advertising elasticity

advertising elasticity definition - business

advertising elasticity

The responsiveness of quantity demanded in relation to a change in funds spent on advertising. Advertising elasticity is a measure of the effectiveness of advertising expenditures and should be an important consideration in the allocation of an advertising budget among various products.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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