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For example, marketers who are targeting loyal users of their product don’t want to change behavior. Quiz

12 questions economics Grades 9-12

The question sheet

Reveal any answer as you study
  1. For loyal customers, marketers primarily want to:

    • Break loyalty to their brand
    • Switch them to competitors
    • Lower prices to keep them
    • Reinforce behavior and increase use
    Reveal answer

    Answer: Reinforce behavior and increase use

    Source evidence

    PDF page 496: Instead, they want to reinforce existing behavior or increase product usage. Frequent-buyer programs that reward consumers for repeat purchases can be effective in strengthening brand loyalty. Other types of promotions are more effective with customers prone to brand switching or with those who are loyal to a competitor’s product. Cents-off coupons, free samples, or an eye-catching display in a store will often entice shoppers to try a different brand. The use of sales promotion for services products depends on the type of services. Consumer services, such as

    PDF page 497: Loyal customers: People Reinforce behavior, who buy your product increase most or all of the time consumption, change purchase timing

  2. Which promotion works best to reinforce brand loyalty?

    • Cents-off coupons
    • Free samples
    • Frequent-buyer programs
    • Eye-catching displays
    Reveal answer

    Answer: Frequent-buyer programs

    Source evidence

    PDF page 496: Instead, they want to reinforce existing behavior or increase product usage. Frequent-buyer programs that reward consumers for repeat purchases can be effective in strengthening brand loyalty. Other types of promotions are more effective with customers prone to brand switching or with those who are loyal to a competitor’s product. Cents-off coupons, free samples, or an eye-catching display in a store will often entice shoppers to try a different brand. The use of sales promotion for services products depends on the type of services. Consumer services, such as

  3. What is the goal of sales promotion aimed at a competitor's customers?

    • Reinforce existing behavior
    • Change purchase timing
    • Increase consumption
    • Break loyalty and persuade to switch
    Reveal answer

    Answer: Break loyalty and persuade to switch

    Source evidence

    PDF page 497: Break loyalty, Competitor’s customers: persuade to switch to People who buy a your brand competitor’s product most or all of the time

  4. For price buyers, marketers should appeal with:

    • Low prices or added value
    • Contests and sweepstakes
    • Product placement
    • Frequent-buyer cards
    Reveal answer

    Answer: Low prices or added value

    Source evidence

    PDF page 497: Appeal with low Price buyers: People who prices or supply consistently buy the added value that least expensive brand makes price less important

  5. Which type of service relies heavily on sales promotions?

    • Professional services
    • Legal services
    • Medical services
    • Consumer services
    Reveal answer

    Answer: Consumer services

    Source evidence

    PDF page 496: Instead, they want to reinforce existing behavior or increase product usage. Frequent-buyer programs that reward consumers for repeat purchases can be effective in strengthening brand loyalty. Other types of promotions are more effective with customers prone to brand switching or with those who are loyal to a competitor’s product. Cents-off coupons, free samples, or an eye-catching display in a store will often entice shoppers to try a different brand. The use of sales promotion for services products depends on the type of services. Consumer services, such as

    PDF page 497: hairstyling, rely heavily on sales promotions (such as providing half off the price of a haircut for senior citizens on Mondays). Professional services, however, use very little sales promotion. Doctors, for example, do not often use coupons for performing an appendectomy, for example. In fact, service product companies must be

  6. Why do professional services use very little sales promotion?

    • Customers dislike coupons
    • It is too expensive
    • It is illegal
    • It can lower the firm's credibility
    Reveal answer

    Answer: It can lower the firm's credibility

    Source evidence

    PDF page 497: Product placement is paid inclusion of brands in mass media programming. This includes movies, TV, books, music videos, and video games. So when you see Ford vehicles in the latest James Bond movie or Tom Hanks careful not to utilize too many sales-promotion tactics because they can lower the credibility of the firm. Attorneys do not have a sale on providing services for divorce proceedings, for example.

  7. Which are two growing areas of sales promotion?

    • Email and telemarketing
    • TV and radio ads
    • Billboards and flyers
    • Couponing and product placement
    Reveal answer

    Answer: Couponing and product placement

    Source evidence

    PDF page 497: Two growing areas of sales promotion are couponing and product placement. American consumers receive

  8. How much in coupons do American consumers receive each year?

    • About $3 billion
    • Over $321 billion
    • Over $11 billion
    • About $6 billion
    Reveal answer

    Answer: Over $321 billion

    Source evidence

    PDF page 497: over $321 billion worth of coupons each year and redeem about $3 billion. Almost 85 percent of all

  9. About how much in coupons do Americans redeem each year?

    • $321 billion
    • $3 billion
    • $6 billion
    • $11 billion
    Reveal answer

    Answer: $3 billion

    Source evidence

    PDF page 497: over $321 billion worth of coupons each year and redeem about $3 billion. Almost 85 percent of all

  10. Coupons are used most often for what type of shopping?

    • Electronics shopping
    • Clothing shopping
    • Grocery shopping
    • Online shopping
    Reveal answer

    Answer: Grocery shopping

    Source evidence

    PDF page 497: Americans redeem coupons. Sunday newspaper supplements remain the number one source, but there has been explosive growth of online or consumer-printed coupons. General Mills, Kimberly-Clark, and General Electric like online coupons because they have a higher redemption rate. Coupons are used most often for grocery shopping. Do they save you money? One study found that people using coupons at the grocery store

  11. One study found grocery coupon users spent how much more?

    • Three percent more
    • Fifteen percent more
    • Eight percent more
    • Fifty percent more
    Reveal answer

    Answer: Eight percent more

    Source evidence

    PDF page 497: Americans redeem coupons. Sunday newspaper supplements remain the number one source, but there has been explosive growth of online or consumer-printed coupons. General Mills, Kimberly-Clark, and General Electric like online coupons because they have a higher redemption rate. Coupons are used most often for grocery shopping. Do they save you money? One study found that people using coupons at the grocery store

    PDF page 497: spent eight percent more than those who didn’t.

  12. Product placement is best defined as:

    • Free samples given in stores
    • Paid inclusion of brands in media
    • A frequent-buyer program
    • A cents-off coupon offer
    Reveal answer

    Answer: Paid inclusion of brands in media

    Source evidence

    PDF page 497: Product placement is paid inclusion of brands in mass media programming. This includes movies, TV, books, music videos, and video games. So when you see Ford vehicles in the latest James Bond movie or Tom Hanks careful not to utilize too many sales-promotion tactics because they can lower the credibility of the firm. Attorneys do not have a sale on providing services for divorce proceedings, for example.

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