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How much does Advertising Impact Market Penetration?

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How much does advertising impact market penetration? To assess the impact of advertising in the tobacco industry, a study looked at the amount of money spent on advertising a particular brand of cigarettes and brand preference among adolescents and adults. The data are shown below: (Source: Center for Disease Control Website).

Brand Advertising ($ millions) % Adolescents % Adults
Marlboro 75 60 23.5
Camel 43 13.3 6.7
Newport 35 12.7 4.8
Kool 21 1.2 3.9
Winston 17 1.2 3.9
Benson & Hedges 4 1 3
Salem 3 0.3 2.5

Create scatterplots below: (do not connect the dots, but show a "line of best fit")
Adolescents Adults

a) Which variable is the independent variable?

b) Which variable is the dependent variable?

Then: with the dependent variable on the vertical (y) axis
c) Create a scatter plot of advertising and adolescent brand preference. Do you think there is a linear relationship between the two variables? Why or why not?

d) Create a scatter plot of advertising and adult brand preference. Do you think there is a linear relationship between the two variables? Why or why not?

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So what is a scatter plot? It is a way for a person to see the causation (relationship) between two variables.

A scatterplot can show various kinds of relationships, including positive (rising), negative (falling), and no relationship. If the pattern of dots slopes from lower left to upper right, it suggests a positive correlation between the variables being studied. If the pattern of dots slopes from upper left to lower right, it suggests a negative correlation. A line of best fit can be drawn in ...

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Has TV Advertising Lost Power?

Review Essay Question for Exam:

Your company is considering the use of television to advertise its product. The CEO has asked you and the other members of the marketing department (your classmates) to evaluate this option. In particular you are to debate the following issue: Has TV advertising lost power?

Long deemed the most successful advertising medium, television advertising has received increased criticism as being too expensive and, even worse, no longer as effective as it once was. Critics maintain that consumers tune out too many ads by zipping and zapping and that it is difficult to make a strong impression. The future, claim some, is with online advertising. Supporters of TV disagree, contending that the multisensory impact of TV is unsurpassed and that no other media option offers the same potential impact.

Compare TV advertising with one other promotional channel.

Please provide a summary, and references. I need a sample so that I know how to format my answer on the exam.

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