Marketing Quiz
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PROMOTION & INTEGRATED MARKETING COMMUNICATIONS
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A streaming service offers a "30-day free trial." Users must enter their credit card information to sign up. Buried in the terms of service is a clause stating the user will be automatically enrolled in the most expensive premium plan and charged immediately if they do not cancel at least 24 hours before the trial ends. The company experiences a high initial sign-up rate but also high churn after the first billing cycle and significant backlash on consumer review websites.
This promotion's negative long-term effects are primarily a result of what pitfall?
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