryan is a real estate agent. He believes in offerings solutions to his clients' problems. He
always listens carefully to his clients' preferences and concerns and comes up with solutions
to solve those problems. Which of the following BEST describe Ryan's practices?
A) Customer relationship management
B) Transaction selling
C) Sales approach
D) Relationship selling
E) Team selling

368) Which of the following is NOT a way one builds value via personal selling?
A) Building relationships
B) Educating
C) Providing advice
D) Simplifies things for customers
E) Increase customer's time going through the buying process.

Version 1 93
369) Which of the following is NOT a step in the personal selling process?
A) Closing the sale
B) Follow-up
C) Preappraoch
D) Post-approach
E) Generate Leads

370) Which of the following is NOT a step in the personal selling process?
A) Qualify leads.
B) Generate leads.
C) Overcoming objections.
D) Sale presentation.
E) Application of cognitive dissonance tactics.

371) In the personal selling process, which of the following terms refers to a list of potential
customers?
A) Prospects
B) Internals
C) Leads
D) Externals
E) Qualifiers

372) In the personal selling process, qualifying the leads refers to:
A) closing the sales with them.
B) assessing their sales potential.
C) using their resources for sales.
D) finalizing a contract with them.
E) making sales presentations to them.

Version 1 94
373) Which of the following is the first step in the personal selling process?
A) Developing plans for meeting customers
B) Completing the sales preapproach
C) Completing the sales presentation
D) Overcoming objections
E) Generating and qualifying leads

374) Which of the following refers to major events attended by buyers who choose to be exposed
to products and services offered by potential suppliers in an industry?
A) Product placements
B) Sales contests
C) Trade shows
D) Point-of-purchase displays
E) Loyalty programs

375) Which of the following is a method of prospecting in which salespersons telephone or go to


see potential customers without appointments?
A) Product placement
B) Sales contest
C) Trade show
D) Cold calling
E) Telemarketing

376) Which of the following is a key difference between cold calling and telemarketing?
A) Cold calling is considered an intrusion into customers' privacy, whereas telemarketing
does not disturb customers.
B) Cold calling does not establish potential customers' needs ahead of time, whereas
telemarketing does.
C) Cold calling typically results in sales, whereas telemarketing does not get converted
into a sale.
D) Cold calling is a form of personal selling, whereas telemarketing is a form of trade
promotion.
E) Cold calling can involve personal meetings, whereas telemarketing does not.

Version 1 95
377) Which of the following occurs prior to meeting a customer for the first time and extends the
qualification of leads procedure?
A) Sales presentation
B) Lead generation
C) Cold calling
D) Preapproach
E) Objection handling

378) In the personal selling process, which of the following extends the qualification of leads
procedure?
A) Objection handling
B) Preapproach
C) Sales closing
D) Sales follow-up
E) Sales presentation

379) Which of the following statements is FALSE regarding sales presentations and overcoming
objections?
A) The end of the presentation may be the most important part of the entire selling
process, because this is when the salesperson establishes exactly where the customer
is in her or his buying process.
B) Carefully listening to the prospects answers is very important in this stage of the
selling process.
C) Some salespeople, particularly inexperienced ones, believe that to be in control of the
sales pitch, they must do all the talking.
D) If the salesperson isn't listening carefully to the prospect, he or she won't pick up on
the subtle nuances of what the customer is really thinking.
E) An integral part of the sales presentation is handling objections that the buyer might
have about the product or service.

Version 1 96
380) Identify the correct statement about the personal selling process.
A) It is important for salespeople to believe that they must do all the talking to be in
control.
B) Good salespeople pay attention to the body language of potential customers.
C) Objections arise only during the third stage of the selling process.
D) The best way to handle objections is to try to prove that customers' objection are not
valid.
E) The first step in the selling process is used extensively in retail settings.

381) In the personal selling process, closing the sale means:


A) obtaining a commitment from a customer to make a purchase.
B) losing out on selling a product or service to a customer.
C) making a sale without generating net profit.
D) backing off from selling a product or service to a customer.
E) making a sales presentation and successfully handling a customer's objections.

382) _____ means obtaining a commitment from the customer to make a purchase.
A) Closing the sale
B) Handling objections
C) Haggling
D) Cold calling
E) Qualifying

383) In the personal selling process, the follow-up presents a prime opportunity for salespeople to:
A) solidify the customer relationship.
B) handle a customer's objections.
C) screen and qualify customers.
D) make cold calls to customers.
E) increase the use of telemarketing.

Version 1 97
384) In the context of relationship selling, the salesperson and support group is required to be
ready to deal quickly with any issue, question, or problem that may arise. This service quality
dimension can be most accurately termed as:
A) reliability.
B) responsiveness.
C) assurance.
D) empathy.
E) tardiness.

385) In the context of relationship selling, a salesperson and support group is required to have a
good understanding of the problems and issues faced by their customers. This service quality
dimension can be most accurately termed as:
A) reliability.
B) responsiveness.
C) assurance.
D) empathy.
E) tardiness.

386) A customer was delighted by the performance of a sales group after they had immediately
responded and resolved the issues experienced by their customer. Which of the following
service quality dimensions most likely aided in ensuring successful customer service?
A) Integrity
B) Tangibility
C) Responsiveness
D) Assurance
E) Reliability

387) In the context of relationship selling, which of the following service quality dimensions has
a more subtle influence than others?
A) Reliability
B) Responsiveness
C) Assurance
D) Empathy
E) Tangibles

Version 1 98
388) Albesco Electricals Inc. owns the most popular refrigerator brand in the country of Plethoria.
The company also manufactures a range of electrical and electronic products. Albesco works
continually to build its brand's reputation and is also planning to expand its operations to a
neighbouring country.

388.1) Customers think of Albesco's refrigerator brand every time they think of a refrigerator.
Which of the following is the stage of the AIDA model in which this brand awareness
usually occurs?
A) Decision
B) Action
C) Desire
D) Attention
E) Interest

388.2) Albesco Electricals Inc. introduces a new range of electronic toys in Plethoria. The
company targets children between the ages of 5 and 12. To grab the attention of children and
their parents, the company creates humorous advertisements. Which of the following is the
stage of the AIDA model in which this activity of advertisement creation can be found?
A) Interpretation
B) Interest
C) Desire
D) Action
E) Development

388.3) Albesco Electricals Inc. launches most of its products in the country of Constantico as
well. Before it launched its latest product in Constantico, Albesco broadcast advertisements
that created brand awareness. Now, the company has changed its advertising messages to
tempt customers to purchase the new product. In this scenario, which of the following is the
stage of the AIDA model in which this creation of temptation among consumers to purchase
a product is most likely found?
A) Attention
B) Interest
C) Desire
D) Action
E) Development

Version 1 99
389) FrostyFine Corp. is a leading retail store. The store markets various brands and a wide
variety of retail products. The store has built a brand for itself, and customers trust the store
as much as the brands in its stores.

389.1) FrostyFine allows customers to enter a draw when they make a purchase costing more
than $50. The draws are conducted every week, and the winning customers who are selected
through a random draw are rewarded with gifts. This promotional technique is an example of
a:
A) sampling program.
B) sweepstake.
C) deal.
D) contest.
E) loyalty program.

389.2) FrostyFine Inc. applied a sales promotion technique for attracting new customers.
According to this technique, if a customer buys two electronic products, they could pick a
third product for free. This sales promotion used by FrostyFine can be best categorized as a:
A) loyalty program.
B) rebate.
C) contest.
D) deal.
E) sweepstake.

389.3) FrostyFine decides to offer discount coupons to its regular customers. Which of the
following is the primary objective of this action?
A) Providing high visibility of their products
B) Encouraging customers to try their products
C) Stimulating demand for their products
D) Creating high cost to the company
E) Demonstrating product uses to their customers

Version 1 100
390) Which of the following is the stage in the AIDA model that is associated with an actual
purchase by customers?
A) Attention
B) Development
C) Desire
D) Interest
E) Action

391) A new brand attempts to create awareness among its target customers. In which of the
following stages of the AIDA model is the brand most likely to be found?
A) Interest
B) Feel
C) Action
D) Desire
E) Attention

392) According to the AIDA model, which of the following immediately leads to the action stage?
A) Interest
B) Feel
C) Action
D) Desire
E) Attention

393) A company decides to give some product units to its target market for free. Which of the
following is most likely to be the objective of this initiative?
A) Increasing the switching costs associated with the product
B) Empathizing with the problems and issues faced by customers
C) Building a channel for communicating with customers
D) Promoting brand trial of the product
E) Signaling that the product is of high quality by improving its tangibles

Version 1 101
394) A company introduces a lucky draw at its retail outlets to increase the sale of its products.
Which of the following is a primary disadvantage of using this strategy?
A) It does not provide the firm with any sort of control over the offers.
B) The sale is likely to decline when the offer is withdrawn.
C) It will not encourage higher consumption.
D) It increases consumer risk.
E) It is difficult to get a good location in the store.

395) Thomas Pizza Corp. specifies discounts on specific items right on the products' packages.
Customers can produce these package labels during a subsequent purchase to receive the
discounts. This is an example of a:
A) premium.
B) contest.
C) deal.
D) rebate.
E) coupon.

396) Coupons carried in print newspapers and magazine as well as online have a low redemption
rate.
⊚ true
⊚ false

397) Top-of-mind awareness occurs when consumers recognize a brand when its name is
presented to them.
⊚ true
⊚ false

398) Marketing communication must work to increase a customer's interest level once he or she is
aware that a company or product exists.
⊚ true
⊚ false

Version 1 102
399) A company named DFS Inc. starts a marketing campaign to get people to try its innovative
stain remover, but only 50 percent of the product trials result in actual sales. This is an
example of the lagged effect.
⊚ true
⊚ false

400) A sales promotion advertisement created by a company named Tadez Corp. to increase its
already established product's short-term sales is an example of an informative advertisement.
⊚ true
⊚ false

401) Institutional advertisements are used to inform, persuade, and remind consumers about
issues related to places, politics, an industry, or a particular corporation.
⊚ true
⊚ false

402) The Competition Act of 1986 enforces federal laws that ensure businesses in Canada operate
in a fair and equitable manner.
⊚ true
⊚ false

403) An online retailer sells a product to a customer through deception. This is an example of
puffery.
⊚ true
⊚ false

404) Encouraging repurchase is the major objective of loyalty programs.


⊚ true
⊚ false

Version 1 103
405) A firm named Pizzerio Inc. offers free pizzas based on a chance drawing of consumers who
buy and fill up lucky-draw forms from its retail stores. This is an example of a sweepstake.
⊚ true
⊚ false

406) A display located at the checkout counter of a textile showroom is an example of a point-of-
purchase display.
⊚ true
⊚ false

407) Discounts and allowances are effective incentives used to maintain or increase inventory
levels in the distribution channel.
⊚ true
⊚ false

408) Personal selling is the two-way flow of communication between a buyer and a seller that is
designed to influence the buyer's purchase decision.
⊚ true
⊚ false

409) Susan is a sales representative of a pharmaceutical company. She often visits hospitals
without taking formal appointments from the doctors. Such visits are known as cold calls.
⊚ true
⊚ false

410) Objections are unlikely to occur during the sales presentation stage of personal selling.
⊚ true
⊚ false

411) Closing the sale refers to the termination of a sale owing to the dissatisfaction of a customer.
⊚ true
⊚ false

Version 1 104
412) Explain the difference between aided recall and top-of-mind awareness. Provide examples to
support your answer.

413) What is the lagged effect. Why is there a lag?

414) Distinguish between informative advertising and persuasive advertising. Provide one
example for each.

415) What is reminder advertising? In what stage of product life cycle it should be used? Provide
one example.

416) Why is the Competition Act considered important legislation?

Version 1 105
417) Briefly explain the difference between advertising regulations in Canada and the European
Union in terms of handling puffery.

418) Explain the use of coupons in promotion with an example.

419) Distinguish between a contest and a sweepstake.

420) What is product placement? Provide one example.

421) What is meant by relationship selling?

Version 1 106
422) Identify and briefly discuss the stages of the AIDA Model.

423) Explain how professional selling can be a satisfying career.

424) Explain any three types of consumer sales promotions. Provide one example for each.

425) Explain trade channel sales promotions.

426) Explain the major steps in the personal selling process for a real estate agent. What is the
objective of each stage?

Version 1 107
Answer Key
Test name: Grewal6ceCh15

1) A
2) C
3) A
4) C
5) D
6) D
7) C
8) A
9) A
10) B
11) C
12) D
13) D
14) A
15) C
16) B
17) D
18) A
19) A
20) B
21) D
22) A
23) C
24) C
25) A
26) A
27) B
28) C
29) C
30) B
31) A
32) D
33) D
34) D
35) C
36) B
37) D

Version 1 108
38) D
39) D
40) D
41) A
42) C
43) D
44) D
45) D
46) D
47) D
48) D
49) D
50) D
51) A
52) B
53) B
54) C
55) D
56) C
57) A
58) B
59) C
60) B
61) A
62) D
63) D
64) B
65) C
66) D
67) C
68) B
69) D
70) D
71) C
72) C
73) D
74) D
75) D
76) C
77) A

Version 1 109
78) D
79) B
80) B
81) B
82) C
83) C
84) C
85) C
86) C
87) B
88) C
89) D
90) D
91) D
92) D
93) A
94) B
95) B
96) C
97) A
98) C
99) C
100) C
101) D
102) C
103) B
104) D
105) A
106) C
107) B
108) C
109) D
110) C
111) E
112) A
113) A
114) A
115) C
116) E
117) A

Version 1 110
118) B
119) C
120) E
121) A
122) A
123) B
124) C
125) B
126) B
127) C
128) C
129) D
130) B
131) E
132) A
133) E
134) B
135) D
136) E
137) C
138) B
139) C
140) D
141) C
142) A
143) A
144) B
145) E
146) A
147) B
148) D
149) C
150) B
151) E
152) B
153) B
154) C
155) E
156) A
157) A

Version 1 111
158) E
159) D
160) C
161) C
162) D
163) A
164) D
165) A
166) C
167) D
168) B
169) B
170) D
171) B
172) A
173) B
174) C
175) A
176) B
177) C
178) B
179) D
180) D
181) C
182) C
183) D
184) E
185) D
186) A
187) C
188) D
189) B
190) A
191) B
192) C
193) A
194) C
195) E
196) A
197) B

Version 1 112
198) B
199) C
200) D
201) B
202) C
203) E
204) C
205) A
206) E
207) Essay
208) Essay
209) Essay
210) Essay
211) Essay
212) Essay
213) Essay
214) Essay
215) Essay
216) Essay
217) Essay
218) Essay
219) Essay
220) Essay
221) Essay
222) Essay
223) Essay
224) Essay
225) Essay
226) Essay
227) Essay
228) Essay
229) Short Answer
230) Short Answer
231) Short Answer
232) Short Answer
233) Short Answer
234) Short Answer
235) Short Answer
236) Short Answer
237) Short Answer

Version 1 113
238) Short Answer
239) Short Answer
240) Short Answer
241) A
242) E
243) D
244) C
245) E
246) E
247) D
248) B
249) C
250) B
251) E
252) A
253) C
254) A
255) A
256) E
257) C
258) C
259) C
260) D
261) C
262) E
263) A
264) D
265) C
266) D
267) B
268) C
269) E
270) E
271) C
272) C
273) A
274) C
275) B
276) E
277) A

Version 1 114
278) A
279) B
280) C
281) D
282) E
283) E
284) E
285) E
286) D
287) D
288) A
289) D
290) B
291) C
292) D
293) D
294) B
295) B
296) A
297) A
298) B
299) D
300) B
301) D
302) D
303) C
304) A
305) B
306) C
307) D
308) E
309) D
310) C
311) A
312) B
313) E
314) C
315) B
316) B
317) B

Version 1 115
318) C
319) D
320) A
321) C
322) E
323) D
324) D
325) D
326) E
327) B
328) C
329) B
330) E
331) A
332) D
333) D
334) A
335) B
336) B
337) C
338) D
339) B
340) A
341) B
342) C
343) D
344) E
345) A
346) B
347) C
348) D
349) A
350) B
351) E
352) A
353) C
354) B
355) B
356) A
357) B

Version 1 116
358) C
359) C
360) C
361) A
362) A
363) E
364) E
365) B
366) C
367) D
368) E
369) D
370) E
371) C
372) B
373) E
374) C
375) D
376) E
377) D
378) B
379) A
380) B
381) A
382) A
383) A
384) B
385) D
386) C
387) E
388) Section Break
388.1) D
388.2) B
388.3) C
389) Section Break
389.1) B
389.2) D
389.3) C
390) E
391) E

Version 1 117
392) D
393) D
394) B
395) E
396) FALSE
397) FALSE
398) TRUE
399) FALSE
400) FALSE
401) TRUE
402) TRUE
403) FALSE
404) TRUE
405) TRUE
406) TRUE
407) TRUE
408) TRUE
409) TRUE
410) FALSE
411) FALSE
412) Short Answer
413) Short Answer
414) Short Answer
415) Short Answer
416) Short Answer
417) Short Answer
418) Short Answer
419) Short Answer
420) Short Answer
421) Short Answer
422) Short Answer
423) Short Answer
424) Short Answer
425) Short Answer
426) Short Answer

Version 1 118

You might also like