Which of the Following Is a Disadvantage of Couponing

question 75

Multiple Choice

Which of the following is a disadvantage of couponing?

• A)It can be difficult to estimate how many consumers will use a coupon and when.
• B)It discourages initial product trial.
• C)It assists in reducing the price of a product only by relying on retailers for cooperation.
• D)It assists only in attracting new customers but does not help in retaining existing customers.
• E)It may encourage regular users to trade down to inexpensive brands.

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Definitions:

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Equivalent Interest Rate

A rate that represents the annual interest yield of an investment or loan, taking into account the effects of compounding.

Nearest 0.01%

Measurement or calculation precision to the hundredth of a percent.

Equivalent Interest Rate

The interest rate that gives the same compounded financial outcome as other rates calculated over different time periods.