In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. Here are the top six reasons why customer satisfaction is so important:
1 When the price elasticity of demand for a good is unit (or unitary) elastic (E d = 1), the percentage change in quantity is equal to that in price, so a change in price will not affect total revenue.2  When the price elasticity of demand for a good is relatively elastic d. When the price elasticity of demand for a good is relatively elastic d. 2  When the price elasticity of demand for a good is perfectly elastic (E d is â â), any increase in the price, no matter how small, will cause demand for the good to drop to zero. 3  Hence, when the price is raised, the total revenue falls to zero.
Elasticity of demand is consumers' responsiveness or sensitivity to changes in price. Elastic demand is when consumers buy significantly more or less of a product when its price changes. Inelastic demand means that an increase or decrease in price will not significantly affect demand for the product. The boot camp is providing some examples of the types of elasticity. One of the toy company's products is a baby item that simulates a car driving.