ENTREPRENEURIAL PLANNING
MARKETING PLAN DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A positive result for product’s promotional elasticity of demandSuggests that:
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the product is likely to be an ‘inferior’ one
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spending more on promoting the product will always lead toHigher profit
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the sales of the product are likely to rise at a higher rate thanPromotion spending on it
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None of the above
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Explanation:
Detailed explanation-1: -The elasticity of an advertising campaign is measured by its ability to generate new sales. Positive advertising elasticity means that an uptick in advertising leads to an increase in demand for the goods or services advertised. A good advertising campaign will lead to a positive shift in demand for a good.
Detailed explanation-2: -What is Promotional Elasticity of Demand (AED)? Promotional Elasticity of Demand (AED) measures how a change in amount spent on promotion affects quantity demanded. Simply, how much demand for a product decreases or increases following an increase or decrease in the amount of money spent on promoting that product.
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