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Scenario 8-4 American Express Is Dissatisfied with the Degree of Penetration of Penetration

question 50

Multiple Choice

Scenario 8-4
American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets.
-(Scenario 8-4) American Express has decided to do a specific type of analysis that focuses on reach,frequency,time frame,production costs,media expenditures,and other specific elements.These factors are always included in a(n) analysis.

Definitions:

Discount Rate

The interest rate applied for calculating the present worth of anticipated cash flows in future during the discounted cash flow analysis process.

Compounded Monthly

Interest calculation method where the interest earned each month is added to the principal, thus increasing the amount of subsequent interest accrued.

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables on a dependent variable, allowing for interactions between variables.

ANOVA

A statistical method used to compare the means of three or more samples to find out if at least one sample mean is significantly different from the others, considering variation within and between groups.