A Market Research Firm Has Come Up with Two Coupon

question 1

Essay

A market research firm has come up with two coupon designs that could be inserted into the envelopes that go out with the monthly statement to credit card customers. The coupons offer the customer an opportunity to become a member of a travel club. The research firm is interested in estimating the difference in proportion of customers who will join the club after receiving one or the other of the two coupons. To obtain this estimate, the research firm has sent out coupon design 1 to a random sample of 100 customers. A second random sample of 100 customers received coupon 2. For the first coupon, 11 customers joined the travel club, while 15 customers who received coupon 2 joined. Based upon this sample information, develop and interpret the desired 95 percent confidence interval estimate.

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Definitions:

Conjoint Analysis

A statistical technique used in market research to determine how people value different features that make up an individual product or service.

Product Attributes

The features, functions, benefits, and characteristics that define a product and contribute to its perceived value and utility by consumers.

Market Analysis

The process of researching and understanding the dynamics of a specific market within an industry, including size, trends, competition, and customer behavior.

Brand Valuation

The process of estimating the total financial value of a brand, taking into account its market position, customer loyalty, and brand recognition.