List Testing Exercise: Budget Constraint

Abstract

This exercise simulates routine list-testing decisions made by direct marketers. It presents students with 10 lists of 50,000 names each and a budget allowing them to mail to only half the available names. To discourage complicated sequential testing plans, the students are required to write out their instructions for dealing with the 500,000 names. Actual response rates for the 10 lists are available to the instructor for use in evaluating the students' plans.

Keywords: direct marketing, sampling