There are five (5) characteristics that determine elasticity. Assume you are the

Question

There are five (5) characteristics that determine elasticity. Assume you are the marketing manager for a company that sells photo safaris to Africa; trips where people travel to Africa and tour the jungle and bush country to take photos of animals in their natural habitat. Your company puts together these trips. Using the 5 characteristics (or as many as you can) discussed in the book, explain to me whether the demand for your good will be elastic or inelastic and specifically WHY. Then, also explain how you would go about increasing your companies revenues based on how you answered the first part of the question.

Explanation / Answer

elasticity of good depends on many facors like; price of the good, competitors products price, availablity of alternatives, consumer income levels and expectations about future price changes of the good.

here about this service, the major factor is earning capacity of the consumer and the price of the service. if the consumer is earning more and more, he may be ready to spend more and more on this kind of tours and tranvels. because this is not a mandatory service for his survival, so, if he has surplus amount with him then he can plan about it.

here my target is to attract more number of customers for the tour. for that i will provide different kinds services to all. to the rich there is no problem, to the middle class and to the poor, i will frame some strategies like tie up with bankers and provide some financial assistance with some kind of surity. the surity may be like his job, salary or any kind of fixed asset.

my target is attract more and more customers and generate more revenues to the firm.

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