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Baldwin's Elite product Bold has an awareness of 72%. Baldwin's Bold product manager for the Elite segment is determined to have more awareness for Bold than Andrews' Elite product Abby. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Bold's existing awareness is lost every year. Assuming that Abby's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Baldwin's Elite product manager should spend in promotion to earn more awareness than Andrews' Abby product?

2M
Nothing
1M
3M

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M942560

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