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An increase in the price of a commodity results in the decrease of the quantity demanded for the same commodity and vice versa (Keat and Young, 2009, p. 47). Therefore, if the firms reduce the prices of hearing aids, there can be increased demand for it and as a result firms can achieve higher sales and higher profits. Demand and revenue are closely related. When demand is elastic, the total revenue will be increased due to a decrease in the price of the product. When the percentage of quantity demanded is more than the changes in price, the total revenue will be increasing.
While analyzing the price factor and demand for the hearing aids, it can be understood that reducing the prices can be a reasonable measure to expand the demand and market for hearing aids. But same time, price is often regarded to be an attribute that consumers value a product and its quality. The case of hearing aid markets show that high price has become the main factor behind less demand for it and therefore firms can increase potential demand for the product if they can offer hearing aids for reduced prices.
The hearing aid companies can have pricing strategies. Companies can increase the total revenue by decreasing the prices of hearing aids if the demand is Elastic or by increasing the prices if the demand is inelastic. The hearing aids demand is inelastic because there are very few substitutes and it is considered to be an essential device for hearing for those who suffer from hearing loss (Amlani, 2007). So, the hearing aids firms can possibly increase the prices in order to increase the revenue, but it may have to reduce the prices and increase the quality of the products in order to gain a better position among the competitors especially if there is perfect competition in the market.
Based on market and situational analysis like Porter’s five force analysis, a marketing manager will be able to analyze various factors like buyer and ...Show more


Even though hearing aids don’t repair the hearing deficit, many people regard it as useful to reduce the hearing loss. So, the major…
Author : kaleighlarkin
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