Chapter 18Personal Selling and Sales Promotion

ESSAY

1. Identify and discuss the general steps in the personal selling process.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

2. List the three major types of salespeople and indicate how they differ.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate OBJ: 18-03 Identify the types of sales force
personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

3. What is the rationale for having sales force objectives, and how are they developed?

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

4. Discuss why recruitment of salespeople should be a continuous activity.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

5. Explain the major issues to consider when developing a sales training program.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

6. Identify the major features of effective sales force compensation plans.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

7. List three major types of sales force compensation methods. What are the advantages and
disadvantages of each?

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

8. Identify and describe several ways to motivate sales personnel.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

9. Discuss the major factors to consider when designing sales territories.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

10. Explain how a salesperson's performance can be evaluated.

ANS:
Answer not provided.

PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

11. How has the expenditure of promotional dollars on advertising, consumer sales promotion
methods, and trade sales promotion methods changed in recent years?

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

12. Identify and discuss some of the key objectives in using sales promotion.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

13. What are some limitations of using sales promotion?

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

14. Describe consumer sales promotion and trade sales promotion, and then explain how they
differ.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods. | 18-08 Explore trade
sales promotion methods. NAT: AACSB: Communication | MKTG: Promotion
MSC: Knowledge

15. Identify four consumer and four trade sales promotion techniques, and describe each one.

ANS:
Answer not provided.

PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods. | 18-08 Explore trade
sales promotion methods. NAT: AACSB: Communication | MKTG: Promotion
MSC: Knowledge

MULTIPLE CHOICE

16. Paid personal communication that attempts to inform and persuade customers to purchase
products in an exchange situation is called
a. advertising.
b. sales promotion.
c. personal selling.
d. target marketing.
e. public relations.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

17. A major disadvantage of personal selling is that it
a. is not remembered as well by consumers as
advertising messages are.
b. cannot easily adjust the message to satisfy a
customer's information needs.
c. is very expensive per contact.
d. does not provide immediate feedback.
e. is not compatible with other promotional
activities.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

18. A sales career can offer all of the following except a
a. structured, inflexible workday.
b. high income.
c. great deal of freedom.
d. high level of training.
e. high level of job satisfaction.

ANS: A PTS: 1 DIF: Easy
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

19. Personal selling goals include finding prospects, convincing prospects to buy, and
a. monitoring new products being developed.
b. being aware of competitors' sales activities.
c. seeking one-sale customers.
d. avoiding repeat transactions.
e. keeping customers satisfied.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

20. The greatest amount of responsibility for providing customer satisfaction falls on the
shoulders of
a. chief executive officers.
b. salespeople.
c. sales managers.
d. quality control experts.
e. marketing directors.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Customer MSC: Knowledge

21. Jennifer Clarkson, a sales representative for a publisher of college textbooks, had the southern
half of the state as a sales territory. Last year, the director of marketing for the publishing
company told Jennifer's sales manager to increase her territory to the entire state. Now
Jennifer's customers are less satisfied with the company. They are most likely to blame ____
for their reduced level of customer satisfaction.
a. the textbook authors
b. the company's chief executive officer
c. the marketing manager
d. the sales manager
e. Jennifer

ANS: E PTS: 1 DIF: Difficult
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Application

22. Sayyid's company has launched a new product line, and he is put in charge of sales. He
decides his first step will be to find potential customers in the company's sales records.
Sayyid is
a. prospecting.
b. screening.
c. researching.
d. pre-approaching.
e. surveying.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

23. The final stage of the selling process is
a. closing.
b. trial close.
c. presentation.
d. follow-up.
e. overcoming objections.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

24. Developing a list of potential customers is called
a. preapproaching.
b. surveying.
c. scouting.
d. prospecting.
e. screening.

ANS: D PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

25. Scott Bartello, a salesperson for Xerox, develops a list of potential customers and evaluates
them on the basis of their ability, willingness, and authority to purchase copy machines. This
process is called
a. customer search.
b. preapproach.
c. approaching the customer.
d. audience selection.
e. prospecting.

ANS: E PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

26. Company sales records, commercial databases, newspaper announcements, telephone
directories, and public records are all sources used for
a. surveying.
b. screening.
c. researching.
d. preapproaching.
e. prospecting.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

27. Advertising that encourages customers to send in reply cards for additional information aids
salespeople in achieving which goal of personal selling?
a. Convincing prospects to buy
b. Finding prospects
c. Keeping customers satisfied
d. Making the presentation
e. Following up the sale

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Comprehension

28. Carlos generally makes cold calls on businesses to look for new prospects. He has many
satisfied customers, but like many salespeople, he does not frequently utilize one of the best
ways to find new prospects, which is through
a. telephone directories.
b. customer referrals.
c. trade shows.
d. local restaurants.
e. other employees.

ANS: B PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

29. After compiling a list of potential customers, a salesperson must
a. evaluate whether each prospect is able,
willing, and authorized to buy the product.
b. determine whether or not each prospect is
really in his target market.
c. find and analyze information about each
prospect's specific needs and current brand
choices.
d. develop a presentation for each of the
potential customers on his list.
e. contact each of the prospects to get an initial
feel for how likely they are to purchase his
products.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

30. Janetta Light tells her sales manager that she will be devoting more effort to ____ in the
coming weeks, as her list of potential customers has dwindled below the level of 30 firms
recommended by the selling plan.
a. approaching customers
b. preapproaching
c. closing the sale
d. following up
e. prospecting

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

31. Tim has just finished compiling a list of potential customers and evaluating their ability,
willingness, and authority to buy. He knows his next step in the personal selling process is to
a. approach.
b. preapproach.
c. make the presentation.
d. prospect.
e. overcome objections.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Application

32. Before contacting prospects, a salesperson for an industrial cleaning equipment company
analyzes information about the prospects' product needs, feelings about brands, and personal
characteristics. This process is called
a. prospecting.
b. preapproach.
c. approaching the customer.
d. sales training.
e. sales planning.

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Application

33. A salesperson finds and analyzes information about each prospect's specific product needs,
current use of and feeling about brands, and personal characteristics during
a. prospecting.
b. the approach.
c. presentation preparation.
d. overcoming objections.
e. the preapproach.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

34. Garrett Almar tells a fellow buyer at Robins Wholesale Parts that the last salesperson who
called on him before lunch was a real loser: "He has done a poor job of ____. He didn't even
know what brands we carry or what types of retailers we service!"
a. prospecting
b. preapproach
c. follow-up
d. presenting
e. approach

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Application

35. Rick has reviewed a prospect's account and credit history, identified product needs, and
gathered the appropriate literature. He feels he is ready for the ____ step of the personal
selling process.
a. prospecting
b. presentation
c. approach
d. preapproach
e. closing

ANS: C PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Application

36. The step of the personal selling process in which a salesperson contacts a potential customer
is called
a. making the presentation.
b. cold calling.
c. the preapproach.
d. the approach.
e. prospecting.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

37. Creating a favorable impression and developing rapport with prospective customers is a
critical part of the ____ step of personal selling.
a. following up
b. making the presentation
c. approach
d. prospecting
e. preapproach

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

38. Stacey's client group has been gradually shrinking and she is looking for new prospective
clients. She has decided to spend a couple of days approaching potential customers without
any prior consent. Stacey's method of approach is known as
a. referral approach.
b. ambulance chasing.
c. door-to-door selling.
d. cold canvass.
e. repeat contact.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

39. The stage of the personal selling process in which the salesperson attempts to make a
favorable impression, gather information about the customer's needs and objectives, and build
a rapport with the prospective customers is called
a. prospecting.
b. preapproach.
c. approach.
d. making the presentation.
e. overcoming objections.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

40. The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a
desire for the product during the
a. prospecting.
b. preapproach.
c. follow up.
d. approach.
e. sales presentation.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

41. Sherry Sullivan, Kevin Miller's sales manager, points out to him that his last shopper in the
housewares department didn't seem involved as he explained the new food processor to her.
She suggests that he use a ____ as part of his presentation next time.
a. video
b. referral
c. demonstration
d. trial close
e. qualification

ANS: C PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

42. Which of the following is not true when making the sales presentation?
a. The salesperson should focus on anticipating
questions and answering them before they're
asked.
b. The salesperson must spark interest in the
product.
c. The salesperson should not only talk but also
listen to the customer.
d. The salesperson should involve the customer
by having him or her hold, touch, or use the
product.
e. A salesperson should not sound like he or she
is just reading a script (i.e., he or she should
be flexible and respond to the customers'
comments).

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

43. A salesperson will be better able to determine the prospect's specific needs by
a. listening carefully to questions and comments
and watching reactions during the sales
presentation.
b. waiting until after the sale to see how the
client is enjoying the use of the product.
c. doing extensive research before the approach
and making the sales presentation without
adjustment.
d. using trial closings throughout the sales
presentation.
e. making a very thorough and detailed sales
presentation about the products and services
being offered.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

44. Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He
explains that he never really figured out what the purchasing agent was looking for. Camilla,
a sales trainer for another firm, hands Tony a book on
a. listening skills.
b. overcoming objections.
c. prospect evaluation.
d. product demonstrations.
e. closing.

ANS: A PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

45. While anticipating objections and countering them before they are asked is a good idea, one
negative consequence of doing so is that the salesperson may
a. annoy the customer.
b. mention objections the customer had not
thought of.
c. take too long in trying to sell the product, and
the customer may stop listening.
d. not emphasize its features and benefits
enough.
e. begin to lie about the product.

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

46. During the personal selling process, a salesperson, if possible, should handle objections when
a. they arise.
b. the salesperson begins the trial close.
c. the sales presentation is approximately half
completed.
d. when the customer appears to be unhappy or
agitated.
e. when the salesperson begins the sales
presentation.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

47. The ____ stage of the personal selling process is when the salesperson asks the prospect to
buy the product.
a. proposal
b. closing
c. overcoming objections
d. approach
e. trial

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

48. When a salesperson asks the customer to buy the product several times throughout the sales
presentation in an effort to uncover hidden objections, it is called
a. order taking.
b. new-business selling.
c. trial closing.
d. order getting.
e. overcoming objections.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

49. "Mrs. Brucker, you would agree that this is the most attractive car interior in this price range,
wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he
made this statement.
a. referral
b. objective
c. bandwagon approach
d. follow-up
e. trial close

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

50. During his presentation to Mrs. French about a high-end gourmet oven, Brian asks, "Would
you prefer black or stainless steel?" This is an example of a
a. referral.
b. recommendation.
c. follow up.
d. trial close.
e. closing argument.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

51. A salesperson should try to close the sale
a. at the end of the sales presentation.
b. during the preapproach.
c. about halfway through the sales presentation.
d. after overcoming the biggest objection.
e. several times during the sales presentation.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

52. The purpose of the ____ stage in personal selling is to determine customers' problems and
questions about using the product.
a. prospecting
b. approach
c. overcoming-objections
d. follow-up
e. closing

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

53. Cheyenne calls to see if her customer's new hardwood floors were installed correctly
a. during the follow-up step.
b. immediately after the closing.
c. near the end of the sales presentation.
d. the next time she makes a sales call to that
customer.
e. after she receives cash payment from that
customer.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Application

54. Creative selling, which requires that salespeople recognize a potential buyer's needs and then
provide the prospect with the necessary information, is performed by
a. order takers.
b. order getters.
c. missionary salespeople.
d. trade salespeople.
e. technical salespeople.

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension

55. Yolanda's job is to find new customers for her company's telecommunication services. She
encourages existing customers to add more services and finds customers who are completely
new to the company. Yolanda would best be classified as a(n)
a. order taker.
b. order generator.
c. missionary salesperson.
d. technical salesperson.
e. order getter.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

56. Order-getting activities are divided into two categories:
a. missionary sales and technical sales.
b. current-customer sales and new-business
sales.
c. order takers and trade sales.
d. current sales and support sales.
e. inside order sales and field order sales.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

57. A person who primarily seeks repeat sales is called a(n)
a. current customer order getter.
b. order recorder.
c. order taker.
d. follow-up salesperson.
e. missionary salesperson.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

58. The two groups of order takers in personal selling are
a. current customer salespeople and new-
business salespeople.
b. missionary salespeople and trade salespeople.
c. inside order takers and field order takers.
d. trade salespeople and technical salespeople.
e. advisory order takers and support order takers.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

59. Retail salespeople are classified as
a. order getters.
b. support personnel.
c. trade salespeople.
d. inside order takers.
e. field order takers.

ANS: D PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

60. Michelle works for a company that sells rotisseries for chicken and other foods. She answers
phone calls from customers who see infomercials on TV and call to order the product.
Michelle is considered a(n)
a. order getter.
b. inside order taker.
c. support person.
d. field order taker.
e. trade salesperson.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

61. A sales representative for Coca-Cola travels to various restaurants to determine how much
syrup the customer needs for the coming period. This sales representative would be classified
as a(n)
a. order getter.
b. inside order taker.
c. field order taker.
d. missionary salesperson.
e. trade salesperson.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

62. Doug Browton travels around to various established customers to see what new office
supplies they need. His customers have come to depend on him to check their supplies. Doug
is a(n)
a. field order taker.
b. current customer order getter.
c. missionary salesperson.
d. inside order taker.
e. trade salesperson.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

63. A missionary salesperson is usually employed by
a. a retailer.
b. a wholesaler.
c. either a retailer or a producer.
d. a manufacturer.
e. an independent intermediary.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

64. Which of the following is least likely to be directly involved in actually making sales?
a. Order taker
b. Current-customer salesperson
c. Order getter
d. Field order taker
e. Support sales personnel

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Comprehension

65. Assisting the producer's customers in selling to those customers is the major purpose of which
type of salesperson?
a. Trade salesperson
b. Technical salesperson
c. Missionary salesperson
d. Order getter
e. Order taker

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

66. Jin Xiao, a trained engineer, is a salesperson for a chemical manufacturer. He provides
current customers with advice about a product's characteristics and applications. He is a(n)
a. missionary salesperson.
b. trade salesperson.
c. field order taker.
d. inside order taker.
e. technical salesperson.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

67. Daphne King of Cleborn Pharmaceuticals tells a sales management class at the state
university that her job is to call on doctors and explain the benefits of new prescription drugs
that her firm develops. Daphne would call herself a(n)
a. technical salesperson.
b. missionary salesperson.
c. order taker.
d. order getter.
e. trade salesperson.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

68. Maria Martinez works for a cosmetics manufacturer and is responsible for ensuring that
retailers have adequate quantities of products when they need them. However, she is directing
much of her effort toward helping the retailers promote the products. She would be
characterized as belonging to which group of salespeople?
a. Trade salespeople
b. Field order takers
c. Advisory salespeople
d. Technical salespeople
e. Order getters

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

69. Jana works for Hormel Foods and she frequently sets up special displays and distributes
samples of Hormel products to customers in supermarkets. Jana would best be classified as
a(n)
a. trade salesperson.
b. technical salesperson.
c. inside order taker.
d. field order taker.
e. missionary salesperson.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

70. The type of salesperson that usually requires training in physical science or engineering is the
a. trade salesperson.
b. missionary salesperson.
c. technical salesperson.
d. order taker.
e. order getter.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

71. A support salesperson who usually advises customers on product characteristics and
application, system design, and installation procedures is a(n)
a. trade salesperson.
b. inside order taker.
c. tech support worker.
d. missionary salesperson.
e. technical salesperson.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

72. Ryan Amerson leads his company's clients through the installation procedure of their new
industrial equipment. He also helps answer their questions about product characteristics and
system design both before and after their purchases. Ryan is a
a. trade salesperson.
b. missionary salesperson.
c. technical salesperson.
d. systems engineer.
e. field order taker.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

73. In which of the following does the salesperson join with people from the firm's financial,
engineering, and other functional areas to engage in the personal selling process?
a. Trade selling
b. Missionary selling
c. Relationship selling
d. Team selling
e. Technical selling

ANS: D PTS: 1 DIF: Easy
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

74. Which of the following is particularly appropriate for pricey high-tech business products,
such as jet aircraft and medical equipment?
a. Team selling
b. Relationship selling
c. Trade selling
d. Technical selling
e. Missionary selling

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

75. Which of the following involves building mutually beneficial long-term associations with a
customerusually a business customerthrough regular communications over prolonged
periods of time.
a. CRM selling
b. Missionary selling
c. Exclusive selling
d. Team selling
e. Relationship selling

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

76. All of the following are key areas of sales force management except
a. compensating salespeople.
b. coordinating sales promotion efforts.
c. recruiting salespeople.
d. training sales personnel.
e. motivating sales personnel.

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

77. Sales objectives can do all of the following except
a. serve as a deterrent both to salespeople and
their clients.
b. give the sales force direction and purpose.
c. serve as a standard for evaluating salesperson
performance.
d. let the sales force know what is expected of
them.
e. help to control the sales force.

ANS: A PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Knowledge

78. Sales force objectives are generally established for
a. the organization as a whole only.
b. the total sales force and for each salesperson.
c. just each salesperson but not the whole sales
force.
d. for each department or division of the
company.
e. long-term but not short-term salespeople.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

79. Which of the following is the best example of a well-stated sales objective?
a. Companywide sales should increase by 25
percent.
b. Each salesperson should increase his or her
client group by 10 percent.
c. Each salesperson should bring in $25,000 in
new sales by November 15.
d. The sales force should increase the market
share in all markets by December 1.
e. Each salesperson should increase the number
of calls they make by 20 percent.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

80. Sales objectives for individual salespeople can be stated in several ways. Which of the
following would least likely be used for stating an individual salesperson's goal?
a. Dollar volume sales
b. Unit volume sales
c. Average order size
d. Ratio of profits relative to number of sales
calls
e. Average number of calls per time period

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

81. A company may determine how many sales calls per year it needs to serve customers
effectively and divide that by the average number of sales calls made by one salesperson in
order to
a. recruit appropriate salespeople.
b. set sales force calling objectives.
c. compensate salespeople fairly.
d. train its salespeople.
e. determine sales force size.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

82. When better market conditions prevail or when company growth occurs, a company may
suffer if it
a. lowered its sales force objectives.
b. recruited additional salespeople.
c. decided to use a combination compensation
plan.
d. provided additional training for its sales force.
e. cut back the size of its sales force.

ANS: E PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

83. Recruiting and selection of salespeople should include enough steps to yield the information
needed to make accurate selection decisions. However, the stages of the process should be
sequenced so that the more expensive steps are
a. near the beginning.
b. always completed before anything else.
c. near the end.
d. paid by the prospects rather than the
company.
e. never reached.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Comprehension

84. The best advice for recruiting and selecting salespeople for one's organization would be
a. follow a clear set of generally accepted job
characteristics when determining an
applicant's qualifications.
b. keep the expensive stages near the beginning
of the recruiting process.
c. find out how long the applicant plans to stay
with the company.
d. make recruitment a continuous activity aimed
at seeking out the best applicants.
e. recruit primarily from educational institutions.

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

85. Which of the following best characterizes the function of recruiting and selecting a sales
force?
a. It should be a continuous, systematic attempt
to match applicants' characteristics to the
firm's needs.
b. It is a process that should be set up that
incorporates at least two steps: an interview
and a written application.
c. Sources of applicants should be limited, since
the recruitment process is expensive and more
applicants mean greater expense.
d. After interviewing applicants, the manager
should attempt to find a position that can be
tailored to fit applicants' qualifications.
e. It should not be made from personnel in other
departments in the firm, as this would
necessitate training two people rather than
one.

ANS: A PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Comprehension

86. Zack Freedman is an experienced salesperson who has worked for the same company for 20
years. When he is informed that he must attend a training seminar the following Tuesday, he
believes it will most likely be about
a. the company.
b. his customers' companies.
c. basic selling methods.
d. new-product information.
e. prospecting.

ANS: D PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

87. Which of the sales force compensation methods is easy to administer, yields more predictable
selling expenses, and provides sales managers with a large degree of control over
salespeople?
a. Straight commission
b. Salary plus bonus
c. Salary and commission
d. Straight commission and combination
e. Straight salary

ANS: E PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

88. Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a
sales force compensation method. He would like to have selling expenses relate directly to
sales resources, an aggressive sales force, and minimization of nonselling tasks. What
compensation method(s) would best fulfill his requirements?
a. Combination
b. Straight salary
c. Straight salary plus generous fringe benefits
d. Straight commission
e. Salary plus a bonus

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

89. Salespeople receive a set salary plus a commission based on sales with a
a. straight salary compensation plan.
b. combination compensation plan.
c. cafeteria plan.
d. straight commission compensation plan.
e. salary plus bonus program.

ANS: B PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

90. Effective motivation of a sales force is best achieved through
a. annual retreats at resort locations open to
families.
b. emphasizing sales force objectives and their
connection to compensation.
c. an organized set of activities performed
continuously.
d. motivation meetings when sales have
declined.
e. daily pep talks before the sales force makes
sales calls.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

91. In designing sales territories, a sales manager considers several major factors. The territories
must be constructed so that sales potential can be measured; the shape of the territories should
facilitate salespeople's activities to provide the best possible coverage of customers; and
a. territories should be designed to minimize
selling costs.
b. all territories should be of similar size.
c. the territorial pattern should consist of
concentric circles.
d. the density of potential customers should be
minimized.
e. the distribution of customers should be
relatively equal.

ANS: A PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

92. If a manager tries to form territories with equal sales potential, the territories will usually be
unequal in geographic size; this will cause the salespeople with larger territories to
a. develop larger income potentials.
b. have to work longer and harder to generate a
certain sales volume.
c. work about the same amount, since potential
is the same.
d. have much larger sales than those salespeople
with smaller territories.
e. be limited to a smaller income potential.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Reflective Thinking | MKTG: Strategy MSC: Comprehension

93. Customer density and distribution are important factors in
a. prospecting.
b. motivating salespeople.
c. creating sales territories.
d. compensating salespeople.
e. establishing sales force objectives.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

94. A primary goal of routing and scheduling decisions in personal selling is to
a. determine the sequence in which customers
will be called on.
b. use existing transportation facilities.
c. minimize nonselling time.
d. determine duration of sales calls.
e. provide salespeople with an opportunity to
plan their own routes and schedules.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

95. ____ are designed to identify the customers called on and to present detailed information
about interaction with those clients.
a. Invoices
b. Feedback notices
c. Work schedules
d. Call reports
e. Recall files

ANS: D PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

96. The most common sales force evaluation practices are for sales managers to compare a
salesperson's performance with other salespeople operating under similar selling conditions,
or to compare
a. the size of sales territories.
b. selling expenses by various members of the
sales force.
c. the amount of new business generated.
d. current performance with past performance.
e. the ratio of costs to profits.

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

97. Ray Singh is preparing to evaluate one of his sales representatives, Julie Hill. His evaluation
of her performance for the prior year led to his conclusion that she lacked key product
information. At their upcoming session, he will most likely do which of the following?
a. Decrease the size of her territory.
b. Increase her sales quotas.
c. Terminate her.
d. Recommend that she attend a training
program.
e. Ignore this problem given that her sales
results were good.

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Application

98. Dorothy won a hot-air balloon ride and dinner for two for being the top revenue-producing
mortgage loan officer at her company for the month of October. This contest exemplifies a
company's efforts at
a. motivating salespeople.
b. compensating salespeople.
c. providing training for the sales force.
d. managing sales territories.
e. selecting salespeople.

ANS: A PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

99. In establishing sales promotion objectives, a marketer should always
a. concentrate on activities that will increase
consumer demand.
b. focus on consumers.
c. focus on resellers.
d. be defensive in the methods used.
e. align objectives with the organization's overall
objectives.

ANS: E PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

100. In recent years the proportion of promotional dollars spent on sales promotion has
a. increased relative to advertising.
b. remained constant.
c. declined slightly, and the proportion spent on
advertising has increased.
d. declined slightly, and the proportion spent on
advertising has declined as well.
e. increased, and the proportion spent on
advertising has risen as well.

ANS: A PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

101. Which of the following is not a reason why the proportion of promotional dollars spent on
sales promotion has increased in recent years?
a. Retailers have become more powerful relative
to manufacturers and are demanding more
trade sales promotion efforts.
b. Because of an increased focus on value,
consumers are more responsive to
promotional offers.
c. The greater emphasis on improving long-term
performance has resulted in an increased use
of sales promotion methods.
d. Sales promotions aimed at convincing
customers to change brands are more effective
because of declines in brand loyalty in
general.
e. All of these are reasons for the increasing
proportion of promotional dollars being spent
on sales promotion efforts.

ANS: C PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

102. Heinz uses various techniques such as coupons, free samples, and consumer contests to
encourage consumers to try its products. All of these marketing activities are considered
a. trade sales promotion methods.
b. consumer incentives.
c. consumer sweepstakes.
d. buying allowances.
e. consumer sales promotion methods.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

103. As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all
the advantages and disadvantages of the various consumer sales promotion methods. After
careful consideration, Quaker Oats decides to use ____, which are the most widely used form
of consumer sales promotion.
a. free samples
b. rebates
c. point-of-purchase displays
d. coupons
e. cents-off offers

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

104. Fraudulent usage, inability to attract potentially brand-loyal customers, and use by current
customers but not new customers are believed to be disadvantages of which of the following?
a. Sweepstakes
b. Money refunds
c. Frequent-user incentives
d. Coupons
e. Premiums

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

105. As a promotional strategy, using coupons strives to achieve all of the following except
a. show how a product is used.
b. increase sales volume quickly.
c. introduce new package sizes.
d. prompt trial usage of a new product.
e. attract repeat users.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

106. ____ are offers of cash to customers who purchase a specific product, and ____ are offers of
cash to customers who purchase a specific quantity of a specific product.
a. Rebates; reimbursements
b. Cents-off; refunds
c. Rebates; premiums
d. Buy-back allowances; money refunds
e. Rebates; money refunds

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Application

107. Which of the following is most likely to stimulate customer loyalty?
a. Coupons
b. Sweepstakes
c. Frequent-user incentives
d. Samples
e. Premiums

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

108. Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie
after they have filled an entire card. This is an example of a
a. free sample.
b. rebate.
c. frequent-user incentive.
d. premium.
e. consumer contest.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

109. Signs, counter pieces, racks, and self-service cartons are all forms of
a. in-store attention grabbers.
b. demonstrations.
c. retail media.
d. premiums.
e. point-of-purchase displays.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

110. Although Maybelline would like to use ____ as a consumer sales promotion method, this
method has extremely high labor costs that are more affordable for higher-end make-up
companies such as Clinique and Este Lauder.
a. frequent-user incentives
b. demonstrations
c. coupons
d. rebates
e. consumer contests

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

111. Realizing that her firm's sales promotion budget was small and cut by 30 percent for the
coming year, Stacey Baronas rules out ____ as playing a role in her sales promotion plan.
a. samples
b. coupons
c. point-of-purchase materials
d. money refunds
e. premiums

ANS: A PTS: 1 DIF: Difficult
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

112. To increase sales of Chex cereals, Ralston Purina offered a free pound of bananas to
customers who bought the large-size box. This form of sales promotion is called a
a. premium.
b. coupon.
c. cents-off offer.
d. free sample.
e. money refund.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

113. ____ are items offered free or at minimal cost as a bonus for purchasing a product.
a. Rebates
b. Premiums
c. Samples
d. Merchandise allowances
e. Coupons

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

114. At one time, Wheaties offered two free golf balls with the purchase of a twin pack of
Wheaties cereal featuring Tiger Woods. This is an example of a
a. consumer prize.
b. rebate.
c. premium.
d. free sample.
e. free merchandise.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Application

115. On a break between classes, Kelley Macon selects two magazines and mails the Publishers
Clearing House entry form. She doubts that she will win $10 million, but she never passes up
a chance to participate in a
a. premium.
b. consumer contest.
c. sampling.
d. sales contest.
e. sweepstakes.

ANS: E PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

116. The difference between consumer sales promotion methods and trade sales promotion
methods is
a. with consumer sales promotion, marketers try
to persuade retailers to carry their products.
b. with trade sales promotion, marketers focus
on trading with consumers.
c. consumer and trade sales promotions aim at
retailers, but only trade sales promotions aim
at wholesalers.
d. consumer sales promotions focus on getting
consumers to buy their products, whereas
trade sales promotions focus on getting
wholesalers and retailers to buy.
e. trade sales promotions attempt to persuade
people to buy at particular stores, whereas
consumer sales promotions focus on
persuading people to buy particular products.

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Knowledge

117. Any marketing tactic used to stimulate wholesalers and retailers to carry a producer's products
and market those products more aggressively is a
a. trade sales promotion method.
b. point-of-purchase material.
c. consumer sales promotion method.
d. merchandise allowance.
e. dealer loader.

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

118. Which of the following is an example of a trade sales promotion method?
a. Frequent-user incentives
b. Point-of-purchase displays
c. Retailer coupons
d. Free merchandise
e. Money refunds

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

119. A temporary price reduction to resellers for purchasing specified quantities of a product is
a. premium money.
b. a merchandise allowance.
c. a buying allowance.
d. a buy-back allowance.
e. a money refund.

ANS: C PTS: 1 DIF: Easy
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

120. Sometimes retailers are offered temporary price reductions for purchasing specified quantities
of a product. These offers are used to provide an incentive to handle a new product, to
achieve a temporary price reduction, or to stimulate the purchase of an item in large
quantities. What is this sales promotion?
a. Push money
b. Buy-back allowance
c. Buying allowance
d. Cents-off offer
e. Money refund

ANS: C PTS: 1 DIF: Difficult
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Comprehension

121. If Green Giant wants to provide its resellers with a secondary incentive to stimulate
repurchases after an initial consumer coupon campaign for its latest product, it can offer
resellers a sum of money for each unit purchased. This type of sales promotion is a
a. buying allowance.
b. count-and-recount allowance.
c. scan-back allowance.
d. buy-back allowance.
e. coupon follow-up campaign.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

122. When a manufacturer rewards retailers based on the number of pieces moved through their
scanners, this sales promotion method is known as a
a. merchandise allowance.
b. count-and-recount allowance.
c. buy-back allowance.
d. scan-back allowance.
e. scan-count allowance.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

123. When Levi's agrees to pay JC Penney's money for providing television advertising and
Sunday newspaper sales fliers emphasizing Levi's jeans, Levi's is offering
a. premium money.
b. cooperative advertising.
c. a dealer loader.
d. a buying allowance.
e. a merchandise allowance.

ANS: E PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

124. An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for
advertising that manufacturer's products is
a. a buy-back allowance.
b. a merchandise allowance.
c. premium money.
d. push money.
e. cooperative advertising.

ANS: E PTS: 1 DIF: Difficult
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

125. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is
available at Kmart and Wal-Mart. This form of sales promotion is called a(n)
a. cooperative advertising.
b. dealer listing.
c. push money.
d. dealer loader.
e. advertising allowance.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

126. A ____ is a gift to a retailer who purchases a specified quantity of merchandise.
a. dealer loader
b. premium
c. dealer listing
d. merchandise allowance
e. count and recount

ANS: A PTS: 1 DIF: Easy
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

127. A dealer loader is
a. additional compensation to salespeople from
the manufacturer to promote a line of goods.
b. an agreement in which a producer offers free
merchandise to a retailer.
c. an advertisement that promotes a product and
identifies retailers who sell the product.
d. a gift to a retailer who purchases a specified
quantity of merchandise.
e. a temporary price reduction to resellers for
purchasing a certain quantity of merchandise.

ANS: D PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

128. Aaron Epstein tells his fellow retail salesperson at Zales Jewelers that during the second
quarter he is going to sell all the Alance watches he can and use his extra earnings to go to
Cancun. He exclaims, "Can you believe the ____ program they have on for this quarter?"
a. buying allowance
b. merchandise allowance
c. push money
d. dealer loader
e. sweepstakes

ANS: C PTS: 1 DIF: Difficult
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

129. While sales contests can motivate employees at all levels to participate, a disadvantage of this
method of sales promotion is that
a. they are often too complicated.
b. they are not taken seriously by the employees.
c. people often discontinue their positive
behavior after the contest is over.
d. many point-of-purchase display materials are
needed to implement a contest.
e. people often feel they are not being
recognized enough.

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

Scenario 18.1
Use the following to answer the questions.

Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various
motorcycle retail stores around the country. Jafrum does not manufacture these items, but
sells them to other retailers and also sells its merchandise through its website. Sean
Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new
customers, increasing sales to current customers, and visiting the retail stores throughout the
country. Recently, he has been given the sales objective from Jafrum's management to
increase sales dollars by 15% in the coming year by adding new customers. Sean's current
compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His
salary last year totaled $42,000. Management has given Sean the choice of going to a
compensation plan where he will earn 15% of all sales, but no draw.

130. Refer to Scenario 18.1. Sean is developing his list of potential new retail customers by
accessing the yellow pages online. Here he finds the contact information for every motorcycle
store in the 48 contiguous states, and eliminates those who currently are his customers. Sean
is involved in which step of the personal selling process?
a. Prospecting and evaluating
b. Preapproach
c. Overcoming objections
d. Closing
e. Following up

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

131. Refer to Scenario 18.1. Sean selects several motorcycle stores who are not currently his
customers. He then obtains and analyzes information about the current brands of motorcycle
accessories they stock, their sales trends, and credit history. Sean is engaged in which of the
following?
a. prospecting.
b. the preapproach.
c. approaching the customer.
d. making the presentation.
e. overcoming objections.

ANS: B PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

132. Refer to Scenario 18.1. Sean has narrowed his list and is preparing a packet of information
about Jafrum and its products to send to the prospects. He also includes a letter of
introduction and says he will contact them within the next two weeks to set up a sales visit. In
this scenario, Sean is all of the following except
a. a trade salesperson.
b. a field order taker.
c. a missionary salesperson.
d. an order getter.
e. a new business salesperson.

ANS: C PTS: 1 DIF: Difficult
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

133. Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan, however he
is considering changing to the ____ plan.
a. straight salary; salary plus commission
b. straight commission; straight salary
c. salary plus commission; straight commission
d. salary plus bonus; straight bonus
e. straight bonus; straight commission

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

Scenario 18.2
Use the following to answer the questions.

The Presto Company manufactures several types of household appliances, including blenders,
waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's,
Macy's, and J.C. Penney's, through its own salesforce. Kerry Wilson is one of Presto's
salespeople, and is responsible for stores headquartered in Region 1 of the U.S. Kerry has just
come from a monthly meeting where she has been informed about the new stovetop grill that
will be part of next season's lineup. Presto's marketing department has developed a
promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The
promotional plan for the next 60 days will include television commercials which demonstrate
the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In
addition, Kerry and other members of the salesforce will be given a free grill for their own
home use so they can become more familiar with the product. Presto is also offering a free
trip to New York City for their staff salesperson who has the highest dollar in sales to his or
her stores. To encourage the retail stores to push this product, Presto will offer the retail store
a $5 discount for each grill that the store purchases after the 60-day promotion is over.

134. Refer to Scenario 18.2. Kerry and the other salesforce members are best described as a ____
sales force.
a. technical
b. missionary
c. trade
d. field
e. pioneer

ANS: B PTS: 1 DIF: Difficult
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

135. Refer to Scenario 19.2. Presto appears to be using ____ to educate its sales force.
a. formal sales training
b. on-the-job training
c. negative motivation
d. territorial meetings
e. recruiting training

ANS: A PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Application

136. Refer to Scenario 19.2. Which of the following are consumer sales promotion methods that
Presto is using for the new stovetop grill?
a. television commercials and the customer
contest
b. television commercials and the in-store rebate
c. the customer contest and the in-store rebate
d. the sales force contest and the in-store rebate
e. the sales force contest and the customer
contest

ANS: C PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Application

137. Refer to Scenario 19.2. Presto's use of a free trip to New York is an example of ____, while
the $5 discount to its retail stores is an example of ____.
a. a trade allowance; a buy-back allowance
b. a buying allowance; a dealer loader
c. a dealer loader; a buy-back allowance
d. a sales contest; a buy-back allowance
e. a sales contest; a buying allowance

ANS: D PTS: 1 DIF: Difficult
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Reflective Thinking | MKTG: Promotion MSC: Application

TRUE/FALSE

138. Personal selling is generally the most expensive element in the promotion mix.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

139. The primary goals of personal selling are finding prospects, convincing prospects to buy, and
keeping customers satisfied.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-01 Understand the major purpose of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

140. Most marketers depend on one-sale customers for long-run survival.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

141. Developing a list of potential customers is called prospecting.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

142. The preapproach is the first step in the personal selling process.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

143. Even though salespeople do not use the exact same sales methods, they do go through the
same general selling process.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

144. In the cold canvass technique, the salesperson calls on potential customers without their prior
consent.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

145. Using referrals falls under the approach step in the personal selling process.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

146. The approach step is an important step for gathering information about a buyer's needs and
objectives.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

147. Listening on the part of a salesperson is a major component in making a presentation.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

148. One of the best ways to overcome a prospect's objections is to anticipate them and to deal
with them before the prospect has an opportunity to mention them.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

149. A salesperson should not attempt to close a transaction until he or she has finished the entire
presentation.

ANS: F PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

150. Closing the sale is not a part of the sales presentation in which hidden objections are
discovered.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

151. It is never good to ask customers questions while giving the sales presentation, as the
customer may raise objections that the salesperson cannot overcome.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

152. If possible, the salesperson should handle objections only when they arise.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

153. Following up involves listening to a customer's response after finishing the presentation and
overcoming those objections.

ANS: F PTS: 1 DIF: Difficult
OBJ: 18-02 Describe the basic steps in the personal selling process.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

154. Order getters are sometimes called creative sellers.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

155. A single salesperson may perform the functions of order getting, order taking, and support.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

156. Current customers are sources of leads for finding prospective customers.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

157. Locating prospects, educating customers, and building goodwill are functions performed by
support personnel.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-03 Identify the types of sales force personnel.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

158. The missionary salesperson's primary purpose is to sell to the producer's customers.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

159. Some support personnel, such as trade salespeople, may perform order-taking functions in
addition to support functions.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

160. The focus of personal selling is shifting from selling a specific product to building long-term
relationships with customers by finding solutions to their needs, problems, and challenges.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Marketing Plan
MSC: Knowledge

161. Team selling involves building mutually beneficial long-term associations with a customer
through regular communications over prolonged periods of time.

ANS: F PTS: 1 DIF: Difficult
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Marketing Plan
MSC: Knowledge

162. Relationship selling is used especially in consumer marketing.

ANS: F PTS: 1 DIF: Difficult
OBJ: 18-04 Recognize new types of personal selling.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

163. Selection of the right type and proportion of salespeople is important because it is a one-time
decision that affects the company's ability to generate sales and profits.

ANS: F PTS: 1 DIF: Difficult
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

164. When determining the characteristics desirable in salespeople, the sales manager should
analyze the characteristics of the successful and ineffective sales personnel within the firm.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

165. Among others, management recruits from within the firm or from recommendations of
individuals by current employees.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

166. Because salespeople are an expense to the company, yet they are the ones who generate
revenues for the company, management must strive to achieve optimality in the size of its
sales force.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

167. Sporadic recruiting is more desirable than continuous recruiting because of the expense
involved in the process.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

168. Regardless of one's experience, firms always put new employees through a training program
geared for their specific firm.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

169. Training programs designed for experienced company salespeople generally are oriented
toward product information.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

170. A straight commission compensation program ensures that selling costs will be predictable.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

171. Effective sales force motivation is achieved through a continual organized set of activities
performed by the company's sales management.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

172. The aim of a motivational program is to create a working environment in which sales
personnel can achieve their goals.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

173. To equalize the workload, a sales manager divides a geographic market into sales territories
of equal size according to land area.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

174. Maximization of selling time and minimization of nonselling time are the major goals of
routing and scheduling decisions.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

175. A salesperson with a larger territory will have the advantage of being able to achieve more
sales than salespeople with smaller territories.

ANS: F PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

176. Salespeople should know the sales objectives of the firm in order to know what they are
expected to accomplish.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Analytic | MKTG: Strategy MSC: Knowledge

177. Generally, a salesperson's performance is judged by comparing it with predetermined
standards rather than by comparing it with the performance of other salespeople.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

178. The factors used to evaluate a salesperson's performance are based on the sales objectives set
by the sales manager for that salesperson.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

179. A salesperson's performance is often compared with the performance of other salespeople
operating under similar conditions.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-05 Understand sales management decisions and activities.
NAT: AACSB: Communication | MKTG: Strategy MSC: Knowledge

180. Sales promotion activities are always supplementary to personal selling and advertising.

ANS: F PTS: 1 DIF: Easy
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

181. Decisions regarding sales promotion do not affect advertising decisions.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

182. Generally, sales promotion attempts to influence consumers to purchase products but is not
normally aimed at resellers.

ANS: F PTS: 1 DIF: Easy
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

183. Sales promotion may facilitate personal selling.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

184. Sales promotion activities are generally used in conjunction with other promotional efforts.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

185. Sales promotion objectives should be consistent with the organization's overall objectives and
its marketing objectives.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-06 Explain what sales promotion activities are and how they are used.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

186. A marketer's selection of sales promotion techniques is influenced by the state of the
competitive environment.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Strategy
MSC: Knowledge

187. Two major categories of sales promotion methods are consumer and trade.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

188. One objective of consumer sales promotion techniques is to encourage patronage for a
specific retail store.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

189. Many consumers redeem coupons only for products they normally buy.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

190. Most people who purchase rebated products actually apply for the rebates.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

191. Demonstrations in retail stores are not used widely because they are expensive.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

192. The use of sampling is declining.

ANS: F PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

193. Consumer contests and sweepstakes are used to promote established products and tend to
generate similar levels of consumer response.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

194. Generally, consumer sweepstakes are more popular than consumer contests.

ANS: T PTS: 1 DIF: Easy
OBJ: 18-07 Explore specifice consumer sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion | MKTG: Customer
MSC: Knowledge

195. Buying allowances are effective promotional techniques because they result in profits for
resellers.

ANS: T PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Analytic | MKTG: Promotion MSC: Knowledge

196. Merchandise allowances are generally used in conjunction with high-volume, low-profit
items.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge

197. Cooperative advertising refers to advertisements promoting a product and identifying
participating retailers that sell the product.

ANS: F PTS: 1 DIF: Moderate
OBJ: 18-08 Explore trade sales promotion methods.
NAT: AACSB: Communication | MKTG: Promotion MSC: Knowledge