Why Are Many Marketers Shortening the Time in Which a Coupon

question 107

Multiple Choice

Why are many marketers shortening the time in which a coupon can be redeemed?

• A) To track response rates
• B) To increase introductory sales
• C) To create a greater sense of urgency to redeem the coupon
• D) To respond to claims that coupons adversely affect consumer behavior
• E) To limit the use of on-pack coupons

---

Definitions:

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service, crucial for making decisions about production quantities and pricing.

Pure Monopoly

A market structure where a single seller completely dominates the market, facing no competition.

Purely Competitive

A market structure characterized by a large number of firms, easy entry and exit, and a homogeneous product.

Average Total Cost

The total cost of production divided by the total quantity produced, including both fixed and variable costs.