Evaluate the effectiveness of a new television advertisement

Assignment Help Marketing Management

Reference no: EM131065153

LARKIN CORPORATION

Larkin Corporation conducted a test designed to evaluate the effectiveness of a new television advertisement for one of its household products. The particular television advertisement was shown in a test market for a two-week period. In a follow-up study, randomly selected individuals were contacted by telephone and asked a series of questions to determine whether they could recall the message in the television advertisement and how likely they were to purchase the product. The test market study provided the following probabilities:

Individual could recall the message - 0.40

Individual could not recall the message - 0.60

Further, response to the question of how likely they were to purchase the product provided the following probabilities:

IF	Purchase
IF	Definitely No	Uncertain	Definitely Yes
Could recall the message	0.30	0.30	0.40
Could not recall the message	0.50	0.40	0.10

For example, if an individual could not recall the message there is a 10% chance that they would definitely purchase the household product.

Larkin Corporation management is interested in knowing what is the overall probability of an individual answering "definitely yes" to the likelihood of purchase question using simulation for 1,000 trials.

Reference no: EM131065153

Questions Cloud

Bond to be higher or lower than its coupon rate : A $1,000 par value bond is for sale. Its coupon rate is 3.50% and it will be outstanding for 4 years. Without doing any math, do you think the price (value) of this bond is going to be higher or lower than $1,000 ? What is the current yield on this b..

The change in the century changed the art : THE 20TH CENTURY SAW MORE CHANGE THAN ANY CENTURY BEFORE. FROM TECHNOLOGY TO SCIENCE TO ART TO THE VERY MAKE UP OF THE WORLD. THE OLD IS GIVING WAY TO THE NEW.

What is the 2011-2012 tuition in 2001 dollars : n-state tuition and fees at Virginia Commonwealth University (VCU) was $9517 for the 2011-12 academic year. The CPI for 2011 was 224.9 and the CPI for 2001 was 177.1. What is the 2011-2012 tuition in 2001 dollars

Find the average time that an item is on the shelf : Find the proportion of customers that go away empty handed. Find the average time that an item is on the shelf

Evaluate the effectiveness of a new television advertisement : Larkin Corporation conducted a test designed to evaluate the effectiveness of a new television advertisement for one of its household products

Motorist pay for fuel-efficient six-speed transmission : A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four-speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and ga..

Investment opportunity that involves a lease revenue : You're presented with a $1MM investment opportunity that involves a lease revenue of $110,000 per year for 5 years bumping to $125,000 per year for the next 5 years. You estimate the sale price of the asset to be $1.2 MM at the end of year 10. If the..

Cost of equity using a variety of methods : The PMBA Corp (beta = 1.3) is trying to determine it cost of equity. You have been asked to give the cost of equity using a variety of methods. The methods to be used are the CAPM, and the DCF model. Calculate the three costs on equity. Explain the d..

What is the corresponding value of the distance a : If the distance a can be varied between 0 and 40 in., what is the maximum possible value of Qcr What is the corresponding value of the distance a?

User Account

All Pages