Which Effectiveness Measure Is Most Commonly Employed in Direct Marketing

question 29

Multiple Choice

Which effectiveness measure is most commonly employed in direct marketing?

• A)Cost per order (CPO)
• B)Cost per thousand (CPM)
• C)Cost per man-hour (CPMH)
• D)Cost per new prospect (CPNP)
• E)Sales per database name (SDN)

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Definitions:

Variable Cost

Expenses that vary directly with the level of production output, such as raw materials, labor, and energy costs.

Output

The total amount of goods or services produced by a company, sector, or economy within a specific time period.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Fixed Cost

refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.