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Northwest Petroleum Company

I. Problem

Northwest Petroleum Company has been concerned with the impossibility of measuring the effectiveness of its advertising campaigns. Thus, the problem is on the process of determining the effective data collection method through which the company can determine the real sales effectiveness of its advertising campaigns.

II. Time Frame

For many years, Northwest Petroleum Company, one of the large advertisers in the United States, had been concerned with the virtual impossibility of measuring the effectiveness of its advertising. The management which are the firms executive committee is having a trouble in deciding on a particular advertising campaign that they will run.

The advertising agency of Northwest Petroleum Company has the capability to present data on the ability of certain ads to catch consumer attention, the sales point remembered by consumers who read the ads and the consumer preferences among different ads. However, the executives of Northwest do not believe these data indicates the real sales effectiveness of the ads.

Because of the above mentioned factor, Northwest Petroleum Company kept a psychology professor from a nearby university to work in the marketing research department as a consultant. This research consultant then developed steps to measure the effectiveness of the advertising campaign.

III. Point of View

The group decided to take the point of view of one of the executive of the firm's executive committee.

IV. Areas of Consideration

Facts

* Northwest Petroleum was one of the large advertisers in the United States.

* The company had for many years been concerned with the virtual impossibility of measuring its advertising effectiveness.

* The advertising agency would present a proposed campaign to the firm's executive committee

* The executive committees have to give their approval or disapproval of the proposed campaign of the advertising agency.

* The advertising agency often presented research data on the ability of certain ads to catch consumer attention, the sales points remembered by consumers who read the ads, and the consumer preferences among different ads.

* The Northwest executives did not believe these indicated the real sales effectiveness of the ads.

* The company hired a psychology professor from a nearby university as a consultant which will be working in the marketing research department.

* The consultant suggested that an effort should be made to develop an instrument for measuring small changes in the attitude since one of the main objectives of advertising was to create a favorable attitude towards a product.

* The consultant developed a list of statements that might be made about a gasoline whereas some are favorable and some are unfavorable.

* The consultant obtained a list of about 150 statements about gasoline and he listed them in random order and set up an 11 point scale of favorability on which each statement was to be rated.

* For step 1, 100 adults where selected on a convenience basis by 10 interviewers in the city where Northwest home office was located.

* The statements were classified as having favorability scale values from 1 to 11, 1 indicates extremely unfavorability, 6 is neutral and 11 signify extreme favorability for each statement.

* For step 2, there are 35 statements placed in random order left to be ranked by another 100 respondents selected on a convenience basis.

* Unfavorable statements weights