Fundamentals of Information Systems
Fundamentals of Information Systems
8th Edition
ISBN: 9781305082168
Author: Ralph Stair, George Reynolds
Publisher: Cengage Learning
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Chapter 8, Problem 7LO
Program Plan Intro

The key features of Alternative System development life cycle.

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Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Alan currently has an awareness level of 80% . While an important product for Andrews, Alan’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Alan loses one-third of its awareness each year, what will Alan’s awareness level be next year? a) 79% b) 53% c) 74% d) 58%
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