- Availability of substitutes
When a competitve product suddenly rises in price, customers will immediately change to buying other products, so it is very ELASTIC.
- Strength of brand image
When a company has a very strong brand image, then people would be willing to buy their products even it is more expensive. Therefore, when it tends to be INELASTIC.
- Time
Customers usually have brand loyalty, but once more time passes, customers will recognise its higher price compared with its competitors, then they may abandon it and go to other competitors. So, as a price rise is implemented longer, a product's price tends to become ELASTIC.
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