1. Present your personal views concerning the number of coupons distributed annually in the United States. Is widespread couponing in the best interest of consumers? 2. Rather than offering discounts in the form of coupons, why don’t brand managers simply reduce the prices of their brands? 3. Using Table 18.3 as a rough guide, calculate the full cost per redeemed coupon given the following facts: (1) face value = 75 cents, (2) 20 million coupons distributed at $7 per thousand, (3) redemption rate = 3 percent, (4) handling cost = 8 cents, and (5) rate = 5 percent.
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