Sales Promotion Management | MCQ with Answer
Q1. Sales Promotion is primarily designed to:
- A) Improve long-term brand loyalty
- B) Create an immediate sale
- C) Build consumer trust
- D) Promote brand goodwill
Answer: B) Create an immediate sale
Q2. Sales promotion targets which groups?
- A) Sales force and distributors only
- B) Distributors and the ultimate consumer only
- C) Only the ultimate consumer
- D) Sales force, distributors, and the ultimate consumer
Answer: D) Sales force, distributors, and the ultimate consumer
Q3. Which of the following appeals to both the mind and emotions?
- A) Sales Promotion
- B) Advertising
- C) Digital Marketing
- D) Public Relations
Answer: B) Advertising
Q4. A tool used to accelerate the selling process and maximize sales volume is:
- A) Customer feedback
- B) Sales Promotion
- C) Brand advertising
- D) Market research
Answer: B) Sales Promotion
Q5. The shift in power from manufacturers to retailers has led to:
- A) Increased brand loyalty
- B) A greater emphasis on advertising
- C) The growth of sales promotions
- D) Reduced sales volume
Answer: C) The growth of sales promotions
Q6. Which is not a reason for the increase in sales promotions?
- A) Brand proliferation
- B) Increased brand loyalty
- C) Growth of digital marketing
- D) Short-term focus
Answer: B) Increased brand loyalty
Q7. Which sales promotion tool encourages repeat purchases by rewarding customers?
- A) Coupons
- B) Rebates
- C) Loyalty programs
- D) Discounts
Answer: C) Loyalty programs
Q8. "Contest and sweepstakes" as a sales promotion strategy aims to:
- A) Encourage brand switching
- B) Stimulate short-term sales excitement
- C) Increase brand loyalty
- D) Reduce customer price sensitivity
Answer: B) Stimulate short-term sales excitement
Q9. Trade promotions are mainly aimed at:
- A) End consumers
- B) Wholesalers and retailers
- C) Social media influencers
- D) Community organizations
Answer: B) Wholesalers and retailers
Q10. Which of the following is a "Consumer-oriented promotion" type?
- A) Trade shows
- B) Dealer contests
- C) Coupons
- D) Sales training programs
Answer: C) Coupons
Q11. A "Push Strategy" in sales promotion focuses on:
- A) End consumers directly
- B) Encouraging retailers to stock a product
- C) Long-term brand loyalty
- D) Digital advertising campaigns
Answer: B) Encouraging retailers to stock a product
Q12. Sales promotions that aim at building brand benefits emphasize:
- A) Price over quality
- B) Price-based value
- C) Franchise building
- D) Trade allowances
Answer: C) Franchise building
Q13. Short-term impact and price emphasis are characteristics of:
- A) Franchise building promotions
- B) Non-franchise building promotions
- C) Consumer promotions
- D) High-involvement promotions
Answer: B) Non-franchise building promotions
Q14. Which of the following is a pro of using price discounts as a sales promotion tool?
- A) Builds excitement
- B) Encourages brand switching
- C) Reduces price sensitivity
- D) Increases brand loyalty
Answer: B) Encourages brand switching
Q15. Which of these is considered a "Trade and sales force-oriented promotion"?
- A) Sweepstakes
- B) Premiums
- C) Trade allowances
- D) Loyalty programs
Answer: C) Trade allowances
Q16. One disadvantage of coupons as a sales promotion tool is:
- A) They are costly to produce
- B) They can lead to brand loyalty
- C) They may encourage brand switching
- D) Potential for fraud
Answer: D) Potential for fraud
Q17. Which term describes the tendency of consumers to buy brands primarily on the basis of price?
- A) Brand proliferation
- B) Promotional sensitivity
- C) Brand loyalty
- D) Value-based purchasing
Answer: B) Promotional sensitivity
Q18. The type of sales promotion that offers an additional amount of a product for free is known as:
- A) Sampling
- B) Bonus packs
- C) Rebates
- D) Price-off promotions
Answer: B) Bonus packs
Q19. Which of the following is an objective of sales promotions?
- A) Increase product usage by "loading" consumers
- B) Replace poor advertising
- C) Increase brand loyalty
- D) Ensure long-term consumer engagement
Answer: A) Increase product usage by "loading" consumers
Q20. Which of the following is a major form of trade allowance?
- A) Brand loyalty allowance
- B) Slotting allowance
- C) Premium allowance
- D) Discount allowance
Answer: B) Slotting allowance
Q21. Sales promotion as an inducement tool is mainly used to:
- A) Establish a product’s luxury status
- B) Change the perceived price or value temporarily
- C) Develop long-term brand awareness
- D) Build partnerships with competitors
Answer: B) Change the perceived price or value temporarily
Q22. Sales promotions are often used as a response to:
- A) Consumer loyalty
- B) Declining brand loyalty
- C) Increased market saturation
- D) Rising advertising budgets
Answer: B) Declining brand loyalty
Q23. Which strategy is primarily used to maximize short-term sales goals?
- A) Branding
- B) Trade promotions
- C) Public relations
- D) Product development
Answer: B) Trade promotions
Q24. Which of the following has contributed to the rise in sales promotion emphasis?
- A) Consumer demand for brand transparency
- B) Declining effectiveness of mass media
- C) Increased emphasis on long-term brand image
- D) Reduced market competition
Answer: B) Declining effectiveness of mass media
Q25. A common tool to encourage wholesalers and retailers to promote a manufacturer’s products is:
- A) Sampling
- B) Point-of-purchase displays
- C) Digital advertising
- D) Press releases
Answer: B) Point-of-purchase displays
Q26. Trade shows as a promotion method are beneficial because they:
- A) Provide large discounts to consumers
- B) Build trade relationships and enhance brand image
- C) Focus on long-term customer loyalty
- D) Target only end consumers
Answer: B) Build trade relationships and enhance brand image
Q27. "Slotting allowances" refer to payments made by:
- A) Consumers to brands for loyalty programs
- B) Manufacturers to retailers for shelf space
- C) Retailers to manufacturers for advertising
- D) Brands to consumers for referrals
Answer: B) Manufacturers to retailers for shelf space
Q28. Price-off promotions are commonly used to:
- A) Encourage long-term loyalty
- B) Reduce brand equity
- C) Provide a direct incentive to consumers
- D) Strengthen brand perception
Answer: C) Provide a direct incentive to consumers
Q29. Sales promotions designed to encourage customers to buy larger quantities are called:
- A) Sampling promotions
- B) Loyalty programs
- C) Bulk discounts
- D) Event marketing
Answer: C) Bulk discounts
Q30. Digital marketing’s role in sales promotion has expanded primarily due to:
- A) Growth of mobile technology
- B) Increased demand for in-store promotions
- C) Reduced interest in online shopping
- D) Elimination of traditional marketing
Answer: A) Growth of mobile technology
Q31. Which sales promotion technique aims to enhance a consumer’s brand experience through a positive association with events?
- A) Contests
- B) Event marketing
- C) Price-offs
- D) Slotting allowances
Answer: B) Event marketing
Q32. Rebates are a sales promotion tactic primarily used to:
- A) Build brand loyalty over time
- B) Encourage consumers to buy now and claim money back later
- C) Focus on long-term customer engagement
- D) Offer free samples to new customers
Answer: B) Encourage consumers to buy now and claim money back later
Q33. A promotional strategy involving contests to engage customers is likely to:
- A) Build long-term loyalty
- B) Encourage immediate product purchases
- C) Focus on cost-saving strategies
- D) Target only middle-aged consumers
Answer: B) Encourage immediate product purchases
Q34. The increase in sales promotions has been partially due to:
- A) Increased cost of manufacturing
- B) Enhanced consumer brand loyalty
- C) A short-term focus on achieving sales goals
- D) Reduced interest in digital media
Answer: C) A short-term focus on achieving sales goals
Q35. Which type of allowance is given to retailers to encourage them to stock new products?
- A) Bill-back allowance
- B) Slotting allowance
- C) Trade rebate
- D) Volume discount
Answer: B) Slotting allowance
Q36. Trade promotions often rely on a:
- A) Pull strategy
- B) Branding strategy
- C) Push strategy
- D) Consumer loyalty model
Answer: C) Push strategy
Q37. Consumer-oriented promotions like "price-offs" focus on:
- A) Building long-term brand reputation
- B) Offering direct savings to consumers
- C) Enhancing advertising effectiveness
- D) Promoting online engagement
Answer: B) Offering direct savings to consumers
Q38. Sales promotions that appeal to "pocketbook incentives" usually aim to:
- A) Create an emotional bond
- B) Increase brand loyalty
- C) Offer immediate value to consumers
- D) Enhance brand image
Answer: C) Offer immediate value to consumers
Q39. One of the main cons of loyalty programs is:
- A) Cost of administration
- B) They do not encourage repeat purchase
- C) Legal issues
- D) Lack of excitement
Answer: A) Cost of administration
Q40. Point-of-purchase displays are most effective because they:
- A) Appeal to consumers directly at the place of sale
- B) Offer consumers rebates
- C) Promote online-only discounts
- D) Encourage brand partnerships
Answer: A) Appeal to consumers directly at the place of sale
Q41. Dealer contests are an example of:
- A) Consumer-oriented promotion
- B) Trade-oriented promotion
- C) Digital-only promotion
- D) Premium-only promotion
Answer: B) Trade-oriented promotion
Q42. Sampling as a promotional strategy is beneficial because it:
- A) Encourages bulk purchases
- B) Reduces consumer risk in trying a new product
- C) Provides long-term brand engagement
- D) Is inexpensive to execute
Answer: B) Reduces consumer risk in trying a new product
Q43. Coupons can lead to:
- A) Reduced brand perception
- B) Increased brand loyalty
- C) Price sensitivity among consumers
- D) Higher retail prices
Answer: C) Price sensitivity among consumers
Q44. Which promotional tactic is especially effective at building goodwill?
- A) Discounts
- B) Premiums
- C) Rebates
- D) Trade shows
Answer: B) Premiums
Q45. Slotting allowances are generally used in:
- A) Consumer loyalty programs
- B) Retail shelf management
- C) Digital marketing
- D) Online branding
Answer: B) Retail shelf management
Q46. Which is a disadvantage of using trade shows as a promotional tool?
- A) High brand exposure
- B) Difficult to measure ROI
- C) Attracts trade relationships
- D) Builds brand awareness
Answer: B) Difficult to measure ROI
Q47. Rebates are mainly aimed at:
- A) Encouraging consumers to pay full price
- B) Offering future purchase discounts
- C) Immediate price savings
- D) Delayed customer savings
Answer: D) Delayed customer savings
Q48. An increase in promotional sensitivity among consumers means they:
- A) Are more likely to wait for promotions before buying
- B) Ignore sales promotions entirely
- C) Focus only on digital media
- D) Have reduced brand loyalty
Answer: A) Are more likely to wait for promotions before buying
Q49. An example of "franchise-building promotion" is:
- A) Rebates
- B) Brand advertising
- C) Coupons
- D) Loyalty programs
Answer: D) Loyalty programs
Q50. Sampling promotions are useful for:
- A) Long-term customer retention
- B) Immediate brand loyalty
- C) Introducing new products to consumers
- D) Increasing advertising budgets
Answer: C) Introducing new products to consumers
Q51. Which of the following is primarily a consumer-oriented sales promotion?
- A) Dealer contests
- B) Slotting fees
- C) Coupons
- D) Trade allowances
Answer: C) Coupons
Q52. The primary objective of a trade-oriented promotion is to:
- A) Influence the final consumer's purchase decision
- B) Increase the retailer’s or distributor’s interest in the product
- C) Generate online engagement
- D) Promote seasonal sales
Answer: B) Increase the retailer’s or distributor’s interest in the product
Q53. Which promotional tool involves providing a free sample of a product to encourage trial use?
- A) Sweepstakes
- B) Sampling
- C) Price discount
- D) BOGO (Buy One Get One)
Answer: B) Sampling
Q54. A rebate is an example of a promotion that:
- A) Provides immediate discounts at purchase
- B) Offers a delayed monetary incentive after purchase
- C) Focuses on building brand image
- D) Is given only to retailers
Answer: B) Offers a delayed monetary incentive after purchase
Q55. Which promotion strategy involves giving customers something extra, like a gift or premium, with a purchase?
- A) Direct discount
- B) Loyalty points
- C) Premium promotion
- D) Digital coupons
Answer: C) Premium promotion
Q56. Trade shows are valuable in sales promotion because they allow businesses to:
- A) Collect direct customer feedback
- B) Create in-store displays
- C) Generate public relations opportunities
- D) Network and showcase products to industry buyers
Answer: D) Network and showcase products to industry buyers
Q57. A promotional strategy that encourages consumers to redeem points for purchases or discounts is called:
- A) Contest-based promotion
- B) Sweepstakes
- C) Loyalty programs
- D) Price-off promotion
Answer: C) Loyalty programs
Q58. Which of the following aims to stimulate repeat purchases by providing points or discounts based on prior purchases?
- A) Price-off promotion
- B) Loyalty program
- C) Rebate
- D) Sampling
Answer: B) Loyalty program
Q59. A primary advantage of loyalty programs is their ability to:
- A) Attract new customers
- B) Encourage short-term buying
- C) Establish long-term relationships with customers
- D) Reduce inventory costs
Answer: C) Establish long-term relationships with customers
Q60. In sales promotion, a “push strategy” typically involves:
- A) Direct-to-consumer advertising
- B) Encouraging intermediaries to promote the product
- C) Reducing prices to attract customers
- D) Focusing on digital-only channels
Answer: B) Encouraging intermediaries to promote the product
Q61. What is the primary purpose of a "pull strategy" in sales promotion?
- A) To improve distribution channels
- B) To create demand directly from consumers
- C) To build long-term relationships with retailers
- D) To enhance brand image through public relations
Answer: B) To create demand directly from consumers
Q62. Coupons are an example of:
- A) Price-based promotion
- B) Product-based promotion
- C) Trade-oriented promotion
- D) Service-oriented promotion
Answer: A) Price-based promotion
Q63. An objective of trade promotions is to:
- A) Encourage customer loyalty
- B) Attract consumers to try a new brand
- C) Motivate wholesalers and retailers to stock more inventory
- D) Focus on digital sales growth
Answer: C) Motivate wholesalers and retailers to stock more inventory
Q64. Which type of sales promotion is primarily designed to create brand exposure in-store?
- A) Contests
- B) Price-offs
- C) Point-of-purchase displays
- D) Rebates
Answer: C) Point-of-purchase displays
Q65. An example of a non-monetary sales promotion would be:
- A) Discounts
- B) Price-offs
- C) Free trials
- D) Cash-back rebates
Answer: C) Free trials
Q66. A temporary price reduction is known as a:
- A) Sweepstakes
- B) Rebate
- C) Price-off
- D) Premium
Answer: C) Price-off
Q67. Which of the following is NOT a consumer-oriented sales promotion?
- A) Sweepstakes
- B) Loyalty program
- C) Trade allowance
- D) Coupons
Answer: C) Trade allowance
Q68. Cross-promotion occurs when:
- A) A brand uses both price-offs and loyalty programs
- B) Different brands promote each other’s products
- C) A company offers digital and in-store promotions simultaneously
- D) Products are bundled together
Answer: B) Different brands promote each other’s products
Q69. Which promotion strategy is likely to attract new users and increase product trial rates?
- A) Loyalty programs
- B) Coupons
- C) Rebates
- D) Sweepstakes
Answer: B) Coupons
Q70. Which type of sales promotion strategy uses physical displays to increase product visibility?
- A) Digital advertising
- B) Sweepstakes
- C) Point-of-purchase displays
- D) Price discrimination
Answer: C) Point-of-purchase displays
Q71. Dealer contests are primarily aimed at:
- A) Consumers
- B) Wholesalers and retailers
- C) The general public
- D) Manufacturers
Answer: B) Wholesalers and retailers
Q72. Sampling as a promotional strategy works best when:
- A) The product has a high repeat purchase rate
- B) Consumers are already familiar with the product
- C) The product is intangible
- D) Brand awareness is already high
Answer: A) The product has a high repeat purchase rate
Q73. When a brand partners with a related brand to offer a joint promotion, it is known as:
- A) Brand bundling
- B) Cross-promotion
- C) Co-branding
- D) Affinity marketing
Answer: B) Cross-promotion
Q74. Sales promotion that offers a discount on an additional purchase is called:
- A) Cross-promotion
- B) BOGO (Buy One Get One)
- C) Loyalty rewards
- D) Premium incentives
Answer: B) BOGO (Buy One Get One)
Q75. Rebates require customers to:
- A) Receive an instant discount
- B) Pay upfront and get a refund later
- C) Join a loyalty program
- D) Visit the store in person
Answer: B) Pay upfront and get a refund later
Q76. A significant disadvantage of coupon promotions is that they can:
- A) Increase brand loyalty
- B) Lower consumer price sensitivity
- C) Diminish perceived brand value
- D) Encourage frequent purchases
Answer: C) Diminish perceived brand value
Q77. Sweepstakes differ from contests in that they:
- A) Require a purchase to enter
- B) Do not require a purchase or skill
- C) Focus on specific customer demographics
- D) Are generally longer-term promotions
Answer: B) Do not require a purchase or skill
Q78. An example of a trade-oriented promotion is:
- A) Consumer sweepstakes
- B) Slotting allowance
- C) Online coupon code
- D) Free samples to consumers
Answer: B) Slotting allowance
Q79. A downside of frequent promotions is that they can:
- A) Increase brand loyalty
- B) Reduce consumer price expectations
- C) Attract only one-time buyers
- D) Encourage impulse buying
Answer: C) Attract only one-time buyers
Q80. Sweepstakes are most effective in generating:
- A) Short-term sales
- B) Awareness and interest
- C) Repeat customer loyalty
- D) Brand partnerships
Answer: B) Awareness and interest
