The shop's decision hinges on whether renewing this specific advertisement is worth the cost. Every relevant question must connect to either the
effectiveness of this ad or the
financial impact of keeping or canceling it.
A. How does the cost of the advertisement compare to the profit from purchases made by those who have responded to it?Relevant. This directly measures whether the ad is generating enough revenue to justify its cost — the core financial question the shop needs to answer.
B. Are there other trade publications that attract the shop's typical clientele in which an advertisement would be likely to reach prospective customers at the same cost?Relevant. This helps the shop evaluate whether canceling and advertising elsewhere would be a better use of the same budget — a direct alternative to the current decision.
C. Is a significant proportion of the shop's competitors satisfied with the effect of their advertisements in trade publications?Least relevant. What competitors experience tells us nothing about this specific shop's situation. The shop already has its own data showing most sales come from non-readers of this publication. Whether competitors are satisfied with their ads in other or even the same publications has no bearing on whether this shop should renew this specific advertisement.
D. How many buyers who responded to the advertisement were professional antique dealers who generally make relatively expensive purchases?Relevant. If the minority who did respond to the ad are high-value customers making expensive purchases, the ad may still be financially worthwhile despite low overall response rates.
E. Is any significant change expected in the pattern of the trade publication's circulation?Relevant. If circulation is expected to grow significantly and reach more of the shop's target customers, that would affect whether renewing makes sense going forward.
Ans CBunuel
An antique and curiosity shop is weighing the advantages of renewing its regular advertisement in a monthly trade publication. The shop originally placed the advertisement in order to increase business, but found that the majority of its sales are made to those who do not read the publication and have not seen the ad. The shop is considering canceling the advertisement in that publication in order to save money.
The answer to which of the following questions would be LEAST relevant to the shop's decision?
(A) How does the cost of the advertisement compare to the profit from purchases made by those who have responded to it?
(B) Are there other trade publications that attract the shop's typical clientele in which an advertisement would be likely to reach prospective customers at the same cost?
(C) Is a significant proportion of the shop's competitors satisfied with the effect of their advertisements in trade publications?
(D) How many buyers who responded to the advertisement were professional antique dealers who generally make relatively expensive purchases?
(E) Is any significant change expected in the pattern of the trade publication's circulation?