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Q. In a statement to Gillette's shareholders, Chairman also CEO James Kilts indicated, ‘Despite numerous latest products launches, Gillette's advertising-to-sales declined dramatically... to 6.5 percent (%) last year. Gillette's advertising spending, in fact, is one of the lowest in our peer group of consumer product companies. ‘If the elasticity of Demand for Gillette's consumer products is similar to other firms in its peer group (that averages -4.5) Illustrate what is Gillette's advertising elasticity? Is Gillette's Demand more or less responsive to advertising than other firms in its peer group? Elucidate also Elucidate how all calculations
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