The impact of advertising on price elasticity

The thesis research was conducted to analyse the impact of advertising on the price elasticity and how it changes the consumer price sensitivity. The aim of thesis is to prove that with an increase in price, advertising can affect the quantity demanded to increase, thus disapproving the general economic argument. The theoretical part of research includes the connection between advertising and price elasticity and how advertising affects it. Moreover, there is illustrated the variable of price elasticity and how consumer behaviour and sensitivity is affected after advertising effect. Marketing and advertising approaches are used to observe the consumer purchasing behaviour and how it changes due to quality, price and brand loyalty factors. The practical part is conducted with primary and secondary research methods wherein is conducted an online survey that gather data from respondent and generate them into numerical analysis in order to make comparisons and then, make mathematical and statistical calculations using cross-tabulation method to make finding and results clearer.