Paper 2 · November 2013 · Marketing and the Marketing Mix
How is promotional elasticity of demand best defined?
AResponsiveness of demand to a change in promotional spending
BResponsiveness of demand to a change in the price of a rival
CResponsiveness of supply to a change in promotional spending
DResponsiveness of demand to a change in the consumer's income
Explanation
Promotional elasticity measures how far quantity demanded moves when spending on promotion moves. It is the percentage change in quantity demanded divided by the percentage change in promotional spending.
Derived from ZIMSEC Business Studies Paper 2, November 2013, Q1