fortune business insights ™: key companies covered B u s i n e s s F i n a n c e

1-Price Elasticity of demand measures the responsiveness of the quantity demanded of a particular product or service to a change in its price. Regarding total revenue, when small changes are made in price, this does not overall impact the total revenue. However, when large prices have changed, these impacts create a different outcome. Price increases will decrease the demand and, therefore, often result in total revenue loss. Therefore, we must be mindful of factors and influences of pricing strategies and demand, and how elastic and inelastic this can be.

Big companies such as Teladoc can respond to competitors in the market who are reducing prices, which will strategically lower costs and reduce the rate for a visit. For example, Teladoc offers remote on-demand medical services via phone or internet to patients all over the country and internationally. As a result, they have seen quite an increase in demand for services due to access to healthcare needs and patients’ convenience or those who do not have established primary care providers or specialty providers.

The demand rises when Teladoc contracts with insurance companies to offer 0 copays for patients. This low-cost and convenient service can often help keep patients healthier and reduce the costs incurred by our already highly costly healthcare system.

References

Scheidler, S., Edinger-Schons, L., Spanjol, J., & Wieseke, J. (2019). Scrooge Posing as Mother Teresa: How Hypocritical Social Responsibility Strategies Hurt Employees and Firms: JBE. Journal of Business Ethics, 157(2), 339-358. http://0624jbmb2.mp01.y.http.dx.doi.org.prx-keiser…

Parnell, J. A., & Lester, D. L. (2008). Competitive Strategy and the Wal-Mart Threat: Positioning for Survival and Success: Quarterly Journal. S.A.M.Advanced Management Journal, 73(2), 14-24,2.

IMF Direct: Smartphones Drive New Global Tech Cycle, but Is Demand Peaking? (2018). Newstex.

mHealth Apps Market to Gain Exponentially Exhibiting 29.1% CAGR by 2026; Increasing Demand for Smartphones to Stimulate Demand: Fortune Business Insights™: Key Companies Covered in the mHealth Apps Market Research Report are Fitbit, Inc., Apple Inc., DEXCOM, Jawbone Health Hub, Inc., Omada Health, Inc., BioTelemetry, Inc., Livongo Health, AT&T, Boston Scientific Corporation and other key market players. (2020, Jun 02). NASDAQ OMX’s News Release Distribution Channel