Assume that in a marketing study it has been found that on a fall Saturday afternoon 20% of adult men watch sports programming on network A from 1:00pm to 2:00pm, 25% watch on network C from 2:00pm to 3:00pm, and 10% watch on both networks. For simplicity, assume that viewers of these programs are sure to see advertisements if they are watching a program. If Chicken Cluck's Restaurants advertise only on network C during the sports programming segment, (a) what is the probability that the ad will be seen by a randomly chosen adult man? (b) what would be the probability if they advertise on both networks? (c) If they advertise on both networks, what is the probability that an ad will be seen only on network A?
Answer:
P(A) = 0.20
P(B) = 0.25
P(A and B) = 0.10
a)
Given,
To determine the probability that the ad will be seen by a randomly chosen adult man
i.e.,
probability that he watches C
= 0.25
b)
To determine the probability if they advertise on both networks
Probability P(A or B) = P(A) + P(B) - P(A and B)
substitute values
= 0.2 + 0.25 - 0.1
P(A or B) = 0.35
Hence the probability if they advertise on both networks is 0.35
c)
To determine the probability that an ad will be seen only on network A
P(Ad will be seen only on A | Advertise on both networks) = P(A) / P(A or B)
= 0.20 / 0.35
= 0.5714
Required probability = 0.5714
Assume that in a marketing study it has been found that on a fall Saturday afternoon...
SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...