Price Elasticity: Women's Apparel and Children's Toys Analytical Essay by Nicky

This paper presents an analysis of price elasticity.
# 145834 | 991 words | 9 sources | APA | 2010 | US
Published on Nov 29, 2010 in Business (Administration) , Business (Management) , Business (Marketing) , Economics (General)


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Description:

In this article, the writer compares the price elasticities of two products, the first having price elastic demand, and the second having price-inelastic demand. The writer then presents an assessment of their respective implications for total revenue. For purposes of this analysis, the price-elastic products are high-end cotton women's apparel which has shown to consistently have a high degree of price elasticity from previous studies. The inelastic product included in this analysis is children's toys. The writer concludes that accurate demand curve analysis is crucial in both cases to maximize the level of profits by product.

Outline:
Introduction
Price Elasticity of Children's Toys
Price Elasticity of High-End Women's Cotton Apparel
Total Revenue Implications

From the Paper:

"By definition price elasticity is defined by the sensitivity of product demanded based on a percentage change of its price (Sahay, 2007, 53). When a product's price change leads to an equal to a larger percentage change in demand, a product is considered to be elastic. In industries that have become more inelastic over time there is a continuing effort to define dynamic pricing models that seek to optimize price given demand for a specific product at a specific point in time (McAfee, Vera te Velde. 2008, 432 - 448). This price optimization approach to strategically attempting to create a demand curve (Docters, Durman, Korman, Schefers, 2008, 22 - 25) has been successful in services industries trending towards inelasticity yet have been marginally successful in toy manufacturing and distribution. The inelasticity of the toy industry is also specifically created in part by the very rapid product lifecycles and use of severe price discounting at the end of every toy season to quickly reduce inventories through distributors and retailers."

Sample of Sources Used:

  • Rob Docters, Christine Durman, Tracy Korman, Bert Schefers. 2008. The neglected demand curve: how to build one and how to benefit. The Journal of Business Strategy 29, no. 5 (September 1): 19-25. http://www.proquest.com (accessed December 21, 2008).
  • Fadiga, Mohamadou Lamine "United States consumer demand for cotton apparel: Implications for the apparel industry". Ph.D. diss., Texas Tech University (2003). In ABI/INFORM Global [database on-line]; available from http://www.proquest.com (publication number AAT 3096012; accessed December 21, 2008).
  • Lisa Farrell, Michael A Shields. 2007. Children as consumers: investigating child diary expenditure data. The Canadian Journal of Economics 40, no. 2 (May 1): 445. http://www.proquest.com (accessed December 20, 2008).
  • R Preston McAfee, Vera te Velde. 2008. Dynamic Pricing with Constant Demand Elasticity. Production and Operations Management 17, no. 4 (July 1): 432-438. http://www.proquest.com (accessed December 18, 2008).
  • Jorge M Oliveira-Castro, Gordon R Foxall, Teresa C Schrezenmaier. 2005. Patterns of consumer response to retail price differentials. The Service Industries Journal 25, no. 3 (April 1): 309-335. http://www.proquest.com (accessed December 21, 2008)

Cite this Analytical Essay:

APA Format

Price Elasticity: Women's Apparel and Children's Toys (2010, November 29) Retrieved October 19, 2021, from https://www.academon.com/analytical-essay/price-elasticity-women-apparel-and-children-toys-145834/

MLA Format

"Price Elasticity: Women's Apparel and Children's Toys" 29 November 2010. Web. 19 October. 2021. <https://www.academon.com/analytical-essay/price-elasticity-women-apparel-and-children-toys-145834/>

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