Advertising with reader-response cards. “Reader-response

Chapter , Problem 15E

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QUESTION:

Problem 15E

Advertising with reader-response cards. “Reader-response cards” are used by marketers to advertise their product and obtain sales leads. These cards are placed in magazines and trade publications. Readers detach and mail in the cards to indicate their interest in the product, expecting literature or a phone call in return. How effective are these cards (called “bingo cards” in the industry) as a marketing tool? Performark, a Minneapolis business that helps companies close on sales leads, attempted to answer this question by responding to 17,000 card-advertisements placed by industrial marketers in a wide variety of trade publications over a 6-year period. Performark kept track of how long it took for each advertiser to respond. A summary of the response times is given in the following table.

Advertiser’s Response Time

Percentage

Never responded

21

13–59 days

33

60–120 days

34

More than 120 days

12

Total

100

a. Describe the variable measured by Performark.

b. These results were displayed in the form of a pie chart. Reconstruct the pie chart from the information given in the table.

c. How many of the 17,000 advertisers never responded to the sales lead?

d. Advertisers typically spend at least a million dollars on a reader-response card marketing campaign. Many industrial marketers feel these “bingo cards” are not worth their expense. Does the information in the pie chart, part b, support this contention? Explain why or why not. If not, what information can be gleaned from the pie chart to help potential “bingo card” campaigns?

Questions & Answers

QUESTION:

Problem 15E

Advertising with reader-response cards. “Reader-response cards” are used by marketers to advertise their product and obtain sales leads. These cards are placed in magazines and trade publications. Readers detach and mail in the cards to indicate their interest in the product, expecting literature or a phone call in return. How effective are these cards (called “bingo cards” in the industry) as a marketing tool? Performark, a Minneapolis business that helps companies close on sales leads, attempted to answer this question by responding to 17,000 card-advertisements placed by industrial marketers in a wide variety of trade publications over a 6-year period. Performark kept track of how long it took for each advertiser to respond. A summary of the response times is given in the following table.

Advertiser’s Response Time

Percentage

Never responded

21

13–59 days

33

60–120 days

34

More than 120 days

12

Total

100

a. Describe the variable measured by Performark.

b. These results were displayed in the form of a pie chart. Reconstruct the pie chart from the information given in the table.

c. How many of the 17,000 advertisers never responded to the sales lead?

d. Advertisers typically spend at least a million dollars on a reader-response card marketing campaign. Many industrial marketers feel these “bingo cards” are not worth their expense. Does the information in the pie chart, part b, support this contention? Explain why or why not. If not, what information can be gleaned from the pie chart to help potential “bingo card” campaigns?

ANSWER:

Solution:

Step 1 of 2:

A minneapolis business that helps companies close on sales leads, attempted to answer the question “How effective bingo cards” by responding to 17,000 card advertisements placed by industrial marketers in a wide variety of trade publications over a 6-year period.

The summary of the response times are given.

Advertiser’s Response Time

Percentage

Never Responded

21

13-59 days

33

60-120 days

34

More than 120 days

12

Total

100

  1. We have to describe the variable measured by performark.
  2. We have to construct a pie chart for the given results.
  3. We have to find how many of the 17,000 advertisers never responded to the sales lead.
  4. We have to interpret the pie chart.


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