Question

A disadvantage of couponing is…? radio_button_unchecked Low redemption rates. radio_button_unchecked Reduces consumer’s perceived risk associated with trial of a new brand. radio_button_unchecked Encourages repeat purchase. radio_button_unchecked Helps coax users to trade up to more expensive brands. SUBMIT

Answer 1

Low redemption rates.

Step-by-step explanation:

Couponing is a kind of promotion used by businesses in giving discounts to their customers for products purchased. it is done using coupon cards.

Low redemption rate simply means the number of people that make use of the coupon card in purchases as a percentage of number of coupon cards distributed. The implications of low redemption rates as a disadvantage of couponing means lower sales for the business and this could consequently cause losses as this indicates that promotion was not effective. In other words, low sales using coupons increases cost to company lowering profit and maybe causing losses

Answer 2

Correct Answer:

1. Low redemption rates.

Step-by-step explanation:

Couponing is the situation whereby discount in form of Coupons are offered to customers over a specific product that is on sale. It is similar to product discount other than the fact that, the discount is based on the coupon card.

The disadvantage of offering coupons is that you would be giving a discount to people who would buy your products even without them anyway thereby leading to low redemption rate. This can be costly and also increases the risk of incurring losses.