Abstract

http://ssrn.com/abstract=1732458
 
 

Footnotes (9)



 


 



Demand Expansion and Elasticity Improvement as Complementary Marketing Goals


Christine Halmenschlager


University of Paris II Pantheon-Assas - ERMES

Andrea Mantovani


University of Bologna

Michael Troege


ESCP-Europe

December 16, 2010

The Manchester School, Vol. 79, Issue 1, pp. 145-158, 2010

Abstract:     
Consider a marketing division of a monopoly that faces two marketing options: market enlargement and elasticity improvement. These options are conceived in terms of the target of the firm's advertising campaigns: potential new consumers versus existing consumers. Using a CES demand function in a simple model, we show that the two activities are complementary, so that for some cost configurations, the firm will find it profitable to jointly implement the two options together when either option alone would result in a loss. The same joint implementation conclusion also holds for consumer surplus, and hence a fortiori also under a social welfare objective.

Number of Pages in PDF File: 14

Accepted Paper Series


Date posted: December 30, 2010  

Suggested Citation

Halmenschlager, Christine and Mantovani, Andrea and Troege, Michael, Demand Expansion and Elasticity Improvement as Complementary Marketing Goals (December 16, 2010). The Manchester School, Vol. 79, Issue 1, pp. 145-158, 2010. Available at SSRN: http://ssrn.com/abstract=1732458 or http://dx.doi.org/10.1111/j.1467-9957.2010.02181.x

Contact Information

Christine Halmenschlager (Contact Author)
University of Paris II Pantheon-Assas - ERMES ( email )
12 Place du Panthéon
Paris, Cedex 5, 75005
France
Andrea Mantovani
University of Bologna ( email )
Piazza Scaravilli 2
Bologna, 40126
Italy
Michael Troege
ESCP-Europe ( email )
79, Avenue de Republique
75543 Paris, Cedex 11, 75011
France
33/149232601 (Phone)
Feedback to SSRN


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