This topic contains a solution. Click here to go to the answer

Author Question: Describe the coupon redemption process and how misredemption can ... (Read 47 times)

danielfitts88

  • Hero Member
  • *****
  • Posts: 535
Describe the coupon redemption process and how misredemption can occur.

Question 2

Advertising adds value to brands by influencing perceptions.
 a. True
  b. False
 Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

The process begins with a manufacturer distributing coupons to consumers. Consumers collect coupons, take them to the store, and present them to a checkout clerk, who subtracts each coupon's face value from the shopper's total purchase cost. Retailers, in turn, redeem the coupons they have received to obtain reimbursement from the manufacturers that sponsored the coupons. Retailers typically hire a clearinghouse to sort and redeem the coupons in return for a fee. Clearinghouses forward the coupons to redemption centers, which serve as agents of coupon-issuing manufacturers. A redemption center pays off on all properly redeemed coupons and then is compensated for its services by the manufacturer. The retailer is reimbursed for the amount of the face value paid to the consumer and for payment of a handling charge, which currently is 8 cents per coupon. Herein rests the potential for misredemption.

Misredemption occurs at every level of the redemption process. Sometimes consumers present coupons that have expired, coupons for items not purchased, or coupons for a smaller-sized product than that specified by the coupon. Some clerks take coupons to the store and exchange them for cash without making a purchase. At the store management level, retailers may boost profits by submitting extra coupons in addition to those redeemed legitimately. Shady clearinghouses engage in misredemption by combining illegally purchased coupons with real ones and certifying the batch as legitimate. The major source of coupon misredemption is large-scale professional misredeemers. These professional misredeemers either (1) recruit the services of actual retailers to serve as conduits through which coupons are misredeemed or (2) operate phony businesses that exist solely for the purpose of redeeming huge quantities of illegal coupons, which typically are obtained by removing FSIs from Sunday newspapers.

Answer to Question 2

True




danielfitts88

  • Member
  • Posts: 535
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

For a complete list of videos, visit our video library