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Scenario 5

question 36

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Scenario 5.1 Use the following to answer the questions.Because of the development of optical scanners and cable television, marketing researchers can now test the effectiveness of advertising more precisely. Volunteers in a minimum of six cities are offered food discounts in return for allowing marketing research firms to monitor grocery purchases and send trial commercials to their homes through cable television.The research subjects shop only at stores equipped with UPC scanners, and their purchases are identified by a special card. Respondents are also told that some of the commercials they see on cable television may differ from those seen by their neighbors. Buying patterns are then compared. For example, Kashi cereals tested a Crunchy Wheat promotion using this system. Half of the 5,000 participating homes in one city saw a commercial announcing the promotion; the other half saw a commercial that did not mention the promotion. Kashi used scanner data to evaluate the promotion's success and offered the commercials nationwide.
-Refer to Scenario 5.1. Kashi's testing of the Crunchy Wheat promotion is an example of


Definitions:

Mosquito Control

A management strategy to regulate or eliminate mosquito populations to reduce their damage to human health, economies, and enjoyment.

Marginal Benefit

The additional benefit gained from consuming or producing one extra unit of a good or service.

Optimal Number

The most favorable quantity that achieves the best outcome under specific conditions.

Individual Marginal Benefit

The additional benefit received by an individual from consuming one more unit of a good or service.

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