Two companies namely TEHsantai and ChillTEA are the only two trending bubble tea joints competing for the local market share. In planning a marketing strategy for the coming year, each company is considering four strategies designed to take market share from the other company. Each worked with an advertising agency in order to develop alternative advertising strategies for the coming year. A variety of internet advertisements, product promotions, in-store displays, and appointing celebrity ambassador provides four different strategies for each company. The following Table 1 summarizes the projected change in market share for TEHsantai once the two companies select their advertising strategy for the coming year.

Two companies namely TEHsantai and ChillTEA are the only two trending bubble tea joints competing for the local market share. In planning a marketing strategy for the coming year, each company is considering four strategies designed to take market share from the other company. Each worked with an advertising agency in order to develop alternative advertising strategies for the coming year. A variety of internet advertisements, product promotions, in-store displays, and appointing celebrity ambassador provides four different strategies for each company. The following Table 1 summarizes the projected change in market share for TEHsantai once the two companies select their advertising strategy for the coming year.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5PA

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