# Question 1
1-1.
First, the category volume is affected by the volume of the rocket soup or the volume of
the competitor. As rocket soup and competitor sales increase, total category sales also increase.
Because the total category volume is the combined total sales of rocket soup and competitors. For
example, when competitors' sales were high at 13,943 in the second week, sales of the total category
were also the highest at 14,288, and when rocket soup was the highest in the 12th week, sales of
the total category were also high at 19,633. Their relationship with each other can also be confirmed
in 2,5,8,12,23,31,36,37 weeks.
Second, when the average price of soup is low, total sales rise sharply. The average price
of soup is the category price divided by category sales. Evidence of this is that the average price of
soup for 2,8,12,31,37 weeks, when total sales were the highest, was 0.68, 0.72, 0.2, 0.48, 0.66,
respectively, much lower than other weeks.
1-2.
Total category dollar spending is affected by category volume. This is because rocket soup
and category volumes affected by competitors' sales are linked to category dollars. According to
the 6-3 table, total spending was high even in the second, fifth and eighth weeks with high category
volumes. In the exceptional case, the total category volume and dollar were high, despite the very
small price of a rocket soup of $0.04 in the 12th week.
1-3.
Lower prices of rocket soup will increase consumer demand, which will increase the volume
of purchases and eventually increase the volume of rocket soup. As a result, the volume of
competitors temporarily decreased, which can lead to loss of market share. The same is true of the
opposite case. Higher rocket soup prices will reduce consumer demand and temporarily increase
rival volume. For example, in the 12 weeks when the price of rocket soup was very low at $0.04, the
share of rocket soup reached 82.1 percent, with volume also reaching 16,113. In contrast, the volume
of competitors was significantly lower at 3,520. It is similar in the fifth and 37th weeks when the
price of rocket soup was relatively low. In contrast, in the eighth week, when the price of rocket
soup was very high at 0.98, the volume of rocket soup dropped significantly to 513 and those of
competitors were very high at 11,006.
1-4.
Sales are generally very low for the week following the peak. If the peak is reached, sales
will drop next week. For example, let's look at the 6-3 table. In the second week, total sales fell to
14,288, just next week to 6,201. In the eighth week, total sales fell to 11,519, just the following week
again to 4,661. It is the same for the 12th, 31st and 37th weeks, as excessive demand in the previous
week eliminated demand for the next week. Just as total sales showed this, sales of rocket soup fell
next week when sales of rocket soup peaked, and sales also fell the week after competitors' sales
peaked.
# Question 2
2-1.
In the 12th week, Rocket Soup saw its sales jump sharply to 16,113 due to excessive
discounts on its products. Rocket soup made a drastic price cut of $0.02 by promoting features and
display, and rocket soup sales were very high.
2-2.
Rocket Soup was promoted in 13, 16 and 19 weeks, but sales increased to 1056, 1821,
1152, respectively, but did not increase much because sales were so high in the 12th week. Although
sales have not increased sharply, it is a success because sales have increased through the promotion
process anyway.
# Question 3
Economically speaking, if prices rise, sales should drop. However, the table in 6-5 shows
that there is no significant relationship between sales and prices when there is no promotion. In
some cases, sales rose even when prices rose, and in some cases, sales fell even when prices fell.
For example, sales rose from 0.24 to 0.31 despite raising prices from 0.87 to 0.98 in seven and eight
weeks. In addition, sales fell from 0.5 to 0.38 in the 12th and 13th weeks, even though the price
was lowered from 0.79 to 0.75. What this shows is that there is no relationship between price and
sales when there is no promotion.
# Question 4
There was no link between price and sales when the promotion was carried out. However,
there is a significant relationship between price and sales when the display promotion is conducted.
On Display-Only, sales declined when prices went up, and sales went up when prices went down.
For example, let's look at the table 6-5. We will compare the seventh week to the eighth week, and
as the price rose from 0.99 to 1.07 in the eighth week compared to the seventh week, the demand
for buyers decreased and sales fell from 0.36 to 0.27. In contrast, prices fell from 0.99 to 0.69 in 29
and 30 weeks, with sales also rising from 0.67 to 1.15. After all, prices and sales are correlated
during Display-only promotion.