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Problem 100

# Your television advertising campaign seems to have been very persuasive: 10,000 people who saw the ad purchased your product, while only 2,000 people purchased the produc without seeing the ad. Explain how additional data could show that your ad campaign was, in fact, unpersuasive.

Expert verified
In order to evaluate whether the ad campaign was persuasive or not, additional data, such as the total number of people who did not purchase the product and potential differences in the target audiences, must be considered. While the purchase rates of 10% for those who saw the ad and 4% for those who didn't may initially suggest the campaign's effectiveness, it is possible that other external factors or pre-existing inclinations of the audience may have played a role in their decision to buy the product. A more in-depth analysis is necessary to determine the true impact of the advertising campaign.
See the step by step solution

## Step 1: Identify Possible Additional Data

To disprove the effectiveness of the advertising campaign, we must look for additional data that could suggest other factors that could have contributed to the difference in sales. Some possible data points to consider include the total number of people who saw the ad and didn't buy the product, the total number of people who didn't see the ad and didn't buy the product, and external factors such as price changes, seasonality, or market trends.

## Step 2: Develop a Hypothetical Scenario

Let's develop a hypothetical scenario to examine how the ad campaign could have been less effective than it initially seems. Suppose we have the following data: 1. Total number of people who saw the ad and purchased the product: 10,000 2. Total number of people who saw the ad and didn't purchase the product: 90,000 3. Total number of people who didn't see the ad and purchased the product: 2,000 4. Total number of people who didn't see the ad and didn't purchase the product: 48,000 5. No significant price changes, seasonality, or market trends during the campaign

## Step 3: Calculate Purchase Rates

Next, we need to calculate the purchase rates for people who saw the ad and those who didn't see the ad. Purchase rate for people who saw the ad: $\frac{10,000}{10,000+90,000}\times100\% = \frac{10,000}{100,000}\times100\% = 10\%$ Purchase rate for people who didn't see the ad: $\frac{2,000}{2,000+48,000}\times100\% = \frac{2,000}{50,000}\times100\% = 4\%$

## Step 4: Analyzing the Results

By comparing the purchase rates (10% for those who saw the ad and 4% for those who didn't), it might initially seem that the ad campaign was effective. However, we must consider other possible explanations for this difference. One possibility is that the people who saw the ad were already more inclined to purchase the product, due to factors such as their demographics, interests, or prior exposure to the brand. In this scenario, the ad would not have significantly increased their likelihood of buying the product. In other words, the difference in purchase rates might be due to differences in the target audiences rather than the ad's persuasiveness.

## Step 5: Conclusion

Although the given data seems to suggest the ad campaign was successful, additional data, such as the total number of people who did not purchase the product, could show that the difference in purchase rates may be due to other factors. A more in-depth analysis of the target audiences and other external factors is needed to evaluate the true effectiveness of the ad campaign.

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