Scenario 5.1 Use the Following to Answer the Questions

question 50

Multiple Choice

Scenario 5.1
Use the following to answer the questions.
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 neighbors.Buying patterns are then compared.For example,Kashi cereals tested a Crunchy Wheat promotion using this system.Half of the 5,000 participating homes in one city saw a commercial announcing the promotion;the other half saw a commercial that did not mention the promotion.Kashi used scanner data to evaluate the promotion's success and offered the commercials nationwide.
-Refer to Scenario 5.1.The 5,000 households that allowed their group purchases to be scanned are a

• A)focus group.
• B)quota.
• C)sample.
• D)target market.
• E)population.

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Definitions:

Non-Controlling Interests

A minority stake in a company that is not enough to exert control over it.

Comprehensive Income

The change in equity of a company during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.

Tax Effect

The impact of tax laws on business transactions, which influences how these transactions are structured and reported.