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:

a. 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.

b. 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.

c. 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.

d. 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.

Phase 2

The marketing department team discussed the results of the survey presented in Module 6, in the Discussion Question. The team realized that the evaluation of individual questions was providing only limited information. In order to further understand the market for the 3-For-All cable/ phone/ Inter-net service, the data were organized in the following contingency tables:

Figure 11

Figure 12

Figure 13

Analyze the results of the contingency tables. Write a report for the marketing department team and discuss the marketing implications of the results for Ashland MultiComm Services.