--%>
Assignment Help - homework help

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 : Area of decision making in Managerial /

    Illustrates the area of decision making in Managerial / Business Economics?

    		•
  • Q : Explain about econometric models

    Explain about econometric models.

    		•
  • Q : Lower Wages in Wage Differentials

    Compared to men along with similar amounts of education or experience, women onto average earn: (1) higher wages. (2) similar wages. (3) lower wages. (4) There is no general pattern. Can someone explain/help me with best solution a

    		•
  • Q : Problem regarding the Economic Capital

    Economic capital doesn’t comprise a new: (i) luxury apartment building. (ii) bulldozer. (iii) bond issued by the U.S. Department of the Treasury. (iv) multi-tasking cell phone. (v) paper clip. I need a good a

    		•
  • Q : Estimate d 8. The Real Kool Toys

    8. The Real Kool Toys Company manufactures and sells educational toys. An empirical demand function for one of the firm's products has been estimated over the last 21 quarters using regression analysis. The estimated demand function is: QY = -8,000 - 5,000PY + 192A + 120I + 2,000PX (6,000) (1,00

    		•
  • Q : Explain marginal I/O relationship in

    Explain the marginal input-output relationship in short run and long run.

    		•
  • Q : Total Labor Income by Elasticity of

    When the demand for labor is wage elastic, raises in wage rates cause total labor income to: (w) increase. (x) decrease. (y) remain the same. (z) fluctuate erratically. I need a go

    		•
  • Q : Definition of Managerial economics

    Describes the definition of Managerial economics according to Douglas?

    		•
  • Q : Increment in demand raises the

    An increase within the demand for Swiss cheese will absolutely raise the equilibrium as:  (w) price when the supply of Swiss cheese shrinks over the same period. (x) quantity when the supply of cheese shrinks during the same peri

    		•
  • Q : Define the term unitary elastic Define

    Define the term unitary elastic.

    		•