Solution for Advertising and Promotion: An Integrated Marketing Communications Perspective 10th Edition Chapter 14, Problem 1

by George E. Belch, Michael A. Belch
343 Solutions 22 Chapters 53910 Studied ISBN: 9780078028977 Art and Architechture 5 (1)

Chapter 14, Problem Additional_Discussion_Questions 1 : 11.The number of telemarketing centers in the United...

11.The number of telemarketing centers in the United States has decreased in the past few years. Why has this occurred?  (LO3)


Step-By-Step Solution

11.To cut down on the intrusion of telemarketers, the FTC started a “do not call list” in which consumers could register to have telemarketers stop calling them. With all of its good intentions, not everyone is               happy with the do not call list. The law               allows consumers to place their name on a list               that telemarketers, with some exceptions, may not call. Companies that call someone whose name is on the list faces               penalties, including fines, for each occurrence.  A “do not call” list for cell phones is also available for those who wish to avoid telemarketers. One for e-mails is currently under consideration. Politicians, political parties and most nonprofits are exempt.

Over 148 million people have already signed up for the do not call list, and the cell phonelist continues to grow. Telemarketers in violation have been prosecuted and fined—making many consumers happy. At the same time, many businesses and organizations               alike are not pleased with the lists. They contend that lost sales, and the inability to call prospects will result in the loss of millions of jobs and revenues and that they would be               driven out of business. As a result they filed a suit in court challenging the legality of the lists. As noted in the chapter, the legality of the system was upheld, as were the penalties doled out to those in violation.

The net result of these actions is that the number of people employed in the telemarketing industry has declined significantly. Of course, so too has the number of call centers.  As               to what will happen to the telemarketing industry, it is too early to tell.


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