The Advertising Manager for Roadside Restaurants, Inc If She Feels That There Is a 60 Percent Chance

question 35

Multiple Choice

The advertising manager for Roadside Restaurants, Inc., needs to decide whether to spend this month's budget for advertising on print media, television, or a mixture of the two. She estimates that the cost per thousand "hits" (readers or viewers) will vary depending upon the success of the new cable television network she plans to use, as follows: $$\begin{array} { | l | l | l | l|} \hline { \text { Strategy } } & { \text { Cable Network } } \\\hline & \text { Successful } & &\text { Failure } \\ \hline \text { Print } & \$ 10 && 10 \\\hline \text { Mixed } & 4 & &14 \\\hline \text { Television } & 1 && 21 \\\hline\end{array}$$ If she feels that there is a 60 percent chance that the new cable network will be successful, what is her expected value (per thousand "hits") of perfect information?

• A) $3.40
• B) $4.60
• C) $8.00
• D) $9.00
• E) $10.00

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Definitions:

Corporate Brand

The overall identity of a corporation that reflects its values, reputation, and products, recognized and valued by consumers.

Product Line

A range of related products offered by a single company, designed to serve different customer needs while maintaining a certain standard or characteristic.

Product Line Extensions

The practice of expanding an existing product line by introducing new variants or sizes, aiming to target different customer segments or adapt to changing market conditions.

Brand Awareness

The degree to which customers know about and can identify the special attributes or image associated with a specific brand's goods or services.