Scenario 7-2 You Have Been Appointed Director of Research for the Rhode

question 92

Multiple Choice

Scenario 7-2
You have been appointed director of research for the Rhode Island Runners, a new minor league baseball team that will make its debut in six months. There have been minor league franchises in the area in the past, but due to a lack of fan support, they all have folded. The Runners' upper management is convinced that past failures were the result of improper marketing. Therefore, management has committed a substantial amount of money to developing smart, effective advertising. Management has put you in charge of an intensive one-year program to guide and track the advertising.
-(Scenario 7-2) You have determined that the major competitors in the family leisure market are movies,theme parks,and outdoor festivals.You use a theater test to measure attitude change resulting from a TV commercial being tested for the Runners.The spot does not do very well in the test.Still,your gut instincts say that the commercial is a good one.When reporting the results to the team owners,you should point out that: 

• A) the commercial shouldn't run as is, despite your own opinion of it. 
• B) this kind of research is rarely useful in measuring actual behavior.  
• C) the identification of competitors may have been inaccurate. 
• D) theater audiences are not considered scientifically reliable.

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Definitions:

Double Its Inputs

The act of a firm increasing the amount of inputs used in production, such as labor and capital, by two times.

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.

Cobb-Douglas

A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.