Innovyx Is an E-Mail Marketing Service Provider

question 136

Multiple Choice

Innovyx is an e-mail marketing service provider.It has a new ad campaign aimed at changing negative perceptions of e-mail.The ads explain how much cheaper e-mail advertising is than traditional advertising and what a high return on investment it can generate if used properly.Finally,the message ends by suggesting that companies wanting to promote their products give e-mail a chance to show what it can do.This promotion has the task of:

• A) persuading.
• B) informing.
• C) reminding.
• D) suppressing.
• E) rewarding.

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Definitions:

Diseconomies of Scale

A situation where an increase in production leads to higher average costs for firms, contrary to economies of scale.

ATC

Average Total Cost, the total cost divided by the quantity of output produced; it's a measure of per-unit production cost.

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.