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Will lower price could increase the willingness of buying based on price elasticity?

Price elasticity of demand

Elasticity (physics)

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Lowering prices can indeed increase the willingness to purchase based on price elasticity. When the price elasticity of demand exceeds 1, firms might lower prices to boost revenue, as seen in the case of Chunghwa Telecom in Taiwan . Elastic demand, where a change in price leads to a significant change in quantity demanded, is evident in products like consumer durables, where price reductions, such as automobile rebates, have successfully increased sales . The relationship between perceived price and willingness to purchase is complex, influenced by factors like perceived brand quality, fairness, vanity, and consumer sophistication, varying across countries like the U.S. and India . Understanding these dynamics is crucial for businesses to optimize pricing strategies and drive consumer behavior effectively.

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Open access•Report•DOI A Comprehensive Understanding Toward Perceived Price and Willingness to Purchase Jungwa Son, Byoungho Jin - Show less +1 more 01 Jan 2013	Not addressed in the paper.
Open access•DOI Elasticity of demand M.C. Buer 10 Nov 2016 14 Citations	Yes, lower prices can increase buying willingness based on price elasticity. Elastic demand shows that a decrease in price leads to a significant increase in quantity demanded, as seen in consumer durables.
Book Chapter•DOI The Elasticity of Wants Alfred Marshall 01 Jan 2013 6 Citations	Yes, a lower price can increase willingness to buy if the demand is elastic, as a small price drop can lead to a significant increase in purchases due to the elasticity of wants.
Open access Do lower prices always increase willingness to purchase? A comprehensive understanding toward the role of perceived price Junghwa Son 01 Jan 2013 3 Citations	Perceived price's impact on willingness to purchase varies; lower prices don't always increase buying intent. Factors like brand quality, fairness, and consumer traits influence this relationship.
Journal Article•DOI Price-Cap Regulation, Price Elasticity of Demand, And Quality of Service 01 Aug 2022	Yes, lowering prices can increase revenue if the price elasticity of demand exceeds 1, as seen with Chunghwa Telecom in Taiwan, leading to more subscribers and improved revenues.

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