SCENARIO 4-12 A Consulting Firm That Surveyed Consumers' Holiday Shopping Behavior Found

question 146

Essay

SCENARIO 4-12
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. The survey also found that the percentage of
consumers from the U.S., Canada, and China who said that they were willing to share personal
information with retailers in order to receive personalized offers from retailers were 55%, 46% and
72%, respectively. Assume that there are equal portions of consumers being surveyed from each of
the three countries, the survey results are good representations of the three populations of consumers,
and whether a consumer plans to spend more on holiday shopping is statistically independent of
whether he/she is willing to share personal information with retailers in order to receive personalized
offers from retailers.
-Referring to Scenario 4-12, if you randomly select a consumer from any of the three countries,
what is the probability that the consumer is willing to share personal information with retailers in
order to receive personalized offers from retailers?

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Definitions:

Trial Period

A trial period is a pre-defined time frame during which a product or service can be tested or used before full commitment or purchase is required.

Good Faith

Acting with honesty and sincerity without any intention to deceive or defraud in a contractual or legal context.

Destructive Bargaining

Negotiation tactics that seek to undermine or diminish the position of the other party, rather than working toward mutual benefit.

Contract Negotiations

The process of discussing terms and details between parties in order to reach a mutual agreement for a contract.