A+ Rental Cars corporate office offers each franchise location $20,000 each month to spend on local advertising.
Question:
A+ Rental Cars corporate office offers each franchise location $20,000 each month to spend on local advertising. Some franchises take advantage of this offer, while others do not. We have gone back and forth on whether or not this makes sense. Does it make sense to spend money on local advertising?
You may need to run new regressions or analyze the data provided in assignment 2 in different ways to help you answer this question. This data analysis can be done as a learning team; however, each learner should write their own response.
In your memo, explain your answer to the question above. If you feel that local advertising makes sense, what can you say in regard to optimal mix of advertisement types? Additionally, please address these questions: Are there factors missing that would help you improve your analysis of whether local advertising makes sense? What would be your approach to improve the quality of your analysis?