Market reaction function

In marketing theory, the market reaction function describes a special type of reaction function that depicts the relationship between economic or psychographic marketing goals and the intensity of use of certain sales policy instruments.

example

An example of a market reaction function is the turnover ( ) as a function of the advertising budget ( ) ${\displaystyle U}$ ${\displaystyle W}$

${\displaystyle U=f(W)}$

In this case one assumes a monotonically increasing function, i. H. an increase in the advertising budget from to leads to an increase in sales from to . ${\displaystyle W_{1}}$ ${\displaystyle W_{2}}$ ${\displaystyle U_{1}}$ ${\displaystyle U_{2}}$

features

A variety of market reaction functions are distinguished. Delimitation criteria are

Dependent sizes:

- either economically or

- psychographically

2. Independent sizes

- monocausal relationship or

- multi-causal relationship

3. Degree of aggregation

- either aggregated or

- disaggregated

4. Time aspect

- either a static function or a

- dynamic function

Individual evidence

1. ^ Willi Albers: Concise Dictionary of Economics , p. 332