Scenario 18.2 Use the Following to Answer the Questions

question 44

Multiple Choice

Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies.Probably the most well-known company in the group is the State Farm Insurance company,the largest auto and home insurer in the United States.State Farm Insurance provides protection for approximately 78 million policies on auto,fire,life,and health services.It is also a leading insurer of homes and autos in Canada.Another company in the State Farm group is the State Farm Bank,which was opened in 2000,beginning State Farm's entry into the financial services field.However,the State Farm Bank is not a traditional bank,in that it has no branch offices and its services are provided through State Farm agents,a call center,the mail,and on the Internet.It currently serves over 1.9 million bank accounts.
-Refer to Scenario 18.2.If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year,it would most likely use the ____ approach to advertising allocation.

• A)arbitrary
• B)competition-matching
• C)objective-and-task
• D)percent-of-sales
• E)percent-of-customer

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Definitions:

Exponential Smoothing

A forecasting technique that uses weighted averages of past observations to forecast future values, giving more weight to recent observations.

Multiple Regression Analysis

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Long-Range Forecasting

The process of predicting future events, trends, or behaviors over a lengthy time horizon, often several years.

Capital Expenditures

Investments in physical assets or improvements, including buildings, equipment, and technology, that will benefit a business in the long term.