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Based on the price elasticity matrix given below:
aqufresh colgate crest mentadent
quafresh. black 1 blank 2 0.8 2 .0
colgate 1.2 -3.5 1.5 1.5
crest 1.0 2.5 -3.2 1.8
mentadent 1.8 1.2 1.3 4.0
1. Assume that Aquafresh own price elasticity is -1.5 and that the Colgate cross price elasticity of demand with respect to Aquafresh price change is 1. How do you interpret the own and cross price elasticities?2. Which brand is Aquafresh mainly competing with? Explain using cross price elasticities in the price elasticity matrix.
3. Aquafresh main competitor: Explain :
4. Which brand has the highest brand equity/power? Explain using Clouts and Vulnerabilities of the four toothpaste brands.
5. Brand with the highest equity/power
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Overheard at water cooler: My regression model of demand is better than one that the consultant prepared for us because it has a higher R2.
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