Firm B aims to find out the optimal amount of advertising expense for the coming selling season. To analyze the impact of its own advertising expense on the sales, the manager of firm B asked the marketing research team to collect the data of its own sales and advertising expense in the past. Note that in the market there are a few competitors. The sales manager of firm B also realize s that the competitors’ advertising strategy may also h ave an effect on firm B’s sales . To find out how firm B’s sales depend on the competitors’ advertising expenses, the marketing research team collects the data of these expenses and total sales in the market in the past. Please find all data in the excel f ile.
Can you find out the impacts of both advertising expenses from firm B itself and the competitors on firm B’s performance? How will firm B and other parties decide their optimal advertising strategies?