Managing Ashland MultiComm ServicesThe Ashland MultiComm Services (AMS) marketing department wants to increase subscriptions for its...

Managing Ashland MultiComm ServicesThe Ashland MultiComm Services (AMS) marketing department wants to increase subscriptions for its 3-For-All telephone, cable, and Internet combined service. AMS marketing has been conducting an aggressive direct-marketing campaign that includes postal and electronic mailings and telephone solicitations. Feedback from these efforts indicates that including premium channels in this combined service is a very important factor for both current and prospective subscribers. After several brainstorming sessions, the marketing department has decided to add premium cable channels as a no-cost benefit of subscribing to the 3-For-All service.The research director, Mona Fields, is planning to conduct a survey among prospective customers to determine how many premium channels need to be added to the 3-For-All service in order to generate a subscription to the service. Based on past campaigns and on industry-wide data, she estimates the following:

Number of Free Premium Channels Probability of Subscriptions 00.021

0.042

0.063

0.074

0.085

2. Instead of offering no premium free channels as in Problem 1, suppose that two free premium channels are included in the 3-For-All service offer. Given past results, what is the probability that

a. fewer than 3 customers will subscribe to the 3-For-All service offer?

b. 0 customers or 1 customer will subscribe to the 3-For-All service offer?

c. more than 4 customers will subscribe to the 3-For-All service offer?

d. Compare the results of (a) through (c) to those of 1.

e. Suppose that in the actual survey of 50 prospective customers, 6 customers subscribe to the 3-For-All service offer. What does this tell you about the previous estimate of the proportion of customers who would subscribe to the 3-For-All service offer?

f. What do the results in (e) tell you about the effect of offering free premium channels on the likelihood of obtaining subscriptions to the 3-For-All service?

3. Suppose that additional surveys of 50 prospective customers were conducted in which the number of free premium channels was varied. The results were as follows:

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

MANAGING ASHLAND MULTI-COMM SERVICES The AMS technical services department has embarked on a quality improvement effort....

MANAGING ASHLAND MULTI-COMM SERVICES The AMS technical services department has embarked on a quality improvement effort. It’s first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale in which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The...

The AMS technical services department has embarked on a quality improvement effort. Its first project relates...

The AMS technical services department has embarked on a quality improvement effort. Its first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The upload speed is considered acceptable...

Continuing the quality improvement effort first described in the chapter 6 Managing Ashland Multicomms services case,...

Continuing the quality improvement effort first described in the chapter 6 Managing Ashland Multicomms services case, the target upload speed for AMS internet service subscribers has been monitored.As before, upload speeds are measured on a standard scale in which the target value is 1.0. Data collected over the past year indicate that the upload speeds are approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, at 25 random times, the upload speed is...

You are managing a division of a large company. The marketing department submits a report to...

You are managing a division of a large company. The marketing department submits a report to you about the demand for the product you manage. The report includes the following estimated demand function: Qd =2,910.0 -11.3 P + 0.050 INCOME- 3.0 (100.4) (3.2) (0.012) (1.0) where P is the price of your product, INCOME is average income, Upper P Subscript other is the price of a related product, and the numbers in parentheses are the standard errors of the estimated...

A brewery wants to conduct a Marketing campaign. Therefore the marketing department is interested in the...

A brewery wants to conduct a Marketing campaign. Therefore the marketing department is interested in the unknown Proportion of college students that buy beer. 425 customers were asked, and 351 of them where college students. a) Calculate the 99% Confidence Interval for the unknown proportion of buyers that are college students b) In order to conduct the campaign, the executive board demands, that more than 85% of the customers are college students. Test if this level is fulfilled up until...

In its continuing study of the 3-For-All subscription solicitation process, a marketing department team wants to...

In its continuing study of the 3-For-All subscription solicitation process, a marketing department team wants to test the effects of two types of structured sales presentations (personal formal and personal informal) and the number of hours spent on telemarketing on the number of new subscriptions. The staff has recorded these data for the past 24 weeks in AMS14. Analyze these data and develop a multiple regression model to predict the number of new subscriptions for a week, based on the...

In its continuing study of the 3-For-All subscription solicitation process, a marketing department team wants to...

The transit authority wants to increase its bus services. The transit authority would purchase 300 new...

The transit authority wants to increase its bus services. The transit authority would purchase 300 new energy-efficient buses. They would replace the 150 buses now in operation, doubling the size of the transit system. At a unit cost of $800,000 for each bus, the total expenditure would be $240 million. The projected salvage value of the old buses is $20,000 per bus, leaving $237 million to be financed by the transit authority. . The transit authority would purchase the buses,...

Your marketing department believes it has a new commercial that will increase the percent of people...

Your marketing department believes it has a new commercial that will increase the percent of people who plan on purchasing from one of your stores in the next month. You take a sample of people and before you show them the new commercial, ask them if they are planning on purchasing from one of your stores in the next month. You then show them the new commercial and follow up by asking again if they plan on purchasing from one...

Virginia State University wants to raise its tuition and increase its revenue. It wants consumers that...

Virginia State University wants to raise its tuition and increase its revenue. It wants consumers that are A. price sensitive B. not price sensitive 7. Moe's restaurant wants to sell more burritos by lowering its price. They want consumers that are not price sensitive.T/F 8. If you want to raise your price and increase your revenues, you need to have consumers that are: A. inelastic B. elastic C. unitary elastic 9.There are no close substitutes for gasoline. For this reason, we can infer that the...

Subjects