Scenario 8-3 After Working as an Account Executive in an Advertising Agency

question 57

Multiple Choice

Scenario 8-3
After working as an account executive in an advertising agency for 20 years, you've decided you want to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells you the store and its entire inventory, but with one warning-he wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan.
-(Scenario 8-3) Your goals are very important at this stage,and you want to avoid budgeting methods that neglect to consider goals.This means that you can cross off one approach that is notorious for failing to relate advertising dollars to advertising objectives,and since you have no past records,this method would be impossible to implement anyway.Which of the following methods is this? 

• A) share-of-market approach 
• B) share-of-voice approach 
• C) percentage-of-sales approach 
• D) objective-and-task approach

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Definitions:

Nondirectional Test

A hypothesis that does not predict the direction of the difference or association between variables, only that there is a difference.

One-Tailed Test

A statistical test that determines the probability of the observed data under the assumption that one end of the probability distribution is scrutinized.

Two-Tailed Test

A statistical hypothesis test in which the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a certain range of values.

Null Hypothesis

A statement suggesting that no statistical significance exists in a set of observations.