Macmoo Real Estate Is Beginning to Use Data-Driven Processes to Determine

question 228

Short Answer

Macmoo Real Estate is beginning to use data-driven processes to determine the value that it gets from different marketing activities. Macmoo's website lists available properties and allows customers to request information. Macmoo tends to advertise in local newspapers and specialized real estate periodicals. The marketing director believes that Macmoo's traditional spring advertising campaign, which runs during the month of March, is an effective use of advertising resources. When pressed for evidence, the marketing director points out that revenues in March have consistently been higher than revenues in February.
During 2013, Macmoo completed fewer real estate transactions than it did during any similar time period during the last five years. Still, the marketing director claims that its marketing efforts led to very positive financial results for Macmoo. Which of the following, if true, would resolve this seeming discrepancy?
In 2013, Macmoo spent more on advertising than it did in 2012.
In 2013, Macmoo diverted marketing efforts to support several corporate social responsibility initiatives.
Sales projections completed in 2010 predicted even lower sales volume in 2011.
In 2013, marketing efforts focused on sales of very expensive properties.
In 2013, Macmoo's principal competitors cut back on their marketing expenditures.

Understand the importance of timing and sequence in strategic business decisions.

Understand the concept of confirmation bias and how it influences decision-making.

Recognize the advantages of group decision-making over individual decision-making.

Identify and explain the phenomenon of decision fatigue and its consequences.

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Definitions:

Warranty Expense

Costs a company incurs due to repairing or replacing products under warranty.

Tax Penalty

A tax penalty is a fine or charge imposed by governmental authorities on individuals or organizations for failing to comply with tax laws.

Deferred Tax Asset

An asset on the balance sheet representing taxes paid or carried forward but not yet realized. This can arise due to timing differences between the recognition of income and expenses for financial reporting and tax purposes.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a specific tax year.