Mr. Sunbucks, a marketing analyst, mistakenly put a coffee stain on the price elasticity matrix for the three orange juice brands: Tropicana, Minute Made, and Private Label (hereafter TP, MM, and PL, respectively). He is supposed to report the price elasticity matrix to his supervisor one hour later. So, he has no choice but to recalculate three price elasticities, because they are completely unreadable and he can not recall the original numbers. The price elasticity matrix is given as follows. Note that the cells in the matrix should be interpreted as the percentage change in the colum n brand's demand (or quantity sold) due to a percentage change in the row brand's price. In addition, the regression outcomes Mr. Sunbucks originally used to compute price elasticities are given as follows. Note that each row represents a separate regression model in which the variable in the second column is regressed on intercept and prices of all three brands. The estimates are given in the third sixth columns. Lastly, the average sales (in terms of units sold) and price of all three brands are given as follows. (Continued) a) Fill Blank 1, 2, and 3 using the information given in the previous page. ( b) Which brand is TP mainly competing with? Explain using cross price elasticities in the price elasticity matrix. TP's main competitor ( 1 point): (Continued) c) Compute "Clout" of MM and "Vulnerability" of PL (You don't have to show how to compute them). Clout of MM (1 point): Vulnerability of MM ( 1 point): d) Which brand has the highest brand equity/power? Answer this question using each of the following six criteria. Simply provide a name of the product in the blank below. Each blank is worth of 1 point. Mr. Sunbucks, a marketing analyst, mistakenly put a coffee stain on the price elasticity matrix for the three orange juice brands: Tropicana, Minute Made, and Private Label (hereafter TP, MM, and PL, respectively). He is supposed to report the price elasticity matrix to his supervisor one hour later. So, he has no choice but to recalculate three price elasticities, because they are completely unreadable and he can not recall the original numbers. The price elasticity matrix is given as follows. Note that the cells in the matrix should be interpreted as the percentage change in the colum n brand's demand (or quantity sold) due to a percentage change in the row brand's price. In addition, the regression outcomes Mr. Sunbucks originally used to compute price elasticities are given as follows. Note that each row represents a separate regression model in which the variable in the second column is regressed on intercept and prices of all three brands. The estimates are given in the third sixth columns. Lastly, the average sales (in terms of units sold) and price of all three brands are given as follows. (Continued) a) Fill Blank 1, 2, and 3 using the information given in the previous page. ( b) Which brand is TP mainly competing with? Explain using cross price elasticities in the price elasticity matrix. TP's main competitor ( 1 point): (Continued) c) Compute "Clout" of MM and "Vulnerability" of PL (You don't have to show how to compute them). Clout of MM (1 point): Vulnerability of MM ( 1 point): d) Which brand has the highest brand equity/power? Answer this question using each of the following six criteria. Simply provide a name of the product in the blank below. Each blank is worth of 1 point
