Experiment Assumptions

Experiment Assumptions 150 150 Affordable Capstone Projects Written from Scratch

Reviewing the results of its research, the marketing department team concluded that a segment of Ashland households might be interested in a discounted trial subscription to the AMS 3-For-All cable/phone/Internet service. The team decided to test various discounts before determining the type of discount to offer during the trial period. It decided to conduct an experiment using three types of discounts plus a plan that offered no discount during the trial period:

 

  1. No discount for the 3-For-All cable/ phone/ Internet service. Subscribers would pay $24.99 per week for the 3-For-All cable/ phone/ Internet service during the 90-day trial period.

 

  1. Moderate discount for the 3-For-All cable/phone/Internet service. Subscribers would pay $19.99 per week for the 3-For-All cable/phone/Internet service during the 90-day trial period.

 

  1. Substantial discount for the 3-For-All cable/phone/Internet service. Subscribers would pay $14.99 per week for the 3-For-All cable/phone/Internet service during the 90-day trial period.

 

  1. Discount restaurant card. Subscribers would be given a Gold card providing a discount of 15% at selected restaurants in Ashland during the trial period. Each participant in the experiment was randomly assigned to a discount plan. A random sample of 100 subscribers to each plan during the trial period was tracked to determine how many would continue to subscribe to the 3-For-All service after the trial period. Table in Figure 10 summarizes the results.

 

TABLE in Figure 10 Number of Subscribers Who Continue Subscriptions After Trial Period with Four Discount Plans

 

 

 

 

Figure 10

 

Analyze the results of the experiment. Write a report to the team that includes your recommendation for which discount plan to use. Be prepared to discuss the limitations and assumptions of the experiment.


 

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