Can a product’s price elasticity change between elastic and inelastic❓
Check the poll results below and find the answer!👍💡⬇️
The key findings are:
➡️Most people acknowledge that price elasticity can change dramatically with price and many other factors
➡️There is some deviation for non-pricing people, but still most agree
➡️Respondents identified multiple factors that affect price elasticity apart from price, such as random demand spikes, new competitive products, competition prices, market & macro conditions, and even the weather, depending on the product.
We asked ChatGPT to contribute😉💡👍, and gave us some interesting insights:
Price elasticity depends on many factors, both external and internal, for the company. Almost everyone agrees on that, including ChatGPT😉.
Under certain conditions, price elasticity may remain relatively constant, for instance, for small price changes and stable markets. That was the case a few years ago when we experienced continuous and healthy growth. Inflation was low and markets were more stable. But it's not like this anymore. Growth and inflation fluctuate, supply chains are disrupted by global conflict, and new technologies like AI disrupt all industries and economies.
We no longer have the luxury of assuming that price sensitivity & elasticity will remain the same, so we need more sophisticated approaches and software tools to support us💪🚀.
You can learn more about the dynamics of price elasticity and why it is essential to use Predictive AI to boost sales and profits, in our previous post.
Interested in learning more about AI-Powered Price Optimization and Strategic Forecasting?
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