Lecture 5_Marketing Finance Analytics_Sales Response Model

Question 1

What is the model corresponding to constant marginal returns?

Answer 1

Linear model

Question 2

What are the models corresponding to decreasing marginal returns?

Answer 2

1) Multiplicative model
2) Semi-logarithmic model

Question 3

What is the model corresponding to saturation volume?

Answer 3

Modified exponential model

Question 4

What is the model corresponding to s-shaped?

Answer 4

1) Log-reciprocal model
2) Logistic model

Question 5

What is the model corresponding to market share?

Answer 5

1) Multiplicative interaction model
2) Multinominal logit model

Question 6

What is the formula for a linear model?

Answer 6

Q = a_0+a_1*x + u

Question 7

How do you calculate the elasticity for a linear model?

Answer 7

e = a_1*x/Q

Question 8

What is the formula for a multiplicative model?

Answer 8

Q = a_0x^a_1e^u

Question 9

How do you calculate the elasticity for a multiplicative model?

Answer 9

e = a_1

Question 10

What is the formula for a semi-logarithmic model?

Answer 10

Q = a_0 + a_1*ln(x) + u

Question 11

How do you calculate the elasticity for a semi-logarithmic model?

Answer 11

e = a_1/Q

Question 12

What is the difference between “Delayed response model” and “Hysteresis effect”?

Answer 12

With the delayed response model the sales go back to their original state, and with hysteresis they stay above the original state