An Objective of a Direct-Mail Campaign Is to Solicit an Order

question 57

Multiple Choice

An objective of a direct-mail campaign is to solicit an order from the prospects.Your firm's latest direct-mail offer was mailed to 100,000 targeted consumers.To date,you have received 2,000 orders for your offer.Based upon what the industry's historical order-response rate,has this campaign been successful

• A) Yes, a 2% rate is considered good.
• B) No, the 2% rate is below acceptable standards for a mailing.
• C) No, the 2,000 orders does not cover the marginal costs of the mailing.
• D) No, the level is below acceptable levels.
• E) Cannot tell without more information.

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Definitions:

Detent Position

A mechanical feature that locks a moving part in a specific position, often found in gear selectors to hold gears in place.

1st-Reverse Rail

A component in manual transmission systems, engaging the gear mechanism for the first or reverse gears.

Conversion Cost

The combined cost of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Book Value

The net value of a company's assets minus its liabilities and intangible items, as stated on the balance sheet.