Question 1

Which of the following is a problem with coupons distributed in magazines and newspaper (noninsert)?

Accepted Answer

Coupons distributed in magazines and newspapers often face issues such as low redemption rates because they may not reach the intended audience effectively or at the right time. They are also susceptible to misredemption, where they might be used incorrectly or fraudulently. Additionally, these types of coupons do not generate much trade interest as they might not be as targeted or compelling as other marketing strategies, leading to less enthusiasm from retailers or manufacturers.

Question 2

Research indicates that there is some evidence that FSIs also perform a(n)_____ function.

Accepted Answer

The answer of Research indicates that there is some evidence...

Question 3

A manufacturer that is distributing coupons via the third screen is distributing them how?

Accepted Answer

Distributing coupons via the third screen means distributing them through mobile phones, such as smartphones and tablets.

Question 4

Mail-delivered coupons are generally used for _____.

Accepted Answer

Mail-delivered coupons are often used to introduce new or improved products to consumers. This promotional tactic can help drive initial sales and create awareness for the new or improved product.

Question 5

What method of coupon distribution has the lowest redemption rate?

Accepted Answer

Magazine coupons on page have the lowest redemption rate compared to other methods of distribution as they require customers to cut out the coupon and bring it into the store, which may lead to forgetfulness or inconvenience. Mobile phone coupons and internet coupons have higher redemption rates as they can be easily accessed and redeemed at the time of purchase. Freestanding inserts and direct mail coupons also have higher redemption rates as they provide a physical reminder and incentive to visit the store.

Question 6

Which of the following is FALSE regarding mail-delivered coupons?

Accepted Answer

Direct-mailed coupons are not the least expensive coupon distribution method; in fact, they are often more expensive due to printing and mailing costs compared to other distribution methods like digital or newspaper coupons.

Question 7

Anthony picked up a package of paper plates and noticed that there was a coupon stuck onto the package that stated,"Save 50 cents now!" When he went to the checkout,the cashier removed the coupon and gave him the 50 cent discount.Which type of coupon did Anthony receive?

Accepted Answer

The answer of Anthony picked up a package of paper...

Question 8

Although the instant coupon is a minor form of couponing,it has emerged in recent years as an alternative to _____.

Accepted Answer

The instant coupon is a form of couponing that provides a discounted price on a product at the time of purchase, rather than requiring customers to redeem a separate coupon at a later time. It has emerged as an alternative to price-off deals, which also provide a discount on a product but require customers to redeem a physical or digital coupon. Sampling, freestanding inserts, premiums, and contests are not related to the instant coupon or couponing in general in the same way as price-off deals.

Question 9

Trina purchased a new brand of high-fiber cereal and noticed that there was a coupon printed on the back of the package worth 2 dollars off of her next purchase of this brand.What type of coupon is this?

Accepted Answer

This is an on-pack coupon, which is a coupon that is printed on the packaging of a product and can be redeemed on a future purchase.

Question 10

Sun Cosmetics decides to promote After-Sun Aloe by including an on-pack coupon on that brand and on one of its other products,SunBreak.Sun Cosmetics is using crossruffing to stimulate _____ and the on-pack coupon to stimulate _____.

Accepted Answer

Cross-ruffing is used to stimulate trial purchasing by encouraging customers to try a new product through a promotion linked with another product. The on-pack coupon is aimed at stimulating repeat purchasing by offering a discount or incentive to buy the product again.

Question 11

Kyle was in the cereal aisle of a grocery store and noticed a red device mounted on the shelf that allowed him to get a coupon for a specific brand of cereal.Which type of point-of-purchase coupon is this?

Accepted Answer

A shelf-delivered coupon is directly provided to the consumer at the point of purchase, typically through a device mounted on the shelf, as described in the scenario.

Question 12

Which of the following statements is FALSE concerning in- and on-pack coupons?

Accepted Answer

In-pack and on-pack coupons typically have higher redemption rates compared to other coupon distribution methods such as newspaper or direct mail coupons. This is because they are already in the hands of the consumer when they make the purchase, making it easier for them to redeem the coupon.

Question 13

Which type of coupons achieve the highest household penetration?

Accepted Answer

Mail-delivered coupons achieve the highest household penetration because they are directly sent to the consumer's home, making them more likely to be seen and used compared to other types of coupons that require the consumer to find them through other means.

Question 14

A package coupon has _____ because an initial purchase may stimulate another purchase.

Accepted Answer

A bounce-back value is a coupon that offers a discount or incentive for a future purchase within a certain period of time. It is often used to entice customers to return to the store or website and make another purchase, thereby increasing the likelihood of repeat business.

Question 15

Which type of couponing possesses considerable potential for fraud because consumers can possibly manipulate the face value or receive multiple copies of a coupon?

Accepted Answer

Online coupons have a higher potential for fraud because they can be easily duplicated, manipulated, or distributed without authorization, unlike physical coupons which are harder to counterfeit.

Question 16

What usually accounts for the highest amount in the full cost of a coupon?

Accepted Answer

The face value of a coupon usually accounts for the highest amount in the full cost of a coupon because it directly reduces the price of the product or service for the consumer, representing the largest financial component of the coupon's cost to the issuer.

Question 17

Which type of couponing allows a manufacturer to deliver a coupon to a consumer that purchases a competitor's brand?

Accepted Answer

Scanner-delivered coupons are distributed at the point of sale, based on the products the consumer is purchasing. If a consumer buys a competitor's brand, the system can issue a coupon for the manufacturer's product as an incentive to try it next time.

Question 18

How is the new check-out coupon system offered by 12 Digit Marketing unique?

Accepted Answer

The answer of How is the new check-out coupon system...

Question 19

Researchers have found that higher-value coupons signal higher prices to consumers.This is especially true when consumers are _____.

Accepted Answer

Higher-value coupons can signal higher prices especially to consumers who are unfamiliar with a brand, as they may interpret the need for a high-value coupon as an indication that the product is generally more expensive.

Question 20

Creamy's mayonnaise,a regional brand,just recently began using Nielsen Catalina's Checkout Coupon scanner-delivered coupon program.Which of the following is true regarding this delivery mode in this instance?

Accepted Answer

Nielsen Catalina's Checkout Coupon program targets consumers based on their purchase history. If a consumer buys a competitive brand like Kraft's Mayonnaise, they can automatically receive a coupon for Creamy's mayonnaise at the checkout counter to encourage them to try Creamy's on a future purchase. This strategy is used to attract consumers of competing brands by offering them incentives to switch brands.

Quiz 19: Consumer Sales Promotion: Sampling and Couponing

Which of the following is a problem with coupons distributed in magazines and newspaper (noninsert) ?

Research indicates that there is some evidence that FSIs also perform a(n) _____ function.