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Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely.Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.
The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card.Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbours.Buying patterns are then compared.For example, Pilgrim Cereals tested a Crunchy Wheat promotion using this system.Half of the 5000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion.Pilgrim used scanner data to evaluate the promotion's success before offering the commercials nationwide.
-Pilgrim Cereals' testing of the Crunchy Wheat promotion is an example of:
Skilled-Based Pay
A compensation strategy where employees are paid based on their skills, certifications, or knowledge, rather than their job title or position.
Incentive Pay
A form of compensation designed to reward employees for achieving performance targets or completing specific objectives.
Wage Inversion
A scenario where newer employees receive higher wages than their more experienced counterparts, often due to market demand or inflation.
Y2K Problem
Refers to a widespread computer bug that was predicted to cause systems to fail at the turn of the millennium because many programs represented years with only two digits.
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