LONDON--(BUSINESS WIRE)--Quantzig, a global analytics solutions provider, has announced the completion of their most recent whitepaper on the important factors influencing price elasticity. A small change in price does not always induce the same proportionate change in demand. Consequently, the elasticity of demand is different for different goods and services.
Price elasticity is used to find the price point of maximum profitability, which is the point where lower demand and sales neutralize increased prices and margins. The current pricing can then be compared with the ideal price point to see what products are under- or over-priced. Quantzig has listed some other significant factors that influence both the stats generated and the actual consumer behavior.
According to the price elasticity experts at Quantzig, “Not all pricing options will have the same impact. Businesses need to understand how consumers react to what exact change your brand makes for its products.”
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Important factors influencing the price elasticity:
- Consumer Segment – Consumer shopping for a particular brand or feature will be less price sensitive compared to those who are merely looking for low price products.
- Circumstances of Measurement – The setting and metrics chosen for studying and collecting data will influence your results in the end. Price elasticity measurement factor such as competitor’s actions, the state of the economy, and the brand offerings change over time and influence the buying behavior.
- Competitor’s Responses – Check what other brands are doing during your own product’s price shift. If you modify prices and your competitors don’t change anything, then the scenario can be different compared to all brands having same price shift at the same time.
- To read more, download FREE sample
Download the complete list of important factors influencing the price elasticity whitepaper here:
Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 14 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on all of Quantzig’s services and the solutions they have provided to Fortune 500 clients across all industries, please contact us.