A marketer collects data from store cash registers to determine whether two products are substitutes for each other.The marketer measures the sales decline of one product after the price of the second product is reduced.Which of the following is the marketer most likely using to define the market?
A) cross-elasticity data
B) customer insight data
C) brand-switching data
D) managerial judgment data

Question

Quizplus · Accepted Answer

Cross-elasticity data measures the responsiveness of demand for one product to a change in the price of another product. By measuring the sales decline of one product after the price of a second product is reduced, the marketer is able to determine whether the two products are substitutes for each other, and therefore define the market. The other options (B, C, and D) are not directly related to measuring market substitution.

A Marketer Collects Data from Store Cash Registers to Determine