What Are the Two Goals of Direct Marketing

question 115

Multiple Choice

What are the two goals of direct marketing?

• A)to identify a potential customer and obtain an immediate response
• B)to obtain an immediate response and to facilitate a purchase
• C)to obtain an immediate response and build a lasting customer relationship
• D)to provide information and build a lasting customer relationship
• E)to save marketing dollars and facilitate a purchase

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Definitions:

Expected Return

The predicted amount of profit or loss an investment generates based on historical or projected performance.

Risk-free Rate

The return on investment of a theoretically risk-less security, often represented by the yield on government bonds.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk, compared to a risk-free investment.

Risky Asset

An investment that holds a significant chance of losing all or part of its value.