Macmoo Real Estate is beginning to use data-driven processes to determine the value that it gets from different marketing activities. Macmoo's website lists available properties and allows customers to request information. Macmoo tends to advertise in local newspapers and specialized real estate periodicals. The marketing director believes that Macmoo's traditional spring advertising campaign, which runs during the month of March, is an effective use of advertising resources. When pressed for evidence, the marketing director points out that revenues in March have consistently been higher than revenues in February. During 2013, Macmoo completed fewer real estate transactions than it did during any similar time period during the last five years. Still, the marketing director claims that its marketing efforts led to very positive financial results for Macmoo. Which of the following, if true, would resolve this seeming discrepancy?
A) In 2013, Macmoo spent more on advertising than it did in 2012.
B) In 2013, Macmoo diverted marketing efforts to support several corporate social responsibility initiatives.
C) Sales projections completed in 2010 predicted even lower sales volume in 2011.
D) In 2013, marketing efforts focused on sales of very expensive properties.
E) In 2013, Macmoo's principal competitors cut back on their marketing expenditures.

Question

Quizplus · Accepted Answer

The fact that Macmoo completed fewer real estate transactions in 2013 than in any similar time period during the past five years is inconsistent with the marketing director's claim that their marketing efforts led to very positive financial results. However, if the marketing efforts in 2013 focused on sales of very expensive properties, this would explain the discrepancy. Selling even a few very expensive properties could result in significant financial gains, even if overall transaction volume is lower.

Macmoo Real Estate Is Beginning to Use Data-Driven Processes to Determine