A Company That Sells Eco-Friendly Cleaning Products Is Concerned That

question 22

Multiple Choice

A company that sells eco-friendly cleaning products is concerned that only 19.5% of people who use such products select their brand. A marketing director suggests that the
Company invest in new advertising and labeling to strengthen its green image. The
Company decides to do so in a test market so that the effectiveness of the marketing
Campaign may be evaluated. Based on data collected in the test market, the company
Constructed a 98% confidence interval for the proportion of all consumers who might buy
Their brand. The resulting interval is 16% to 28%. What conclusion should the
Company reach about the new marketing campaign?

• A) The data do not provide convincing evidence that the marketing campaign increases
• The percentage of customers for the company's products.
• B) The data do provide convincing evidence that the marketing campaign increases the
• Percentage of customers for the company's products.
• C) The new marketing campaign is effective in increasing the percentage of customers
• Buying their brand.
• D) The company should launch the new marketing campaign.
• E) None of the above.

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Definitions:

Adverse Selection

A situation in which one party in a transaction has more information than the other, typically leading to an inefficient market outcome.

Health Care Costs

The expenses related to maintaining the health of individuals, including medical services, medications, and treatments.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period of time.

Health Care Expenditures

The total amount of money spent by individuals, insurance companies, and governments on health care services and products.