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DedPeter [7]
3 years ago
10

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

: guppy gummies raskels, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of cannes sold increases by 5%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and raskels, and then between guppy gummies and cannies. In the second column, determine if guppy gummies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with guppy gummies. Relative to Guppy Gummies Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Guppy Gummies Raskels Cannies
Business
1 answer:
ZanzabumX [31]3 years ago
5 0

Answer:

See explanation below

Explanation:

Here, when the price of guppy gummies increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of cannes sold increases by 5%.

i.e, % change in price of guppy grummies = 5%

% change in quantity of raskels = -4%

% change in quantity of cannes = 5%

i) Find the Cross price elasticity of demand between guppy grummies and raskels. Use the expression below.

% change in quantity demanded of raskels / % change in price of guppy gummies

= -4% / 5%

= -0.8

Substitute goods have a negative cross price elasticity of demand. Since, the cross price elasticity of demamd here is negative, the goods are substitute.

It is recommended not to advertise raskels with guppy grummies

ii) Find the Cross price elasticity of demand between guppy grummies and cannes. Use the expression below.

% change in quantity demanded of cannes / % change in price of guppy gummies

= 5% / 5%

= 1

Complement goods have a positive cross price elasticity of demand. Since, the cross price elasticity of demamd here is positive, the goods complement each other.

It is recommended to advertise cannes with guppy grummies.

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Answer:

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Even give a reason why did u choose them

Maybe that would be because of their contributions or because of their sense of humor. Like that..

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2 years ago
Which of the following is NOT one of the six marketing fundamentals?
irina1246 [14]

Answer:

b. the goal of marketing is to set the price

Explanation:

6 fundamentals of marketing includes: satisfaction of customers needs or demands, continuous nature of marketing, sequential steps in marketing, key role of marketing research, interdependence of hospitality and travel organizations, organization-wide and multi department effort.

The goal of marketing has to to be the satisfaction of customers and the captured value from customers and business relationship.

Plan about price has to be set, adjusted based on the changes and requirements of customers' needs and wants.

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1) Torria wants to open a hair salon.
AnnyKZ [126]

Answer:

Case 1: Torria wants to open a hair salon

<u><em>a. 2 possible sources of revenue the business may have.</em></u>

As a hair salon, there are several sources of revenue as following:

+) First is the revenue from providing hair care services for customers. This is the main sources, generated by providing services such as cutting, dyeing, etc.

+) The second source is from training. Torria can open courses for people who want to learn about hair care skills.

<em><u>b. 5 possible expenses the business may have</u></em>

To establish and operate a business, Torria may face these expense:

+) First is the fee for place. Torria will have to pay regularly fee to borrow rooms/ house to place the salon.

+) Second is the initial investment in interior and facilities such as chair, bed,  mirror; the hair care products like shampoo, essential oils, etc.

+) Third is the salary Torria has to pay for the employees.

+) Fourth is the expense for advertising including: printing posters/ online advertisement, etc.

+) Last but not least is billing on electricity or water

Case 2: Mykeda wants to open an electronic store selling Apple products.

<em><u>a. Other source of revenue than selling electronics</u></em>

Other than selling electronic product, Mykeda can provide the services of repairing electronics to generate revenue. In this services, users can bring their broken phone to Mykeda's store to fix it and pay for that.

<em><u>b. 4 expenses </u></em>

4 expenses that Mykeda may have when opening a store are:

First, Mykeda has to pay for borrowing location on a street or in a mall to open the store.

In addition, there would be cost for the furniture of the store such as sofas, shelves, etc.

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4 0
3 years ago
Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast fo
elena55 [62]

Answer:

The answer is C: 14300

Note: The actual answer is 14296, <em>and </em>the closest to that was option C.

Explanation:

Formula to calculate forecast using Exponential smoothing:

  •    F_{t} = F_{t-1} + \alpha ( A_{t-1} - F_{t-1} )

Where,

  • F_{t} = New Forecast
  • F_{t-1} = Previous period's forecast.
  • \alpha = Smoothing Constant
  • A_{t-1} = Previous period's Actual Demand.
  1. Calculating the forecast for period 5:

Data:

  • F_{5} = ?
  • F_{t-1} = 14000
  • \alpha = 0.4
  • A_{t-1} = 14750

Putting <em>values in the formula:</em>

F_{5} = 14000 + 0.4(14750-14000)

F_{5} = 14000 + 0.4 (740)

F_{5} = 14000 + 296

F_{5} = 14296

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