Question

In order to test a new customer loyalty program, a supermarket sends an email to its current customers in one of its regions of operation, inviting them to opt into the new program. After several months, management observes that participants in the new program are much more frequent shoppers than the average customer. Which of the following can management conclude from this experiment?A) Introducing the new loyalty program in all of its regions of operation will boost sales in the future.B) The new loyalty program has boosted sales among its test participants.C) Sales to customers that did not opt into the loyalty program have decreased.D) None of the above

Answer 1

The correct answer is letter "B": The new loyalty program has boosted sales among its test participants.

Step-by-step explanation:

After the research, its participants increased the number of their purchases. We can conclude then that the e-mails promoted that increase since before that took place those people we just regular customers. Besides, people who did not take part in the research, continued their purchase level steady.

Answer 2

D) None of the above

Step-by-step explanation:

Other regions may not respond to the loyalty program in the same way as the test region did, and in fact management cannot even be sure that the new loyalty program has increased sales where it was implemented.

While it is true that the experiment yielded a positive result, resulting in customers in this region becoming more frequent buyers, management can not yet have a conclusive result of the experiment.

This is because the new loyalty program was successful for this region in particular, however other regions could give different results in the experiment, so management should take a larger sample in different regions to ensure or discard with more data, that the customer loyalty program would serve all of its other branches.