Elasticity and Inelasticity Our society runs on the need and wants of others. Everything that is produced, sold and purchased is based on what we “the people” want. With many different occupations and styles that are expressed the need for something new or something stable, whether it is make up with over twenty different brand styles to choose from. Whether it is a vehicle that is constantly changing with the manufactures ideals in what our society wants. Every market out there is looking to be the best, produce the most, sell the most and if it doesn’t work they try to find new solutions to engage new consumers. There is also a downfall to trying to keep up with the times, When an amazing product is created and marketers try to re-invent
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Competing with Sephora is a challenge but knowing the high demand of their consumers, knowing that around fifty percent of the population wants to be perceived as “beautiful” allows both to stay afloat. This market has held its elasticity and with new consumers on a daily basis they will keep that high demand. Marketing can be a challenge where the demand for elasticity is viewed there will also be markets that are viewed as inelastic. One that comes to mind is the demand for vehicles. When most consumers purchase cars they tend to make that purchase a long term investment. Pricing them at a lower rate would possibly bring new revenue. Mostly consumers base their choice of vehicles from where they will be living at. For instance if one lives in the country side, their main interest would be to own a truck or SUV. Which would create a high demand for those types of vehicles. However if one were to live in the city they would prefer a more fuel efficient vehicle so they would be able to save money. Creating cars as a high valued item. Considering the facts they tend to balance themselves out, which creates the Inelasticity in demand. Consumers know even if the prices were to go up by one percent or down by one percent that they will be paying out the same amount in the long
Competing with Sephora is a challenge but knowing the high demand of their consumers, knowing that around fifty percent of the population wants to be perceived as “beautiful” allows both to stay afloat. This market has held its elasticity and with new consumers on a daily basis they will keep that high demand. Marketing can be a challenge where the demand for elasticity is viewed there will also be markets that are viewed as inelastic. One that comes to mind is the demand for vehicles. When most consumers purchase cars they tend to make that purchase a long term investment. Pricing them at a lower rate would possibly bring new revenue. Mostly consumers base their choice of vehicles from where they will be living at. For instance if one lives in the country side, their main interest would be to own a truck or SUV. Which would create a high demand for those types of vehicles. However if one were to live in the city they would prefer a more fuel efficient vehicle so they would be able to save money. Creating cars as a high valued item. Considering the facts they tend to balance themselves out, which creates the Inelasticity in demand. Consumers know even if the prices were to go up by one percent or down by one percent that they will be paying out the same amount in the long