In general,there are four combinations of advertising and price elasticities.Which of the following is NOT one of the combinations?
A) grow volume via price discounting
B) increase advertising and/or discount prices
C) maintain the status quo
D) build image via increased advertising
E) decrease prices and advertising expenses

Question

In general,there are four combinations of advertising and price elasticities.Which of the following is NOT one of the combinations? 
A) grow volume via price discounting 
B) increase advertising and/or discount prices 
C) maintain the status quo 
D) build image via increased advertising 
E) decrease prices and advertising expenses

Quizplus · Accepted Answer

The four combinations of advertising and price elasticities are typically defined as follows: 
A) using price discounts to increase sales volume, which implies high price elasticity and low advertising elasticity; 
B) increasing advertising and/or discount prices to maintain sales volume, which implies low to moderate price elasticity and moderate to high advertising elasticity; 
C) maintaining the status quo, which implies low price elasticity and low advertising elasticity; 
D) building image via increased advertising, which implies low to moderate price elasticity and high advertising elasticity. 
Therefore, the combination of decreasing prices and decreasing advertising expenses is not one of the typical combinations.

In General,there Are Four Combinations of Advertising and Price Elasticities