Question: An apple juice manufacturer has developed a new product a liquid

An apple juice manufacturer has developed a new product—a liquid concentrate that produces 1 liter of apple juice when mixed with water. The product has several attractive features. First, it is more convenient than bottled apple juice, which is the way apple juice is currently sold. Second, because the apple juice that is sold in cans is actually made from concentrate, the quality of the new product is at least as high as that of bottled apple juice. Third, the cost of the new product is slightly lower than that of bottled apple juice. The marketing manager has to decide how to market the new product. She can create advertising that emphasizes convenience, quality, or price. To facilitate a decision, she conducts an experiment in three different small cities. In one city, she launches the product with advertising stressing the convenience of the liquid concentrate (e.g., easy to carry from store to home and takes up less room in the freezer).
In the second city, the advertisements emphasize the quality of the product (“average” shoppers are depicted discussing how good the apple juice tastes). Advertising that highlights the relatively low cost of the liquid concentrate are used in the third city. The number of packages sold weekly is recorded for the 20 weeks following the beginning of the campaign. The marketing manager wants to know whether differences in sales exist between the three advertising strategies.

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  • CreatedFebruary 03, 2015
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