A Nationwide Restaurant Chain Is Considering the Use of a Direct

question 66

Multiple Choice

A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers.Managers of the company should realize that two disadvantages related to this tactic are: the high cost per contact, and the:

• A)limited ability to test executions.
• B)lack of creative options.
• C)inaccuracy of addresses on mailing lists.
• D)consumers' distrust in mailed advertising.

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Definitions:

FV

A financial term representing the future value of an investment, accounting for factors like interest rates and time.

Quarterly Compounding

The process of calculating interest on both the initial principal and the accumulated interest over four periods within a year.

Semi-Annually

Occurring twice a year; typically referring to the frequency at which interest is paid or calculated.

Future Value

The amount of money an investment is expected to grow to over a period of time, assuming a specific interest rate.