Market-Based Management 6th Edition by Roger Best

Exercise 17

The three interactive marketing performance tools and the application exercises outlined here will add to your understanding of customer response to marketing communications, advertising elasticity, and the advertising carryover effect. To access the tools, go to www.MBM-BEST.com. For the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you may save your work. The figure numbers in parentheses are related examples in Chapter 10, but the lettered instructions pertain to the online exercises.
Estimating Advertising Elasticity
A. Using the data provided, how does the advertising elasticity change when the increase in sales after advertising is 10 percent instead of 4 percent?
B. What level of sales is needed to produce an advertising elasticity of.30, given the same increase in the advertising budget as in question A?