Scenario 6.1 Use the Following to Answer the Questions

question 193

Multiple Choice

Scenario 6.1
Use the following to answer the questions.
Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer.Treatment options include manicures,pedicures,facials,tea parties,and dress up photos.Parents can even purchase a birthday party package.Currently,Lil' Angels offers its services only to girls under the age of 14.Originally begun in Delaware,Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17.The company realizes that some changes may be needed.For example,management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 6.1.In calculating the sales forecast for the next year,marketers at Lil' Angels use data from the past five years in order to identify any trends that surface.Additionally,marketers want to find out what family variables relate to those sales.Which of the following variables should the marketers use in relating to sales? What type of forecast method will they be using to relate the variables to sales trends?

• A)behavioristic;time series analysis
• B)psychographic;time series analysis
• C)demographic;regression analysis
• D)income;regression analysis
• E)family life cycle;market tests

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Definitions:

Indigestible Substances

Materials that cannot be broken down and absorbed by the digestive enzymes and system of an organism, often passing through the system largely unchanged.

Entropy

Measure of how much the energy of a system is dispersed.

Energy Conversion

The process of changing one form of energy into another, such as solar energy into electricity.

Increasing Entropy

The process by which the disorder or randomness in a system increases, often associated with the second law of thermodynamics.