The Energizer Bunny that “keeps going and going” has been a very successful ad campaign for batteries.?

Question

Explain the relationship between this slogan and the firm’s price elasticity of demand and total revenue.

Answer 1

The brand "Energizer" has become inelastic because of the name. The idea that the bunny keeps going and going has worked very well.

So, "Energizer" can charge $2 per battery and sell the same or more batteries than another brand that sells batteries for $1 each. The Energizer battery is preferred, even if the quality of the other battery is the same.

Thus, the price is less elastic with Energizer.

Answer 2

Energizer Bunny Slogan