Freebie Marketing Reading Answers

Dec 5, 2022

Freebie Marketing Reading Answers has 13 questions that need to be answered in 20 minutes. Freebie Marketing Reading Answers comprises three types of questions, namely-choose the correct headings, complete the sentence and complete the summary. Candidates must read the IELTS reading passage to complete the summary. To choose the correct heading, candidates are required to understand the statement provided and spot the keywords. Candidates must read the IELTS Reading reading passage for completing the sentences and identify keywords, as well as recognize synonyms to answer the question. For more varied topics, candidates can undertake IELTS Reading practice papers.

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Reading Passage Question

In the late 1890s. while travelling as an Itinerant salesperson for the Crown.Cork, and Seal Company. King C. Gillette observed how his corked bottle caps were discarded immediately after opening. Nevertheless, his company turned a healthy profit and there was Immense business value. Gillette soon came to realize, in a product that was used only a few times. Gillette had his own personal breakthrough while Struggling with a straight-bladed razor – a slow, fiddly, and potentially dangerous instrument that required sharpening on a regular basis. A simple, disposable blade that could be thrown away when it dulled would meet a real need and generate strong profits, he correctly reasoned. After founding the American Safety Razor Company In 1901. his sales leapt from 168 blades in 1903 to 123.648 blades only a year later.
What King C. Gillette pioneered is far more than a convenient and affordable way for men to shave, however, it is the business practice now known as “freebie marketing” that has inspired many more companies over the years. Gillette’s approach was contrary to the received wisdom of his era. which held that a single, durable, high-quality, and relatively expensive consumer item with a high profit margin was the best foundation for a business.Freebie marketing involves two sets of items: a master product that is purchased once, and a consumable product that is frequently disposed of and repurchased on an ongoing basis. In this instance, the master product is often sold with little to no profit margin and Is sometimes oven dispensed at a loss. As the consumables are purchased over months ur>d years, however, this can yield a much greater overall profit.
Freebie marketing only works if the producer of the master item is also able to maintain control over the creation and distribution of the consumables. If this does not happen, then cheaper versions of the consumable Items may be produced, leaving the original company without a source of profit. The video game company Atari, for example, initially sold its Atari 2600 consoles at cost price while relying on game sales for profit. Several programmers loft Atari, however, and began a new company called Activision which produced cheaper games of a similar quality. Suddenly. Atari was left with no way to make money. Lawsuits to block Activision failed, and Atari survived only by adding licensing measures to Its subsequent 5200 and 7800 consoles.
In other instances, consumers sometimes find that uses for a master product circumvent the need to purchase consumables. This phenomenon Is well known to have afflicted the producers of CueCat barcode readers. These were given away free through Wired magazine with the Intention that they would be used by customers to scan barcodes next to advertisements in the publication and thus generate new revenue flows. Users discovered, however, that the machines could be easily modified and used for other purposes, such as building a personal database of book and CD collections. As no licensing agreement was ever reached between Wired and Its magazine subscribers. CueCat were powerless to intervene, and after company liquidation, the barcode readers soon became available In quantities over 500.000 for as little as US$0.30 each.
Not oil forms of freebie marketing arc legal. One notable example of this Is the use of freebie marketing to “push” habit-forming goods in areas where there is otherwise no market. For illegal substances, this is already restricted on the basis of the product’s illegality, but the use of freebie marketing to promote legal goods such as tobacco, alcohol, and pharmaceuticals is also outlawed because the short-term gain to a small number of commercial outlets is not deemed worth the social cost of widespread substance abuse.
Another practice that is prohibited under antitrust laws Is a form of freebie marketing known as “tying”. This is when a seller makes the sale of one good conditional on the acquisition of a second good. In these instances, the first good is typically important and highly desirable, while the .second is inferior and undesirable. A music distributor who has the rights to an album that it is in high demand, for example, might only allow stores to purchase copies of this album if they also buy unpopular stock that does not sell very easily. Because this typically relies on the manipulation of a natural monopoly on the part of the distributor, such practices ore widely understood to constitute anti-competitive behavior.

Solution and Explanation

Question 1-6:
Choose the correct headings for sections A-F from the list of headings below.
Write the correct number i-x in boxes 1-6 on your answer sheet.

No giveaways for addictive products
Sales of razor blades increase astronomically
The monopoly of consumables is vital for success
Video gaming – a risky business
A novel method of dual marketing ruled out
Freebie marketing restricted to legal goods
Buyer ingenuity may lead to bankruptcy
A marketing innovation
A product innovation
More money to be made from high – quality products

(Guide: Candidates need to match the correct paragraph with the given statements from 1 to 10)

Section A

Answer: ix - A product innovation
Supporting sentence: Gillette had his own personal breakthrough while Struggling with a straight-bladed razor – a slow, fiddly, and potentially dangerous instrument that required sharpening on a regular basis.
Keywords: own personal breakthrough
Keyword location: section A
Explanation: The author in the first section states that Gillette achieved his own individual breakthrough while attempting to use a straight-bladed razor. It was a time-consuming, difficult, and potentially deadly tool that needed regular sharpening. So it is about the innovation of straight razor blade which is a product.

Section B

Answer: viii - A marketing innovation
Supporting sentence: What King C. Gillette pioneered is far more than a convenient and affordable way for men to shave, however, it is the business practice now known as “freebie marketing” that has inspired many more companies over the years.
Keywords: business practice, freebie marketing
Keyword location: section B
Explanation: It is stated in section B that it is the business strategy today known as "freebie marketing" that has spurred on a great number of businesses over the years. It is not just the invention of the blade.

Section C

Answer: iii - The monopoly of consumables is vital for success
Supporting sentence: Freebie marketing only works if the producer of the master item is also able to maintain control over the creation and distribution of the consumables.
Keywords: only works, maintain control, over creation and distribution
Keyword location: Section C
Explanation: As per Section C freebie marketing only functions if the company makes the main product. It can also continue to exercise control over the production and marketing of the commodities. Hence the monopoly of consumabkes is important or vital.

Section D

Answer: vii - Buyer ingenuity may lead to bankruptcy
Supporting sentence: Users discovered, however, that the machines could be easily modified and used for other purposes, such as building a personal database of book and CD collections.
Keywords: users discovered, easily modified, no licensing agreement, as little as US$0.30 each
Keyword location: section D
Explanation: The author in section D states that the devices could be easily customized and utilized for other tasks. It is such as creating a personal database of their book and CD collections. Because Wired and the readers of its magazines have never entered into a licensing deal. After the company was liquidated, the barcode readers quickly became accessible in over 500.000 units. It was as cheap as US$0.30 each, and CueCat was helpless to stop it. hence, we know that buyer integrity may lead to bankruptcy.

Section E

Answer: i - No giveaways for addictive products
Supporting sentence: For illegal substances, this is already restricted on the basis of the product’s illegality, but the use of freebie marketing to promote legal goods such as tobacco, alcohol and pharmaceuticals is also outlawed because the short-term gain to a small number of commercial outlets is not deemed worth the social cost of widespread substance abuse.
Keywords: illegal substances, freebie marketing, outlawed.
Keyword location: section E
Explanation: The author in the passage states that for intoxicants, this is already limited on the basis of the product's prohibition. But the use of freebie marketing to push legal commodities like cigarettes, alcohol, and pharmaceuticals is also prohibited. The social cost of widespread drug addiction is not worth the short-term advantage to a small number of commercial outlets. Hence, no giveaway for addictive products is the correct answer.

Section F

Answer: v- A novel method of dual marketing ruled out
Supporting sentence: Another practice that is prohibited under antitrust laws is a form of freebie marketing known as “tying”. This is when a seller makes the sale of one good conditional on the acquisition of a second good.
Keywords: practice prohibited, tying, one good conditional, second good
Keyword location: section F
Explanation: Section F states that "tying," a type of freebie marketing, is another tactic that is illegal under antitrust laws. This occurs when a seller makes the purchase of a second good a requirement for the selling of a first good.

Questions 7-9 :

Complete the sentences below.
Choose NO MORE THAN TWO WORDS from the text for each answer.
Write your answers in boxes 7-9 on your answer sheet.

(Guide: Candidates need to fill the blanks with not more than two words from the passage)

The new tactic of freebie marketing ran against the ………… of Gillette’s time.

Answer: received wisdom
Supporting sentence: Gillette’s approach had contrary to the received wisdom of his era. which held that a single, durable, high-quality, and relatively expensive consumer item with a high-profit margin was the best foundation for a business.
Keywords: Gillette, approach, received wisdom
Keyword location: section B
Explanation: From the passage, we see that Gillette's strategy was in opposition to the conventional knowledge of his time. This asserted that the greatest basis for a corporation was a single, robust, superior-quality, pricey consumer good with a high-profit margin. Getting something superior is wisdom.

Occasionally, people who buy a master product find ways of using it that get around the necessity of buying more ……………….

Answer: consumables
Supporting sentence: In other instances, consumers sometimes find that uses for a master product circumvent the need to purchase consumables.
Keywords: instances, master product, consumer, find uses, circumvent
Keyword location: section D
Explanation: Section D of the passage has the answer to the question. It says that In many situations, consumers occasionally discover that uses for a master item obviate the requirement to buy consumables. Hence, consumables is the correct answer.

Wired never had a ………………. with its customers about the use of the barcode readers.

Answer: licensing agreement
Supporting sentence: As no licensing agreement had ever reached between Wired and its magazine subscribers.
Keywords: Wired, magazine subscribers, licensing agreement
Keyword location: section D
Explanation: Section D of the passage directly states that Wired and its magazine readers have never entered into a licensing arrangement.

Questions 10-13 :

Complete the summary below.
Choose NO MORE THAN TWO WORDS from the text for each answer.
Write your answers in boxes 10-13 on your answer sheet.

Freebie marketing is not permitted by law for either illegal or legal 10 ………………… products. This type of promotion of goods such as tobacco and alcohol are not considered worth the 11 ……………. and has consequently been outlawed. “Tying” is also prohibited. This is when the sale of an attractive product is 12 …………………. on the purchase of another. It tends to occur when the seller takes advantage of a natural monopoly and is generally considered to be 13 ……………….

(Guide: Candidates need to fill the blanks with not more than two words from the passage)

Question 10:

Answer 10: habit-forming
Supporting sentence: One notable example of this is the use of freebie marketing to “push” habit-forming goods in areas where there is otherwise no market.
Keywords: not all, legal, push, habit forming goods
Keyword location: section E
Explanation: The author provides examples of non-legal freebie marketing. It states that not all freebie marketing is legal is made in section E. One prominent illustration of this is the use of gratis marketing to "push" addictive products in regions where there isn't a market.

Question 11:

Answer 11: social cost
Supporting sentence: the use of freebie marketing to promote legal goods such as tobacco, alcohol and pharmaceuticals is also outlawed because the short-term gain to a small number of commercial outlets is not deemed worth the social cost of widespread substance abuse.
Keywords: tobacco, outlawed, not deemed, social cost
Keyword location: section E
Explanation: The use of freebie marketing to promote legal items like tobacco, alcohol, and medications is similarly prohibited. It has been stated in section E. Because the short-term gain for a few commercial outlets is not thought to be justified by the social cost of pervasive drug abuse.

Question 12:

Answer 12: conditional
Supporting sentence: This is when a seller makes the sale of one good conditional on the acquisition of a second good.
Keywords: seller, sale of one conditional, second good.
Keyword location: section F
Explanation: Section F explains that it has been argued that the selling of one excellent product is dependent upon the sale of a second, less popular one. Tying is a marketing strategy that promotes the purchase of less popular goods.

Question 13:

Answer 13: anti-competitive behaviour
Supporting sentence: Because this typically relies on the manipulation of a natural monopoly on the part of the distributor, such practices are widely understood to constitute anti-competitive behaviour.
Keywords: natural monopoly, manipulation, distributor
Keyword location: section F
Explanation: The passage states that it is deemed anti-competitive behavior when a seller or distributor manipulates their monopoly. Therefore, "anti-competitive behavior" is the appropriate term to use.

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