Operations Research : Applications and Algorithms
4th Edition
ISBN: 9780534380588
Author: Wayne L. Winston
Publisher: Brooks Cole
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In three years, assuming the competitive environment remains unchanged, how many units of Bat will Baldwin be selling in the Nano market segment?
a) 639
b) 561
c) 431
d) 716
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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