DuPont conducted a field experiment for an improved version of Teflon several years after they first introduced
Question:
DuPont conducted a field experiment for an improved version of Teflon several years after they first introduced Teflon. Four cities received 10 day-time commercial minutes per week during the fall months, five cities received 5 minutes per week, and four cities (the control group) received no advertising. Cities were randomly assigned to each of the three test conditions. The sales measure was a purchase of Teflon cookware as reported by telephone interviews with 1,000 housewives in each of the test cities. The total purchases turned out to be about 30 percent higher in the heavy-advertising cities than in those cities with no or low advertising, but there was no real difference between the low and no-advertising groups. Critique this test. What validity problems do you see? What changes would you make? Would you conduct the same test if the product change had been out for three years?
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Such a field experiment should be concerned with a External contamination such as competitor act...View the full answer
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The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.