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Advertising, text and cases by Neil Hopper Borden

By Neil Hopper Borden

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1930........ 1931........ 1932........ 1933........ 4* 1934........ 1935........ 1936........ 1937........ 1938........ 9* 1939........ 1940........ 1941........ 1942........ 1943........ 9 5-1 5-9 1944........ 1945........ 1946........ 1947........ 2 • Dividend payments made from reserves accumulated in previous years, t Under $50 million. ): Government Statistics Bureau, Vol. II, No. 8 (August, 1918). S. FAMILIES AND SINGLE INDIVIDUALS BY SIZE OF INCOME FOR SELECTED YEARS o o o oa. rT 1935-36 Annual Income Less than $500...................

The Concept of Expansibility of Demand A study of demand shows that different products vary widely in the susceptibility of their primary demand to increase as a result of adver­ tising and aggressive selling. For example, the demand for oranges has increased under aggressive selling; the demand for men’s shoes has not so responded. ’*10 11 Expansibility of demand should be distinguished from elasticity of demand. 11 The concept of expansibility of 10 This term is believed to have been used first by Professor M.

A management must ask: To what extent does advertis­ ing promise to affect sales income (a) through effect on units sold; (b) through effect on price obtainable? While a management often can, through use of advertising, increase the desire of consumers for its products, and thereby may find it possible Digitized by Google Original from UNIVERSITY OF MICHIGAN 14 * ADVERTISING: TEXT AND CASES to increase the prices which it receives per unit, it also often can ma­ terially affect the quantities of its products sold, and accordingly its sales income, by the prices it sets upon its products.

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