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True or False
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1
Loyalty programs work best when brands have high fixed costs and low variable costs.
A)True
B)False
2
The main strength of customer loyalty programs is identifying prospects.
A)True
B)False
3
One of the strengths of sales promotions is that competitors will be forced to match promotions.
A)True
B)False
4
Excessive sales promotion may hurt profits.
A)True
B)False
5
A package is an extrinsic brand message.
A)True
B)False
6
One of the strengths of sales a promotion is they are an effective way to build brand equity.
A)True
B)False
7
Marketers know sampling is one of the most costly sales promotion techniques.
A)True
B)False
8
Loyalty programs are designed to minimize defections.
A)True
B)False
9
Failure to take advantage of a rebate is called slippage.
A)True
B)False
10
Combination offers are often used to introduce new, related products.
A)True
B)False
11
Reduced or extended credit is a form of cross-promotion.
A)True
B)False
12
Free standing inserts are newspaper supplements containing ads.
A)True
B)False
13
Free is the most powerful sales-promotion word a company can use.
A)True
B)False
14
The two types of premiums most often used by marketers are push and pull products.
A)True
B)False
15
Cross promotions increase the costs for both parties.
A)True
B)False
16
Premiums are often used to encourage sampling or testing.
A)True
B)False
17
Product sampling is the most widely used sales promotion tool.
A)True
B)False
18
When considering choices of premiums marketers want premiums that reinforce the product's brand image.
A)True
B)False
19
Games can be used to increase customer visits.
A)True
B)False
20
Sweepstakes and contests are often used to breakeven.
A)True
B)False
21
The internet has long been used to deliver sales promotion offers.
A)True
B)False





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