Phase 1 Reviewing the results of its research, the marketing department team concluded that a segment of

Question:

Phase 1

Reviewing the results of its research, the marketing department team concluded that a segment of Ashland households might be interested in a discounted trial subscription to the AMS 3-For-All cable/phone/Internet service. The team decided to test various discounts before determining the type of discount to offer during the trial period. It decided to conduct an experiment using three types of discounts plus a plan that offered no discount during the trial period:

1. No discount for the 3-For-All cable/phone/Internet service. Subscribers would pay $24.99 per week for the 3-For-All cable/phone/Internet service during the 90-day trial period.
2. Moderate discount for the 3-For-All cable/phone/Internet service. Subscribers would pay $19.99 per week for the 3-For-All cable/phone/Internet service during the 90-day trial period.
3. Substantial discount for the 3-For-All cable/phone/Internet service. Subscribers would pay $14.99 per week for the 3-For-All cable/phone/Internet service during the 90-day trial period.
4. Discount restaurant card. Subscribers would be given a special card providing a discount of 15% at selected restaurants in Ashland during the trial period.

Each participant in the experiment was randomly assigned to a discount plan. A random sample of 100 subscribers to each plan during the trial period was tracked to determine how many would continue to subscribe to the 3-For-All service after the trial period. The following table summarizes the results.

1. Analyze the results of the experiment. Write a report to the team that includes your recommendation for which discount plan to use. Be prepared to discuss the limitations and assumptions of the experiment.

CONTINUE SUBSCRIPTIONS AFTER TRIAL PERIOD Yes No Total DISCOUNT PLANS No Moderate Substantial Restaurant

PHASE 2
The marketing department team discussed the results of the survey presented in Chapter 8, on pages 277 and 278. The team realized that the evaluation of individual questions was providing only limited information. In order to further understand the market for the 3-For-All cable/phone/Internet service, the data were organized in the following contingency tables:

HAS AMS TELEPHONE SERVICE Yes No Total TYPE OF SERVICE Basic Enhanced Total TYPE OF SERVICE Basic Enhanced

DISCOUNT Yes No Total GOLD CARD Yes No Total Toll-Free Phone 11 219 230 Toll-Free Phone 10 220 230 METHOD FOR

2. Analyze the results of the contingency tables. Write a report for the marketing department team, discussing the marketing implications of the results for Ashland MultiComm Services.

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