Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)

Use Appendix 2. Calculate:

  • promotional elasticity of demand for the DA range of walking boots if promotion spending rises from $200 000 to $300 000 [3]
  • price elasticity of demand for the DA Explorer boot if the price is cut from $200 to $180. [3]
(b)[12]

Use your results to 4(a) and any other relevant information. Discuss how important marketing planning is for the success of DA’s entry into the walking boots market.

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