Refer to the Passage Below to Answer the Questions That

question 42

Essay

Refer to the passage below to answer the questions that follow.
Proactive Solution is a skincare system to help people with acne. Proactive was originally sold only through direct marketing. The consumer had to enroll in the Proactive Solution Clear Skin Club. However, now some large malls have kiosks selling Proactive Solution products without the club membership, but the prices are much higher. Proactive Solution has had one of the longest-running infomercials on television, and its product line is also sold through magazine ads. Through these mediums, consumers can purchase the product directly by calling, mailing, or going through the Internet to submit an order.
-What do you think Proactive Solution uses to track consumer purchases? How can they use this to restart customers who have joined the club but later quit?

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Definitions:

Discretionary Fiscal Policy

Government policy actions, such as changes in taxation and spending, deliberately undertaken to influence economic activity and stabilize the economy.

Government Spending

Refers to the expenditure by government bodies on goods and services, including investments, infrastructure, and payments for social services.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenses.

Federal Funds Rate

The interest rate charged in the federal funds market; the interest rate banks charge one another for overnight borrowing; the Fed’s target interest rate.