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Problem: When two sisters developed a portable cold brew coffee maker that produced less acid, they knew they had a great product. They contracted GPS Marketers to help them develop their marketing and pricing strategy, as they weren't sure what they should charge per unit. GPS sold the products in a trial run in several major cities at various stores for different prices. After the trial run ended, the data was gathered, and GPS ran a price elasticity analysis to determine what the right price and sales volume should be. Why was it important to run the analysis to figure what to charge for the coffee makers and how many to make? Providing the results of a price elasticity analysis can show stakeholders that a company is serious about planning for future expansion. Figuring out how many units to make and how much to charge allows a company to determine its marketing budget for the product. Running the analysis allows a company to know when they will need to lower the price in the future as demand lessens. Knowing the right price to charge for a product and how many of them to make helps a company maximize profit.
How do these 2 events impact on New Zealand? Are they the main importers of New Zealand's products?
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