Sales Promotion: Boosting Customer Purchases and Trial

Question 1

What is the primary purpose of a coupon?

Accepted Answer

Provide a price discount to encourage immediate purchase

Answer

Offer a free gift or sample with purchase

Answer

Build long-term brand loyalty

Answer

Increase customer engagement

Question 2

What is the difference between a point-of-purchase (POP) display and a point-of-sale (POS) display?

Accepted Answer

POP displays are located in the aisles, while POS displays are located at the checkout counter

Answer

POP displays are used to promote new products, while POS displays are used to promote existing products

Answer

POP displays are typically larger than POS displays

Answer

There is no difference between a POP and POS display

Question 3

Which of the following is an example of a below-the-line sales promotion technique?

Accepted Answer

Direct mail

Answer

Television advertising

Answer

Public relations

Answer

Billboard advertising

Question 4

What is the term for a sales promotion that offers a free gift or sample with purchase?

Accepted Answer

Premium

Answer

Rebate

Answer

Coupon

Answer

Loyalty program

Question 5

Why is it crucial to establish clear objectives when developing a sales promotion campaign?

Accepted Answer

To guide the campaign's development and execution

Answer

To identify the target audience's needs

Answer

To justify the campaign's expenses

Answer

To prevent wasting time and resources

Question 6

Which of the following is NOT an advantage of using sales promotions?

Accepted Answer

Reduced customer satisfaction

Answer

Increased brand awareness

Answer

Increased customer loyalty

Answer

Increased sales volume

Question 7

How do sales promotions help businesses attract new customers and boost sales?

Accepted Answer

They offer incentives and discounts to encourage purchases and generate leads.

Answer

They focus mainly on building brand awareness, not directly on sales or leads.

Answer

Their primary goal is to build customer loyalty, not drive immediate sales.

Question 8

What is the primary purpose of implementing sales promotions?

Accepted Answer

To incentivize purchases and encourage trial of products or services

Answer

To solely build brand awareness

Answer

To generate leads solely

Question 9

Which of the following sales promotion types involves offering a reduced price on a product or service?

Accepted Answer

Price promotion

Answer

Loyalty promotion

Answer

Consumer contest

Answer

Sampling promotion

Question 10

When developing an effective sales promotion campaign, which step should be prioritized?

Accepted Answer

Establishing clear objectives

Answer

Allocating an extensive budget

Answer

Creating an overly complex campaign

Answer

Postponing results tracking until the end of the campaign

Question 11

Which metric is commonly used to measure the effectiveness of a sales promotion campaign?

Accepted Answer

Return on investment (ROI)

Answer

Customer satisfaction

Answer

Social media engagement

Answer

Number of leads generated

Question 12

In sales promotion, which ethical issue requires careful consideration?

Accepted Answer

Using deceptive or misleading claims

Answer

Utilizing advanced marketing techniques

Answer

Employing humor to promote products

Answer

Offering promotions exclusively to select customers

Question 13

Which trend is becoming increasingly prevalent in sales promotion?

Accepted Answer

Leveraging digital and mobile marketing channels

Answer

Focus on long-term customer relationships

Answer

Decline in the use of traditional promotions

Question 14

Which element is crucial for an effective sales promotion strategy?

Accepted Answer

Integration with other marketing channels

Answer

Sole reliance on price discounts

Answer

Isolation from other promotions

Answer

Ignoring customer feedback

Question 15

What is a primary benefit of implementing loyalty promotions?

Accepted Answer

Encouraging repeat purchases

Answer

Attracting new customers

Answer

Generating viral buzz

Question 16

Which of the following is NOT considered a type of sales promotion?

Accepted Answer

Market research

Answer

Coupons

Answer

Loyalty programs

Question 17

What is the primary objective of a sales promotion campaign?

Accepted Answer

To increase sales volume or revenue

Answer

To enhance customer loyalty

Answer

To improve brand awareness

Answer

To generate leads

Question 18

Define a rebate in sales promotion.

Accepted Answer

A partial refund on a purchase after proof of purchase has been provided

Answer

A discount applied at the time of purchase

Answer

A lottery or contest where participants can win prizes

Answer

A free product or service given with a purchase

Question 19

Which advantage is commonly associated with using sales promotions?

Accepted Answer

Increased brand awareness and visibility

Answer

Reduced production expenses

Answer

Enhanced customer service

Answer

Improved employee morale

Question 20

How do coupons differ from rebates?

Accepted Answer

Coupons provide an immediate discount at the point of purchase, while rebates are redeemed later upon submitting proof of purchase.

Answer

Coupons offer a higher percentage discount than rebates.

Answer

Rebates are only available for online transactions.

Question 21

Which metric is used to evaluate the effectiveness of a sales promotion campaign?

Accepted Answer

Sales lift, which measures the increase in sales volume directly attributed to the promotion

Answer

Website traffic

Answer

Customer satisfaction ratings

Answer

Social media engagement

Question 22

What is the primary purpose of a point-of-purchase display in sales promotion?

Accepted Answer

To stimulate impulse purchases and encourage customers to add items to their baskets

Answer

To provide detailed product specifications and descriptions

Answer

To enhance brand visibility and recognition

Answer

To capture leads and gather customer information

Question 23

Identify a potential challenge associated with implementing sales promotions.

Accepted Answer

Reduced profit margins due to discounts and rebates

Answer

Increased customer demands and expectations

Answer

Damage to brand reputation

Question 24

Which of the following is the primary goal of sales promotion?

Accepted Answer

To stimulate immediate or short-term increase in sales volume

Answer

To increase market share

Answer

To build long-term customer loyalty

Answer

To improve brand image

Question 25

Which of the following is a crucial element for an effective sales promotion campaign?

Accepted Answer

Clear and concise communication of the offer to the target audience

Answer

Running the promotion for an extended duration

Answer

Limiting advertising support to minimize costs

Answer

Utilizing a wide range of promotion channels

Question 26

Which metric is commonly used to measure the success of a sales promotion campaign?

Accepted Answer

Sales volume lift

Answer

Market penetration

Answer

Customer feedback

Answer

Brand recognition

Question 27

Which type of sales promotion is specifically designed to encourage repeat purchases from existing customers?

Accepted Answer

Loyalty program

Answer

Rebates

Answer

Free sample

Answer

Contest

Question 28

What is a potential benefit of partnering with a specialized sales promotion agency?

Accepted Answer

Access to industry expertise and resources

Answer

Elimination of time commitment

Answer

Reduced expenses

Answer

Increased control over the campaign's execution

Question 29

Which type of sales promotion is most effective in driving immediate purchases at the point of sale?

Accepted Answer

Point-of-purchase display

Answer

Online sweepstakes

Answer

Social media contest

Answer

Direct mail coupon

Question 30

Which trend is currently shaping the landscape of sales promotion?

Accepted Answer

Integration of digital and social media channels

Answer

Increased reliance on traditional advertising methods

Answer

Decline in consumer-oriented promotions

Answer

Elimination of point-of-sale displays

Question 31

What is the primary purpose of sales promotion?

Accepted Answer

To increase sales of products or services by encouraging customer purchases and trial.

Answer

To increase brand awareness and create positive associations

Answer

To build long-term customer relationships

Question 32

What type of sales promotion involves offering a temporary reduction in the price of a product?

Accepted Answer

Price-off promotion

Answer

Loyalty program

Answer

Sampling promotion

Answer

Contest promotion

Question 33

Which of the following is a key element of a successful sales promotion campaign?

Accepted Answer

Clearly defined goals and objectives that align with the overall marketing strategy

Answer

Celebrity endorsement

Answer

Extensive use of social media

Answer

High production costs

Question 34

What metric can be used to measure the effectiveness of a sales promotion campaign?

Accepted Answer

Return on investment (ROI)

Answer

Website traffic generated

Answer

Number of social media followers gained

Answer

Customer satisfaction ratings

Question 35

Which type of sales promotion is best suited for introducing a new product to the market?

Accepted Answer

Sampling promotion

Answer

Price-off promotion

Answer

Loyalty program

Question 36

What is the main purpose of a loyalty program?

Accepted Answer

To reward repeat purchases, foster customer retention, and build long-term relationships

Answer

To increase purchase frequency

Answer

To attract new customers

Question 37

What is the difference between a price-off promotion and a rebate?

Accepted Answer

A price-off promotion reduces the price at the point of purchase, while a rebate involves a refund after purchase and typically requires a specific action (e.g., submitting a receipt).

Answer

Price-off promotions are only offered online, while rebates can be offered in-store and online

Question 38

Which of the following is a benefit of using contests and sweepstakes in sales promotions?

Accepted Answer

Generating excitement and buzz around a product or brand, attracting new customers, and collecting valuable customer data

Answer

Ensuring that all participants receive a prize

Answer

Providing valuable customer insights

Question 39

What role does market research play in sales promotion?

Accepted Answer

Helps identify target customers, understand their needs, develop effective promotions, and evaluate their impact

Answer

Is only necessary for high-budget sales campaigns

Answer

Can replace the need for testing and evaluation

Question 40

Which type of sales promotion typically involves offering a temporary discount on the purchase of a specific product?

Accepted Answer

Price Deal

Answer

Sweepstakes

Answer

Loyalty programs

Answer

Contests

Question 41

What is the primary purpose of measuring the success of a sales promotion?

Accepted Answer

To determine its effectiveness and identify areas for improvement

Answer

To justify marketing expenditure

Answer

To satisfy reporting requirements

Question 42

Which of the following is **not** a benefit of using coupons as a sales promotion tool?

Accepted Answer

They generate a lot of buzz

Answer

They can be tailored to specific customer segments

Answer

They are easy to implement

Question 43

What is the key difference between a contest and a sweepstakes?

Accepted Answer

Contests require active participation, while sweepstakes are based on chance only.

Answer

Contests offer larger prizes

Answer

Sweepstakes are more popular

Question 44

Which of the following is **not** a type of loyalty program?

Accepted Answer

Subscription box

Answer

Points system

Answer

Punch card

Answer

Tiered membership

Question 45

What is the primary function of a point-of-sale display in sales promotion?

Accepted Answer

To attract customers' attention and encourage impulse purchases

Answer

To provide detailed product information

Answer

To promote a specific brand

Question 46

Which of the following is the most effective way to follow up with potential customers after a sales promotion?

Accepted Answer

Send a personalized email thanking them for their interest and offering additional information

Answer

Ignore them unless they reach out first

Answer

Call them immediately to try to close the deal

Question 47

Which of the following is NOT a purpose of sales promotion?

Accepted Answer

To hinder brand awareness

Answer

To bolster demand for a product or service

Answer

To nurture customer loyalty

Answer

To liquidate inventory

Question 48

Which type of sales promotion offers a price reduction on a product or service?

Accepted Answer

Price promotion

Answer

Loyalty program

Answer

Public relations

Answer

Experiential marketing

Question 49

Which type of sales promotion is most effective for enhancing brand recognition?

Accepted Answer

Public relations

Answer

Event marketing

Answer

Price promotion

Answer

Loyalty program

Question 50

Which type of sales promotion is typically used to introduce new products or services?

Accepted Answer

Sampling

Answer

Couponing

Answer

Loyalty programs

Answer

Rebating

Question 51

Which of the following is NOT a guiding principle of effective sales promotion?

Accepted Answer

Deceiving customers

Answer

Targeting the intended audience

Answer

Coordinating with other marketing efforts

Answer

Establishing clear goals