Global Marketing, 6e (Keegan/Green)
Chapter 14 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication
1) Sweepstakes, rebates, and other promotional tools may require consumers to divulge personal information that companies can add to their databases.
Answer: TRUE
Diff: 2 Page Ref: 427
AACSB: Reflective Thinking
2) Sales promotion can be defined as a short-term, paid marketing communication program that adds tangible value to a product.
Answer: TRUE
Diff: 1 Page Ref: 427
3) Sales promotion programs can be designed to target consumers as well as distributors and retailers.
Answer: TRUE
Diff: 2 Page Ref: 427
AACSB: Reflective Thinking
4) A marketer of fine French cognac offers a fancy cigar ashtray to persons who correctly solve a crossword puzzle and mail it in. This is an example of a trade promotion.
Answer: FALSE
Diff: 2 Page Ref: 427
AACSB: Reflective Thinking
5) The Coca-Cola Company recently offered each McDonald's UK franchisees several hundreds of gallons of free soft drink syrup if they agreed to serve only Coca-Cola beverages. This action is an example of a trade promotion.
Answer: TRUE
Diff: 2 Page Ref: 427
AACSB: Reflective Thinking
6) Overall, sales promotion tools, such as coupons, are used less frequently as consumer products companies increase budget allocations for media advertising.
Answer: FALSE
Diff: 2 Page Ref: 427-428
AACSB: Reflective Thinking
7) Kashani and Quelch note that mergers and acquisitions have resulted in increased concentration in the retailing industry. One implication of this trend is increased reliance on centralized control of promotional program formulation.
Answer: TRUE
Diff: 3 Page Ref: 428-429
AACSB: Reflective Thinking
8) In a low-income country, free samples are likely to be a more effective promotional tool than coupons or on-pack premiums.
Answer: TRUE
Diff: 2 Page Ref: 429
AACSB: Reflective Thinking
9) When designing sales promotion programs, marketers should keep in mind that the most fundamental thing consumers want to do is try before they buy.
Answer: TRUE
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
10) In 2002 Unilever hired attractive female models to offer samples of Axe deodorant body spray to male shoppers at Wal-Mart and Costco stores in the United States.
Answer: TRUE
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
11) Japanese consumers are avid users of yen-off coupons.
Answer: FALSE
Diff: 2 Page Ref: 432-433
AACSB: Reflective Thinking
12) In China, consumers are reluctant to buy full-sized packages of unfamiliar imported products. In such a marketing environment, sampling is an appropriate promotional strategy.
Answer: TRUE
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
13) As a sales promotion technique, couponing is equally popular in Malaysia and the United States.
Answer: FALSE
Diff: 2 Page Ref: 431-432
AACSB: Reflective Thinking
14) Compared with other marketing promotion techniques, sampling is more likely to result in actual product trial.
Answer: TRUE
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
15) "Point of use" product sampling is gaining in popularity among marketers.
Answer: TRUE
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
16) Taiwan, Thailand, and Malaysia are regarded as collectivist according to Hofstede's social values. It was found that positive attitude of family members and society influence individual's positive attitude toward coupons and coupon usage.
Answer: TRUE
Diff: 2 Page Ref: 432-433
AACSB: Reflective Thinking
17) When MCI Communications first entered Latin America, it did so by utilizing low-cost local sales personnel.
Answer: TRUE
Diff: 2 Page Ref: 433-434
AACSB: Reflective Thinking
18) When MCI Communications first entered Latin America, it utilized expatriate Americans despite the high cost of doing so.
Answer: FALSE
Diff: 2 Page Ref: 433-434
AACSB: Reflective Thinking
19) Relationship marketing – i.e., an emphasis on developing long-term relationships with customers – has been embraced by many U.S. companies.
Answer: TRUE
Diff: 2 Page Ref: 435
AACSB: Reflective Thinking
20) The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.
Answer: FALSE
Diff: 2 Page Ref: 435-436
AACSB: Reflective Thinking
21) Building rapport and trust with customers is part of a sales representative's relationship strategy.
Answer: TRUE
Diff: 2 Page Ref: 435-436
AACSB: Analytic Skills
22) A commitment to the marketing concept and a desire to serve as a problem solver when helping customers is part of a sales representative's personal selling philosophy.
Answer: TRUE
Diff: 2 Page Ref: 435-436
AACSB: Reflective Thinking
23) In personal selling, the goal of negotiation should be to ensure that both the customer and the salesperson come away from the presentation as winners.
Answer: TRUE
Diff: 2 Page Ref: 435-436
AACSB: Reflective Thinking
24) The final step in the 6-step sales presentation plan is closing the sale.
Answer: FALSE
Diff: 2 Page Ref: 436-437
AACSB: Reflective Thinking
25) The most crucial element of the last step of the sales presentation plan is to completely understand the decision-making process.
Answer: TRUE
Diff: 2 Page Ref: 437
26) Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.
Answer: TRUE
Diff: 2 Page Ref: 440-441
AACSB: Multicultural and Diversity
27) In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.
Answer: TRUE
Diff: 3 Page Ref: 440-441
AACSB: Multicultural and Diversity
28) A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.
Answer: TRUE
Diff: 3 Page Ref: 440-441
AACSB: Multicultural and Diversity
29) "High cost" and "high turnover" are two disadvantages to using an expatriate sales force.
Answer: TRUE
Diff: 3 Page Ref: 440-441
AACSB: Multicultural and Diversity
30) Sales agents are more expensive than full-time, in-country national sales representatives.
Answer: FALSE
Diff: 2 Page Ref: 442
AACSB: Reflective Thinking
31) Generally speaking, consumers view direct marketing as entailing a higher level of risk than traditional mass marketing.
Answer: TRUE
Diff: 2 Page Ref: 443
AACSB: Reflective Thinking
32) Direct marketing does not work well as a global marketing tool because it is not well suited to the task of addressing cultural differences among consumers.
Answer: FALSE
Diff: 1 Page Ref: 443-444
AACSB: Reflective Thinking
33) Germany leads the world in terms of amount of direct mail received per capita.
Answer: TRUE
Diff: 2 Page Ref: 444
AACSB: Reflective Thinking
34) Following the economic crisis in Asia, many companies in that region have turned to direct mail in order to save costs.
Answer: TRUE
Diff: 2 Page Ref: 444
AACSB: Reflective Thinking
35) Nestlé uses direct mail in Asia for its Friskies brand cat food.
Answer: TRUE
Diff: 1 Page Ref: 445
AACSB: Reflective Thinking
36) Industry observers expect the popularity of home shopping to decrease during next few years as interactive television technology is introduced into more households.
Answer: FALSE
Diff: 2 Page Ref: 447
AACSB: Use of IT
37) France is leading in the rankings showing expenditures for outdoor advertising as percentage of total ad spending.
Answer: TRUE
Diff: 2 Page Ref: 448
AACSB: Reflective Thinking
38) In Indonesia ads cannot show cigarettes or people in the act of smoking.
Answer: TRUE
Diff: 2 Page Ref: 449
39) Sometimes referred to as "branded entertainment," the effective integration of products and brands with entertainment can be seen on the popular TV hit American Idol.
Answer: TRUE
Diff: 2 Page Ref: 452
AACSB: Reflective Thinking
40) The more an audience suspiciously distrusts the content of promotional programs or suspect a hidden agenda, the less likely that they will be responsive to the message.
Answer: TRUE
Diff: 2 Page Ref: 453
AACSB: Reflective Thinking
41) A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer?
A) price promotion
B) non-price promotion
C) trade sales promotion
D) sweepstakes promotion
E) sampling
Answer: B
Diff: 2 Page Ref: 427-428
AACSB: Reflective Thinking
42) Which of the following is NOT an advantage of using sales promotions?
A) provides a tangible incentive to buyers
B) provides accountability to marketing managers
C) enables company to build its database
D) builds long-term brand awareness
E) develops relationship with customers
Answer: C
Diff: 2 Page Ref: 427-428
AACSB: Reflective Thinking
43) Which of the following trends is consistent with a relatively high level of headquarters involvement in sales promotions?
A) higher proportion of marketing budget allocated to sales promotion activities
B) need for managerial skills with promotion formulation and implementation
C) strong global brand
D) increased retail concentration and consolidation
E) all of the above
Answer: E
Diff: 2 Page Ref: 428-429
AACSB: Reflective Thinking
44) Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?
A) sampling
B) sweepstakes
C) couponing
D) free-standing inserts
E) personal selling
Answer: A
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
45) Coupons are not a favorite promotion tool for use in:
A) the United Kingdom.
B) Belgium.
C) the United States.
D) Italy.
E) Malaysia.
Answer: E
Diff: 2 Page Ref: 431-432
46) A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?
A) cross coupon
B) product placement coupon
C) trade promotion coupon
D) free-standing coupon
E) on-line coupon
Answer: A
Diff: 2 Page Ref: 431-432
47) Consumers in the United States redeem approximately what percentage of coupons issued each year?
A) less than 5 percent
B) 10-15 percent
C) 25-30 percent
D) 45-50 percent
E) more than 60 percent
Answer: A
Diff: 2 Page Ref: 432
AACSB: Reflective Thinking
48) Unilever hired a promotional marketing firm to pass out Lever2000 hand wipes in food courts and petting zoos. This is an example of:
A) point-of-use sampling.
B) point-of-sale sampling.
C) point-of-dirt sampling.
D) point-of-event sampling.
E) point-of-work sampling.
Answer: C
Diff: 2 Page Ref: 430
AACSB: Reflective Thinking
49) Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:
A) political risks.
B) regulatory hurdles.
C) product innovation.
D) currency fluctuations.
E) market unknowns.
Answer: C
Diff: 2 Page Ref: 434-435
AACSB: Reflective Thinking
50) Which of the following is not one of the steps in the Strategic/Consultative Selling Model?
A) develop personal selling philosophy
B) develop relationship strategy
C) develop product strategy
D) develop ethnocentric policy
E) develop customer strategy
Answer: D
Diff: 2 Page Ref: 435-439
AACSB: Reflective Thinking
51) Which of the following is not a step in the strategic/consultative selling model?
A) develop a marketing mix
B) develop a personal selling philosophy
C) develop a product strategy
D) develop a relationship strategy
E) develop a presentation strategy
Answer: A
Diff: 2 Page Ref: 435-439
AACSB: Reflective Thinking
52) Building a prospect base is typically part of which step of the strategic/consultative selling model?
A) development of a customer strategy
B) development of a personal selling philosophy
C) development of a product strategy
D) development of a relationship strategy
E) development of a presentation strategy
Answer: A
Diff: 2 Page Ref: 435-439
AACSB: Reflective Thinking
53) In the six-step presentation plan the first and last steps are respectively:
A) presentation; demonstration.
B) approach; close.
C) presentation; negotiation.
D) approach; presentation.
E) approach; servicing the sale.
Answer: E
Diff: 2 Page Ref: 437-438
AACSB: Reflective Thinking
54) A company in which an ethnocentric orientation prevails is likely to utilize primarily ______in its sales force.
A) host-country nationals
B) third-country nationals
C) expatriates
D) agents of any nationality
E) agents of host-country
Answer: C
Diff: 2 Page Ref: 440-441
55) A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?
A) selling high-tech products in developed countries
B) selling high-tech products in less-developed countries
C) selling low-tech products in developed countries
D) selling low-tech products in less-developed countries
E) none of the above
Answer: A
Diff: 3 Page Ref: 440-441
AACSB: Reflective Thinking
56) Which type of sales person is best suited to selling technologically-sophisticated products in developed countries?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) none of the above
Answer: A
Diff: 3 Page Ref: 440-442
AACSB: Reflective Thinking
57) Which of the following is an advantage of using an expatriate sales force?
A) superior product and company knowledge
B) headquarters can maintain greater control
C) those achieving success abroad gain valuable experience that can enhance promotion prospects
D) can be trained for promotion
E) all of the above are advantages
Answer: A
Diff: 2 Page Ref: 440-442
AACSB: Reflective Thinking
58) When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) agents of host-country
Answer: A
Diff: 2 Page Ref: 440-442
AACSB: Reflective Thinking
59) Assuming a company is not characterized by an ethnocentric orientation, in which global selling situation would it be most likely to utilize sales agents?
A) developed country/high tech product
B) developed country/low tech product
C) less developed country/high tech product
D) less developed country/low tech product
E) none of the above
Answer: D
Diff: 3 Page Ref: 440-442
AACSB: Reflective Thinking
60) In which global selling situation would a company be most likely to utilize host country sales agents?
A) developed country/high tech product
B) developed country/low tech product