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Studentka2010 [4]
3 years ago
7

Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars

typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Awe currently has an awareness level of 80% . While an important product for Andrews, Awe promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Awe loses one-third of its awareness each year, what will Awe awareness level be next year?
Business
1 answer:
Virty [35]3 years ago
7 0

Answer:

The Expected Awareness level for the next year will be 58%

Explanation:

In order to calculate the Expected Awareness level, first we have to calculate opening awareness level using the following formula:

Opening awareness level=Closing level−Decrease in awareness per year

                                          =80%−(1/3×80%)

                                          =80%−26.4%

                                          =53.6%

After having calculated the Opening awareness level we can calculate the Expected Awareness level for next year with the following formula:

Expected Awareness level=Opening awareness level+Increase in level

                                             =53.6%+5%

                                             =58%

​

​

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8 0
3 years ago
You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How m
Inessa [10]

Answer:

20%

Explanation:

if the advertising elasticity = 0.25 and you want to increase the quantity demanded by 5%, you will need to increase advertisement by = 5 / 0.25 = 20%

The advertising elasticity measures how much does a change in advertising changes the quantity demanded of a product or service.  

3 0
2 years ago
Rachel's Designs has 1,100 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
gladu [14]

Answer:

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Explanation:

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5 0
3 years ago
______ approach to capital budgeting discounts the after-tax cash flow from a project going to the equity holders of a levered f
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More about cash flow brainly.com/question/17406590

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4 0
1 year ago
A store manager for Kroger noticed that several of his regular customers have stopped coming to his store. He also noticed that
sergiy2304 [10]

Answer: True- An uncontrollable change in the marketing environment

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An uncontrollable factors basically influencing the various types of organizational factors such as performance, demographics and the technological factors.

 Therefore, The given answer is correct.

6 0
3 years ago
Read 2 more answers
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