Jul 16, 2017

What is the impact of brand loyalty on price sensitivity?

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Price Elasticity


Can we use the concept of price elasticity to identify a brand`s competitors? How would that work?
You need to distinguish between elastic (very price responsive) from inelastic (unresponsive to price changes). Economistsuse the term ceteris paribus when defining elasticity, which means holding everything else constant. How do you hold everything constant in the real world? 
What is the impact of brand loyalty on price sensitivity? 


Price Elasticity Name: University: Price Elasticity Price elasticity is the measure of degree of responsiveness of the quantity of a demanded commodity to the change of its own price. A commodity is elastic if the quantity demanded causes more than proportionate change in the price. A commodity is inelastic if the quantity demanded causes are less than proportionate price change CITATION [Ano14]Ano14. Businesses and firms seek to increase consumer satisfaction and increase revenue for the business and profits for stakeholders. Therefore, there is a nee


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