Impact on total marketing contribution


Assuming no competitive response and that the price cut resulted in a market share increase to 50%, what would the impact be on net marketing contribution as a result of this action? Show your work.

a) an increase of 12.5%

b) a decrease of 20%

c) a decrease of 17%

d) no net change in net marketing contribution

e) not enough information to determine the impact on net marketing contribution

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Business Management: Impact on total marketing contribution
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