The simplest way to think about price elasticity is the change in demand for a product given a change in price.
Rigorous calculation of elasticity at an individual customer level or segment level creates the ability to adjust prices across different segments to allow for significant increases in profit with no loss in volume.
Even in industries which have no ability to charge different segments different prices, Quantium has found that there has been a great uncertainty of the price elasticity of the market, and a change in pricing can lead to vastly different results than initially expected.
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