pricing is one of the most complex decisions in marketing because it requires balancing multiple…

➤ Why is price elasticity important for an effective pricing strategy?
Price elasticity shows how quantity demanded responds to price changes. Knowing elasticity helps set prices that maximize revenue or volume. If demand is elastic, small price cuts can increase sales but harm margins. If demand is inelastic, higher prices boost revenue with limited volume loss. Use elasticity estimates to forecast outcomes and shape promotional tactics.