George Duncan, Marketing Manager at Conrad & Scott (C&S) Inc

question 45

Multiple Choice

George Duncan, Marketing Manager at Conrad & Scott (C&S) Inc., is planning to make a few changes in the marketing mix of a particular brand of cereal. He is considering conducting a survey of customers to see how they would react to some of the changes. However, before he initiates this survey, he evaluates the information he expects to get from such a survey and concludes that the costs exceed the expected value of the information. Which of the following additional information, if true, would be most likely to persuade George to reevaluate the information and push ahead with the survey?

• A) C&S's main competitor had registered a spike in sales last year after it used a survey to tweak the price and features of their bestselling cereal.
• B) These changes are not likely to impact the price or features of the product in a significant manner.
• C) New metrics are now available for this survey that deliver more accurate information by surveying a more targeted population.
• D) These changes were instituted in the marketing mix of a different cereal brand of the same company and were accepted readily by customers, resulting in an increase in sales.
• E) This customer survey is one of the cheapest and most accurate models available in the market.

Identify and explain the biases in the CPI calculation.

Understand how technological advancements affect CPI calculations.

Recognize the largest component of the CPI based on consumer spending.

Comprehend the differences between the CPI and GDP deflator in reflecting price changes.

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Definitions:

Domestic Chorses

Regular tasks or duties performed around one's home, such as cleaning, cooking, and home maintenance. Correct term should be "chores".

Vision Quest

A rite of passage in some Native American cultures involving a period of solitary introspection, fasting, and connection with nature, aimed at spiritual growth and guidance.

Supernatural Experience

An event or perception that is beyond the scientific understanding of the natural world, often involving entities or forces considered beyond the realm of the ordinary.

Fasting

A voluntary abstention from eating and sometimes drinking for a defined period of time for religious, health, or other reasons.