Abstract:
In this paper the effects of stagflation on consumer response are determined. This study is part of a larger scaled study on modelling structural shifts in market response over time. In this paper some preliminary results together with some further ideas for research are discussed. The response of consumers is measured in two different ways. First the effects of stagflation are measured by possible changes in price, distribution and advertising elasticities. Next the effects are determined by an approach where the brands' market shares are related to the relative values of marketing instruments and the trend in consumption figures. These analyses are performed using data of 13 brands in three different markets.
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