Margaret Day Craddock Is the Director of MIFA, a Charitable

question 11

Multiple Choice

Margaret Day Craddock is the director of MIFA, a charitable organization in Memphis, Tennessee. Margaret has contracted with a marketing research firm in Memphis to conduct a telephone survey of Memphis MSA residents to assess their awareness of charitable organizations, tax code provisions for charitable donations, attitudes toward charitable organizations, and intentions to contribute in the coming year. Not everyone contacted will be eligible to take part in the study as there is a screening question which asks if the potential respondent is the person in the household that is most likely to make decisions regarding the family's contributions to charity. Because Margaret plans on using the research information to help her set objectives and the budget for the coming year, she has instructed the research firm to ensure that the information is representative of the MSA. Bob Smith, of the research firm, is using a probability sample and he is taking safeguards to minimize nonsampling error. Today, Bob is working on factors that will affect the response rate. Because there will be a screening question, Bob knows that this will:

• A) not have any impact on the response rate
• B) not have any impact on the nonresponse rate
• C) have an impact on the response rate in that only those respondents who are "eligible" (i.e. pass the screen), will be included in the denominator of the response rate formula
• D) have an impact on the response rate in that only those respondents who are "ineligible" (i.e. fail to pass the screen), will be included in the denominator of the response rate formula
• E) lower the response rate because many persons contacted will not be responsible for making contribution decisions

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Definitions:

Focused Differentiation

A business strategy where a company offers unique products or services to a specific, narrow target market.

Focused Cost Leadership

A strategy that seeks the lowest costs of operations within a special market segment.

Strategy Management

The process of defining the strategy or direction of an organization, and making decisions on allocating resources to pursue this strategy.

Strategy Identification

The process of recognizing and defining the course of action or policies designed to achieve a major or overall goal.