The Springfield Bank Received 1500 Inquires Following Its Latest Advertisement

question 29

Essay

The Springfield Bank received 1500 inquires following its latest advertisement describing its "establish a Certificate of Deposit (CD)-get a free CD (compact disk)" promotion in the Springfield Shopper, a local newspaper. The most recent similar ad in a similar advertising campaign in the Brockman Business Newsletter, a local business publication generated 500 inquires. Each ad in the Springfield Shopper costs $500. Each ad in the Brockman Business Newsletter costs $125. Inquires from both publications have the same success rate in turning inquires into sales.
(a.) Assuming that additional ads will generate similar response rates, is Springfield Bank running an optimal mix of ads in the Springfield Shopper and the Brockman Business Newsletter? Why or why not?
(b.) If you claim that the Springfield Bank is currently running an optimal mix of ads clearly explain why they are using an optimal mix of ads. If you claim that the Springfield Bank is currently not running an optimal mix of ads clearly explain how better manage the Springfield Bank.

---

Definitions:

Internalized Attitudes

Personal views and feelings that individuals have deeply incorporated into their belief systems, often influencing their behavior unconsciously.

Ethical

Pertaining to or dealing with morals, the principles of morality pertaining to right and wrong conduct.

Moral

Pertaining to principles or rules of right conduct or the distinction between right and wrong; ethical.

Emotional Maturity

The ability to understand, manage, and express one's emotions effectively and appropriately.