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Author Question: Explain how to calculate the return on investment for a sampling ... (Read 85 times)

appyboo

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on: Jun 29, 2018
Explain how to calculate the return on investment for a sampling investment.

Question 2

One function of advertising is to increase brand salience, which means enriching the memory trace for a brand such that the brand comes to mind in relevant choice situations.
 a. True
  b. False
 Indicate whether the statement is true or false


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macybarnes

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Table 19.2 gives the steps for calculating the ROI for a sampling investment:
1 . Determine the total cost of sampling. This includes the cost of the sample goods plus the costs of distribution.
2 . Calculate the profit per unit. Do this by determining the average number of annual uses of the product and multiplying this by the per-unit profit.
3 . Calculate the number of converters needed for the sampling program to break even. Converters are individuals who after sampling the brand become users.
4 . Determine the effectiveness of the sampling. To be successful, the conversion rate must exceed the break-even rate.

Answer to Question 2

True


appyboo

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

elyse44

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Reply 3 on: Yesterday
Gracias!

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