12 "CASES Managing Ashland MultiComm Services TABLE AMS12.1 Number of Subscribers Who Continue Subscriptions after Trial Period with Four Discount Plans PHASE 1 Reviewing the results of its research,...

Extracted text: 12 "CASES Managing Ashland MultiComm Services TABLE AMS12.1 Number of Subscribers Who Continue Subscriptions after Trial Period with Four Discount Plans PHASE 1 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 CONTINUE DISCOUNT PLANS SUBSCRIPTIONS service. The team decided to test various discounts before deter- AFTER TRIAL No Moderate Substantial Restaurant mining 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: PERIOD Discount Discount Discount Card Total Yes 24 30 38 51 143 No 76 70 62 49 257 1. No discount for the 3-For-All service. Subscribers would pay $99.99 per month for the 3-For-All service during the trial period. Total 100 100 100 100 400 1. 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. 2. Moderate discount for the 3-For-All service. Subscribers would pay $79.99 per month for the 3-For-All service during the trial period. 3. Substantial discount for the 3-For-All service. Subscribers would pay $59.99 per month for the 3-For-All service during the trial period. PHASE 2 The marketing department team discussed the results of the survey presented in Chapter 8, on pages 302–303. The team realized that the evaluation of individual questions was provid- ing only limited information. In order to further understand the market for the 3-For-All service, the data were organized in the following contingency tables: 4. Discount restaurant card. Subscribers would be given a spe- cial 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 HAS AMS INTERNET SERVICE trial period. Table AMS 12.1 summarizes the results. HAS AMS SMARTPHONE Yes No Total Yes 55 28 83 No 207 128 335 Total 262 156 418