Scenario 5

question 36

Multiple Choice

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

• A)the collection of secondary data used in a descriptive study
• B)information feedback used in an exploratory study.
• C)the collection of secondary data used in an exploratory study.
• D)the collection of primary data used in a descriptive study.
• E)the defining and locating problems through an observational technique.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.

Supplies

Items used in the day-to-day operations of a business, often consumable in nature, such as office supplies, manufacturing materials, or maintenance necessities.

Equipment

Tangible property used in the operations of a business, such as machinery and tools, which are not intended for sale.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease agreements to calculate the present value of minimum lease payments.