Why Are Many Marketers Shortening the Time in Which a Coupon

question 10

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 limit the use of on-pack coupons

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Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Cost of Capital

The essential return rate an enterprise must attain on projects to uphold its market value and pull in investment.

Present Values

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Net Present Value

A financial metric that calculates the value of projected cash flows, discounted back to the present value.