
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test
market within the United States. The company expects to achieve strong distribution with an ACV%
of 89%. Market research shows that the marketing mix will result in an awareness rate of 40%, a trial
rate of 26%, and a repeat purchase rate of 37%. The population for the test market is estimated at
1,360,000 households.
All-Over Shampoo executives are also considering partially funding the advertising increase by not
paying the high slotting fees associated with getting their new 2-in-1 product into all major grocery
retailers, likely reducing their distribution to 72%. What would be the value for trials as a
percentage of population under this scenario if they also implemented the advertising plan
resulting in awareness of 46%?
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Transcribed Image Text:All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test
market within the United States. The company expects to achieve strong distribution with an ACV%
of 89%. Market research shows that the marketing mix will result in an awareness rate of 40%, a trial
rate of 26%, and a repeat purchase rate of 37%. The population for the test market is estimated at
1,360,000 households.
All-Over Shampoo executives are also considering partially funding the advertising increase by not
paying the high slotting fees associated with getting their new 2-in-1 product into all major grocery
retailers, likely reducing their distribution to 72%. What would be the value for trials as a
percentage of population under this scenario if they also implemented the advertising plan
resulting in awareness of 46%?
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by Bartleby Expert
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Transcribed Image Text:All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test
market within the United States. The company expects to achieve strong distribution with an ACV%
of 89%. Market research shows that the marketing mix will result in an awareness rate of 40%, a trial
rate of 26%, and a repeat purchase rate of 37%. The population for the test market is estimated at
1,360,000 households.
All-Over Shampoo executives are also considering partially funding the advertising increase by not
paying the high slotting fees associated with getting their new 2-in-1 product into all major grocery
retailers, likely reducing their distribution to 72%. What would be the value for trials as a
percentage of population under this scenario if they also implemented the advertising plan
resulting in awareness of 46%?
Solution
by Bartleby Expert
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