--%>

Different types of determinants of advertisement elasticity

What are the different types of determinants of advertisement elasticity?

E

Expert

Verified

There are different determinants of advertisement elasticity are as given here:

1. Kind of commodity: elasticity will be higher for new product, luxury and growing product.

2. Market share: Well-built the market share of the firm lower will be promotional elasticity.

3. Rival’s reaction: when the rivals react to rise in firm’s advertisement by raising their own advertisement expenditure, this will decrease the advertisement elasticity of the firm.

4. State of economy: when economic conditions are good, the consumers are more probably to respond to the advertisement of the firm.

   Related Questions in Managerial Economics

  • Q : Earning difference in average wages In

    In 2007 year, relative to men along with comparable education and experience, working women earned average wages which were roughly: (w) 25%-35% of the average wages for men.. (x) 70%-80% of the average wages for men. (y) 80%-90% of the average wages

  • Q : Substitution Effect within Supply of

    When wage rates rise above $25 per hour in this figure given below, in that case the: (1) worker works more diligently to ensure that she keeps her job. (2) employer pays an excessively high efficiency wage. (3) income effect exceeds the substitution

  • Q : Total Explain the meaning of total,

    Explain the meaning of total, average, marginal and incremental revenue.

  • Q : Substituting machinery for human labor

    Substituting sophisticated machinery for human labor is termed as: (1) automation. (2) industrial sabotage. (3) kinetic engineering. (4) outsourcing. (5) robotics. Hello guys I want your advice. Please recommend some views for abov

  • Q : Illustrates the Importance of

    Illustrates the Importance of managerial economics?

  • Q : Real business practices and traditional

    Illustrates the ways in managerial economics bridges between real business practices and traditional economic theory?

  • Q : Value of the Marginal Product and

    When a firm is a price taker in the sale of its product, in that case labor’s: (w) ARP (Average Revenue Product) = MRP. (x) ARP = VMP. (y) VMP > MRP. (z) VMP = MRP. Can someone explain/help me with best so

  • Q : Illustrates the criteria for good

    Illustrates the criteria for good forecasting method?

  • Q : Problem of adverse selection Signaling

    Signaling may worsen the problem of adverse selection when: (w) potential agents do not transmit any types of signals. (x) job applicants increasingly signal with phony degrees. (y) employers discriminate on the basis of race or gender. (z) severe rec

  • Q : Market equlibrium challenges of

    challenges of Equilibrium picing in devloping countries