In this case brand is inelastic availability of

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In this case brand is inelastic.
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Availability of Substitutes When there are a variety of substitutes that will do the same job, the demand becomes elastic. Example: Laundry Detergent
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Price Relative to Income If a price increases dramatically and it is beyond a customer’s budget, they are less likely to buy it. In this situation the demand will be elastic. Example: A diamond ring
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Luxury vs. Necessity When a consumer feels that a product is a necessity, the demand becomes inelastic. Example: medicine When a consumer feels that a product is a luxury, the demand becomes elastic. Example: automobile
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Urgency of Purchase If a purchase must be made immediately then the demand will be inelastic. Example: Running out of gas
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3. Consumer Perceptions Price planning involves what the consumers perceive Some consumers associate quality with price High price equals high quality High price equals status, prestige, and exclusiveness
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3. Consumer Perceptions Businesses limit a supply on the market to make the consumer think that it is worth more.
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  • Winter '17
  • arnab mishra
  • Pigeon Principal

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