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

question 58

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) Within the ______ portion of its advertising plan,American Express suggests that the most important  outcome of the campaign will be for Visa customers to start switching to American Express in this market segment.

• A) strategy 
• B) execution 
• C) situation analysis 
• D) objectives

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Definitions:

Utility Schedule

A utility schedule is a table that shows the relationship between quantities of a good or service consumed and the utility or satisfaction derived from that consumption.

Marginal Utility

The additional satisfaction or utility gained from consuming an extra unit of a good or service.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.