Two Companies Are About to Make a Decision Regarding an Investment

question 36

Multiple Choice

Two companies are about to make a decision regarding an investment in a new promotional campaign. Company A will either advertise in all media or advertise in newspapers only. Company B will either run a sweepstake or run a big sale. The payoff matrix is shown below. $\begin{array} { l l c c } \hline && { \text { Company B } } \\& &\mathrm { B } _ { 1 } : \text { Run a } & \mathrm { B } _ { 2 } : \text { Run a } \\& &\text { sweepstakes } & \text { big sale } \\\hline & \begin{array} { l } \text { A1: Advertise } \\\text { in all media }\end{array} & 4 &-1 \\\text { Company A } & \begin{array} { l } \text { A2: Advertise } \\\text { in newspapers only }\end{array} & - 2 & 1 \\\hline\end{array}$
Determine the proportion of time that Company B should employ each strategy.

• A) B₁: 12.5%, B₂: 87.5%
• B) B₁: 25%, B₂: 75%
• C) B₁: 37.5%, B₂: 62.5%
• D) B₁: 50%, B₂: 50%
• E) B₁: 62.5%, B₂:37.5%

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Definitions:

Consumer Demographics

The statistical aspects of consumers such as age, income, gender, and education, used by businesses to identify target markets.

Industry Trends

Patterns and shifts in the market or industry behavior that demonstrate the general direction in which something is developing or changing.

Salesforce Einstein

An artificial intelligence technology developed by Salesforce to enhance CRM (Customer Relationship Management) tasks through predictive analytics and machine learning.

Third-party Solution

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