You are working for a start-up company and have been asked to help determine pricing and marketing strategies. You have limited information about production and sales for the past few quarters.
| Quarter | Competitor Price | Consumer Income | Company Price | Advertising | Sales-Qty |
|---|---|---|---|---|---|
| 1 | 65 | 55000 | 50 | 150000 | 125000 |
| 2 | 52 | 57000 | 52 | 160000 | 84000 |
| 3 | 53 | 59000 | 58 | 161000 | 72000 |
| 4 | 54 | 72000 | 61 | 170000 | 93000 |
| 5 | 55 | 70000 | 60 | 100000 | 80000 |
The marketing director believes that the competitor will slightly increase prices (perhaps a dollar or two). Your company can set a price, change the advertising amount, or change the advertising strategy to target a different income group. Which of these actions do you recommend and by how much? Because the data is limited, simplify your response to none, small, medium, or high.