Marketers Know That Coupons Might Not Result in a Net

question 119

Essay

Marketers know that coupons might not result in a net increase in sales,yet they continue to issue them.Why do marketers continue to use coupons?

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Definitions:

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; commodities are often used as inputs in the production of other goods or services.

Comparative Advantage

The competency of a country, individual, corporation, or region to manufacture a good or provide a service at a reduced opportunity cost than that of its competition.

Relative Efficiency

A measure of how effectively an entity (such as a firm or economy) utilizes its resources compared to another, often used to identify opportunities for improvement.

Absolute Efficiency

A state where resources are allocated in the most effective way possible, achieving maximum output with given inputs.