Marketing_L7

What determines the price elasIcity of demand?

•  Buyers are less price sensi&ve when the product they are buying is unique or when it is high in quality, pres&ge, or exclusiveness;

•  subs&tute products are hard to find or when they cannot easily compare the quality of subs&tutes;

•  the total expenditure for a product is low rela&ve to their income or when the cost is shared by another party

The Economy

•  Boom or Recession

•  Infla&on

•  Interest rates a ect pricing decisions because they a ect consumer spending

•  Consumer Percep&ons of the product’s price and value

•  Company’s Costs of producing and selling a product.

“Value for the money”

Other External Factors

•  Resellers

•  Government

•  Social concerns

Thanks for your a@en&on!