Definition: The relationship between a change in advertising budget and the resulting change in product sales.
Elasticity measures how increasing or decreasing the price affects demand for a product. Elasticity is used by both marketing companies and economists.
Elasticity: The unit or dollar sales shift in response to a change in price or other variables.
Electroencephalogram (EEG): A device that measures the fluctuations and patterns in electrical processes within the brain.
Price Elasticity of Demand Relates to the sensitivity of customers to price changes in terms of the quantities they will buy.
Cross Elasticity of Demand - a measure of the affect a change in the price of one product will have on the demand for a substitute or complementary product.
Cultural Diversity - the range of different value systems existing in a multicultural society.
Price elasticity of demand: the responsiveness of demand to changes in prices. Elastic products are very responsive, so that a price increase leads to a fall in demand, while inelastic products are very unresponsive and thus a rise in price leads to little or no change in demand.
Price elasticity of demand
Price elasticity of demand measures the responsiveness of a change in demand for a product following a change in its own price
Price sensitivity ...
Profit Elasticity A measure of the profit potential of different economic conditions based on adjusting price, supply, or other variables to create a different profit potential where the supply and demand curves cross. Proximity A measure of how close words are to one another.
Elasticity of Demand
a measure of the degree to which any change in the price of a product will affect the demand for it.
~ The degree that an economic variable changes in response to a change in another economic variable. For example how much library use changes according to how far an individual must travel for library services.
Downside Elasticity - a term used in reference to the sensitivity of consumers to a decrease in the price of a particular product; downside elasticity means that the demand for the product increases significantly as the price falls.
Cross-price elasticity of demand measures the responsiveness of the demand for a particular good to changes in the price of another good. Marketing professionals use cross-price elasticity of demand to… Read More ...
Cross-price elasticity of demand. The percentage of change in demand for one product divided by the percentage change in price of the second product, assuming that all other factors affecting demand are constant.
Advertising elasticity The relationship between a change in advertising budget and the resulting change in product sales. Advertising page exposure A measure of the opportunity for readers to see a particular print advertisement, whether or not that actually look at the ad.
Consider, for example, what we can do when there is a large degree of price elasticity-i.e., when some consumers are willing to pay more than others.
What is Price?
Price vs. Value
Importance of Price
Factors Affecting Pricing Decision
Internal: Marketing Objectives
Internal: Marketing Strategy
External: Elasticity of Demand
External: Customer Expectations
External: Competitive and Other Products
External: Government Regulation ...
While ROI is a somewhat sophisticated measurement, some search marketers prefer to account for their marketing using more sophisticate profit elasticity calculations.
Organic SEO ...
The process of estimating demand therefore leads to
i. Estimating Price sensitivity of market
ii. Estimating and analyzing demand curve
iii. Determining price elasticity of demand.
Some search engines and third party software developers have created software which makes it easier to control your ad spend. Some of the more advanced tools can integrate with your analytics program and help you focus on conversion, ROI, and earnings elasticity instead of just looking at cost per ...
See also: What is the meaning of Marketing, Product, Market, Brand, Customer?