- No flexibility in the price of the newspaper. In other words, the newspaper price increase does not necessarily lead to a sharp drop in circulation. However, the excess funds generated by the price process will be able Dell 312-0625 Bateria para to effectively help the newspaper investment in digital technology.
- Raise prices thwart a price war. Many industries interested in a price war, competing price. However, this approach does not always lead to an increase in sales volume, but must Dell 312-0626 Bateria para make the revenue to reduce.
Their conclusion: the paper business, not your heritage, but your bank.
For the paper sector financial position downturn publishing company, the the SKP company's perspective may be somewhat exaggerated, but still there is no lack of insight.
Let's come to talk about the issue of price elasticity. In the publishing world, this is a controversial topic. The reality is that the price elasticity does not exist here. For the U.S. market, under specific price increases revenue:
When I exchange with the author of this study Andhra music and Keller, Dell 312-0633 Bateria para they do not want to evaluate what part of the circulation decline is because of the the paper newspaper market natural atrophy, which parts from the price increase. And, they very cautious, and did not talk about the impact of falling circulation for advertising results.
However, they do not deny the amount of decline in circulation is due to a considerable part of the natural shrinking of the paper newspaperDell 312-0634 Bateria para appeared in the process of transition to the digital newspaper. If you have any questions, we might see this piece of chart compiled by the Pew Research Center (Pew Research Center)