Without Good Mailing Lists,businesses Cannot Engage in Effective Direct-Marketing Advertising

question 14

Multiple Choice

Without good mailing lists,businesses cannot engage in effective direct-marketing advertising.On average 20 percent of the U.S.population moves annually.Return Path is a company that provides changes of addresses to businesses.It takes a business's mailing list,compares it to address changes that it gathers daily in its database and makes any necessary corrections.Return Path is a part of which trend in the services marketing industry?

• A) The increasing importance of service industries to the U.S.and world economies
• B) The decrease of human interaction as a result of widespread use of technology-based services
• C) The growth in the use of technology-based services
• D) Increased competition in the direct-mail industry
• E) The fact that direct marketing firms are placing increased emphasis on providing services

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Definitions:

MC > P

A situation where the marginal cost of producing an additional unit is greater than the price at which it can be sold, suggesting that production should be decreased.

Pure Monopolist

A firm that is the sole seller of a product or service in a market, without any close substitutes, possessing significant market power.

Profit-maximizing Output

The level of production at which a firm can achieve the highest possible profit, determined by where marginal cost equals marginal revenue.

Resource Allocation

The process of distributing available resources among various competing needs or uses to maximize overall benefit.