Question

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level?

A. There is nothing to do I have already reached as much awareness as I could

B. Spend the same amount of money spent the previous year to reach the same percentage of awareness this year

C. I would only need to create 33% new awareness to maintain 100% this year

D. I need to spend at least half of the money spent the previous year to reach 75% of the population

E. I would scale back promotional expenditures to about $1,400,000 to maintain 100% awareness

Answer 1

c. I would only need to create 33% new awareness to maintain 100% this year.

Explanation:

This is because as a rule one-third (33%) of the customers who had awareness, forget about it during next year. Hence, using the above explanation, the following formula can be used to derive the result:

Starting level of awareness = Percentage awareness last year - (33% X Percentage awareness last year) = 100% - (33% X 100%) = 100% - 33% = 77%

Hence, the starting level of awareness during next year would be 77% only, therefore, in order to maintain 100% awareness, the company need to create = 100% - 77% = 33% awareness during this year.