National survey reveals elastic price sensitivity for select equine veterinary services
Although it may seem counterintuitive for practice growth, the estimated price elasticity of demand suggests that strategic price increases could enhance profitability. While higher prices may reduce service volume, they could also lead to lower costs, potentially offsetting any revenue reduction. Moreover, the findings on elastic demand can also inform decisions regarding discounts, service bundles, and the development of tiered service offerings.
Authors
- Shuoli Zhao (ORCID: https://orcid.org/0000-0003-3110-0189)
- Emma Adam (ORCID: https://orcid.org/0000-0002-0777-0708)
- C. Jill Stowe (ORCID: https://orcid.org/0000-0003-1282-5811)
- Olivia L. Gibson
Institutions
- University of Kentucky (US)
- Agricultural & Applied Economics Association (US)
Publication Details
- Journal
- Journal of the American Veterinary Medical Association
- Published
- 2024-11-13
- DOI
- https://doi.org/10.2460/javma.24.09.0576
- Primary Topic
- Veterinary Practice and Education Studies
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- U.S. Department of Agriculture
- National Institute of Food and Agriculture