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True or False
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1
A limited-time offer reducing the wholesale price with no restrictions is called a performance allowance.
A)True
B)False
2
A price reduction offer in exchange for agreeing to feature the manufacturer's brand in the retail's advertising is called an off-invoice allowance.
A)True
B)False
3
A high-value premium offered in exchange for the purchase of a special product assortment is called an off-shelf display allowance.
A)True
B)False
4
Specially designed shipping cartons that when opened become display units are called shipper displays.
A)True
B)False
5
Many manufacturers use cooperative advertising allowances, a percentage of the value of what retailers' buy set aside in a "co-op" fund which the retailer can use for advertising.
A)True
B)False
6
A dealer contest involves buying back current stock of a brand and replacing it with new products that can be used in contests.
A)True
B)False
7
The first strategic trade promotion decision a manager will have to make is what percentage of sales volume to sell on promotion.
A)True
B)False
8
Integrated push and pull strategies coordinate timing and themes.
A)True
B)False
9
The Robinson-Patman Act requires sales promotions to be offered on an equal basis regardless of the strength of the marketing channel relationship.
A)True
B)False
10
Customized joint efforts by manufacturers and retailers to establish a mutually satisfying balance between price and image in local promotion is called co-membership.
A)True
B)False
11
Trade promotions are an integrated form of channel marketing.
A)True
B)False
12
Local companies that buy an inventory of products from manufacturers are called dealers.
A)True
B)False
13
For B2C manufacturers the key distribution relationship is with customers.
A)True
B)False
14
The majority of trade-promotion dollars are spent on retailers because they control access to manufacturers.
A)True
B)False
15
The first step in developing trade promotion is to persuade the retailer to authorize a brand.
A)True
B)False
16
The first step in getting authorization of a new brand is to use advertising and publicity to create awareness among channel members.
A)True
B)False
17
When a channel member wants to get their product in a retail store they will have to gain authorization from the retail buyer.
A)True
B)False
18
Retailers want to know to what extent a manufacturer is investing in their product meaning what manufacturer is committed to doing to create awareness and motivate buyers.
A)True
B)False
19
A one-time payment to a manufacturer by the retailer to get the retailer to stock a product is called a slotting fee.
A)True
B)False
20
When products already have high consumer awareness, manufacturers gain easier access to retail stores.
A)True
B)False
21
In recent years trade promotion spending has decreased as a percent of total promotional spending.
A)True
B)False
22
What members of the distribution channel fear most is buying products that they cannot resell.
A)True
B)False
23
Popular national brands are often used as loss leaders.
A)True
B)False





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