Business Studies · Marketing Management
A Dedicated Marketing Manager (DMM) is tasked with optimizing the bank's marketing spend. The DMM finds that the cost per lead (CPL) generated by Direct Selling Agents (DSAs) is significantly lower than the CPL from the bank's digital campaigns. What is the primary trade-off the DMM must consider when relying heavily on DSAs?
- 1Digital campaigns cannot be used to source customers from rural areas, limiting market reach.
- 2DSA performance is highly volatile, dependent on commission rates and market conditions.
- 3DSAs are prone to a higher incidence of credit fraud and subsequent default rates.✓
- 4DSAs only source secured loans, whereas digital campaigns source unsecured loans.
Correct answer
DSAs are prone to a higher incidence of credit fraud and subsequent default rates.
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