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A Design to Measure the Effectiveness of a Test Commercial

question 103

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A design to measure the effectiveness of a test commercial for Sears would be implemented as follows. Respondents are recruited to central theater locations in different test cities. At the central location, respondents are first administered a personal interview to measure, among other things, attitudes toward the store (O1) . Then they watch a TV program, the respondents are again administered a personal interview to measure attitudes towards the store (O2) . The effectiveness of the test commercial is measured as O2 - O1.


Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

EVA

Economic Value Added, a measure of a company's financial performance based on the residue wealth calculated by deducting its cost of capital from its operating profit.

Investor-supplied Capital

Funds provided by investors to a company, used for business activities and growth.

Operating Income

Revenue from a company’s core business operations, excluding deductions of expenses like cost of goods sold, salaries, and other operating expenses.

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