Demand elasticity is actually a quantitative measurement designed to show percentage changes in quantity demands by consumers. Elasticity is measured in terms of product prices, consumer income, prices of other goods and services, and several other variables. Elasticity, then, is a measure of the responsiveness to the changes in these variables. For the first part of this week's discussion complete the following task by Wednesday and then respond to at least one of your classmates' posting by Sunday:
- Select a product that is marketed in the U.S. that has shown significant movements in consumer demand elasticity. Identify the reasons for the movements and explain how the elasticity has affected management's ability to control pricing.
Economist and management use data from market research and consumers to analyze the economic factors that influence demand for different products. In an effort to understand consumer behavior and demand companies use one or more non-statistical methods:
- expert opinion;
- consumer surveys;
- test marketing and price experiments;
- analysis of census and historical data; and
- unconventional methods.
For the second part of this week's discussion complete the following task by Friday and then respond to at least one of your classmates' posting by Sunday:
- Select one of the five non-statistical methods, briefly define the method, explain the value in analyzing consumer behavior and demand, and then provide an actual example.