Case 18.4 C18-04 The academic book business is different from most other businesses because of the..

Case 18.4

C18-04 The academic book business is
different from most other businesses because of the way purchasing decisions
are made. The customer, who is usually a student studying a university or TAFE
subject, buys a specific book because the lecturer of the subject adopts
(chooses to use) that book. Sales representatives of publishers sell their
products by persuading lecturers to adopt their books. Unfortunately, judging
the quality of textbooks is not easy. To help with the decision process, sales
representatives give free examination copies to lecturers so that they can
review the
»

Case 18.4

C18-04 The academic book business is
different from most other businesses because of the way purchasing decisions
are made. The customer, who is usually a student studying a university or TAFE
subject, buys a specific book because the lecturer of the subject adopts
(chooses to use) that book. Sales representatives of publishers sell their
products by persuading lecturers to adopt their books. Unfortunately, judging
the quality of textbooks is not easy. To help with the decision process, sales
representatives give free examination copies to lecturers so that they can
review the book and decide whether or not to adopt it. In many universities,
there are several sections of the same subject, and book adoption committees
meet to make the adoption decision.

The Senior Publishing Editor, Mr Geoff
Howard, at Cengage Learning Australia was examining the latest data on the
sales of recently published textbooks. He noted that the number of examination
copies was quite large, which can be a serious problem given the high cost of
producing books. The editor wonders whether his sales representatives were
giving away too many free books, or perhaps not enough. The data contains the
gross revenues from the sales of the books, and the number of free copies for
20 books. The publishing editor would like to know if there is a direct link
between the number of free copies of a book and the gross revenue generated by
that book. Perform an analysis to provide the publisher with the information
they need.

»