Which of the Following Would MOST Weaken the Argument for a Company

question 9

Multiple Choice

Which of the following would MOST weaken the argument for a company continuing with direct mail marketing?

• A) It would have to use highly selective mailing lists to ensure that its messages reach the target audience.
• B) Analysts are predicting a decline in the use of traditional forms of direct mail in coming years.
• C) Competitors are starting to use more intrusive direct marketing techniques.
• D) The effectiveness of direct mail marketing would have to be evaluated and monitored continuously in order to reduce costs.
• E) In terms of per thousand people reached,mass media is much less expensive than direct mail marketing.

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Definitions:

Market Power

The ability of a company or entity to control prices or exclude competition in a particular market.

Bid Rigging

An illegal agreement between parties to conspire to fix the outcomes of bidding processes to benefit all involved parties unfairly.

Predatory Pricing

The practice of selling a product or service at a very low price with the intent of driving competitors out of the market or creating barriers to entry for potential new competitors.

Meeting-The-Competition Defense

A legal defense allowing a business to justify certain behaviors, such as price fixing, by proving they were necessary to meet a competitor's prices.