Point of view: Revisiting elasticity
Elasticity is the yin and yang that can unlock the potential of a brand. On the one hand, the more price inelastic your brand is, the greater the price premium you can charge. Decreasing price elasticity is one of the most fundamental objectives for marketing. As Jill Avery, a senior lecturer at Harvard Business School, states: "A marketer's goal is to move his or her products from relatively elastic to relatively inelastic by creating something that is differentiated and meaningful to customers." On the other hand, brands themselves need to become...