Advertising Promotion and Other Aspects of Integrated Marketing Communications 9th Edition by Terence Shimp, Craig Andrews

Exercise 5

Using Table 19.3 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) misredemption rate = 5 percent.