ASMP Assignment Group 07

FIRST IDENTIFY MDP , MRP Then address the following.

1. Develop a market response model for the case.

2. Develop a verbal, graphical and mathematical model.

3. Identify what are the independent variables and dependent variables and its
relationships

4. If dynamic effects exist in modeling , suggest a suitable graphical model along with
your justification.

5. What type of objective would you pursue for your market response modeling? Like
short run, long run etc

6. Identify the marketing mix interactions in your modeling.

7. Develop a market share model and its competitive effects in your market response
modeling.

8. How will you apply logistic regression in your individual customer level modeling?
Hypothetically compute by giving a score from your group members. (like in exhibit 2.7,2.8
and 2.9 for multinomial logit regression – no computation for multinomial logistic reg. just
figure alone)

9. Develop a qualitative response model for the same

Berger Breathe Easy Safe24 : Stay Safe 24 Hours

MDP: Should Berger consider product extension into new market of disinfectant sanitizer
market?

MRP: To determine Purchase intention and Product usage

 1. Market Response Model

INPUTS
Product design OUTPUTS
Selling efforts Preference level

2.
a) Verbal Model
When we put the market response model in a verbal way it can be written as:

“What impact will preference level have on sales of Berger Breath Easy Safe24?”

b) Graphical Model:

c) Mathematical Model

Y=f(xi,𝛃)
(Where i = 1 to 5)

Y =sales
x1= Advertisements
x2= effect of pandemic
x3= Germ killing features
x4= Duration of effect
x5= Credibility

The independent variables would be:

Advertisements
Effect of pandemic
Germ killing features
Duration of effect
Credibility

And the Dependent Variable would be:

Sales

4. Dynamic effect graph

5. The company would have an objective of gaining profit in the short run, as the product was
launched as a response to the corona pandemic which gave rise to a high demand in disinfectant
spray market.

Profit = (Unit price - Unit variable cost) x Sales Volume - Relevant Costs
= Unit margin x Quantity - Costs