The theory of price must be determined
Discussion post response
The managed care organization (MCO) in this discussion is about the marketing manager that reduce the MCO” premium by 10 percent and saw 20 percent increase in the number of subscribers. With this, the manager then thought that by reducing the premium by 29 percent it would be an additional 40 percent increase. In addition, before expanding on the discussion of elastic demand, the theory of price must be determined. Furthermore, rate is the level of economic reimbursement a company needs for its true services (Berkowitz, 2017, p.342). In addition, when business enterprise establishes a charge it is corresponding to the stage of fee that the client perceives in the carrier being provided (Berkowitz, 2017, 342). With this illustration it shows how a change in the value of the product can modify how the customer perceives the service or services that are being offered (Berkowitz, 2017). The pricing decision is a major aspect of marketing strategy (Berkowitz, 2017, p.342). Also, it is critical for the rate to affect customer demand as well as aggressive dynamics of the marketplace (Berkowitz, 2017, p. 342).
Price Elastic Demand
The method of price elasticity of customer demand as the month-to-month top rate for a silver health care plan provided on a nation presented on a health state exchange (Berkowitz, 2017, p.352). With this elastic demand decrease by the same or greater percentage as the price percentage may increase. In addition, price elasticities of demand for specific health care offerings using an instrumental variable strategy, in which character monthly fee shares are instrumented by way of employer-year-plan-month common fee shares (Ellis, Martinsa, & Zhub, 2017, p.232). Also, interest rate and price rises, so does elasticity. When a demand percentage do not exceed that percentage change in price, this is elastic. In contrast, the time a percentage change in demand exceeds the percentage change in price which is elastic. Furthermore, the relationship between the MCO’S number of subscribers to change within the premium cost of demand would be elastic. The analytical framework to higher reflect variant in service-level fee sharing paid via consumers, and top-class markups that end result in nonzero profits, which can have an impact on design profits and decision (Ellis, Martinsa, & Zhub, 2017, p.352). In addition, the marketing manager is assessing the degree of price elasticity. Organizations usually try to reduce the price associated with service and product. Also, there is an inverse relation that is connected between the price and demand of the product. With change in price also changes demand. Furthermore, elastic demand is critical strategy to recognize because the health care business is shifting from repayment surroundings into retail economy the place products and services are offered to consumers, the pricing concerns common to normal businesses (Berkowitz, 2017, p.369). Manage care in the health care setting is critical it allows strategies to help lower costs. Also, pricing is vital it allows financial resources to deliver in health care benefits. With this marketing strategy pricing is a key in branding, profitability, and volumes in health care. Also, in health care there are changes constantly with reimbursement, but one must adjust to the health care industry evolving often. The bible declares in Hebrews 13:8 (NIV), “Jesus Christ is the same yesterday and today and forever.” Regardless of all the changes in our society one must know the Lord is the same all the time.
Reference
Berkowitz, E. N. (2017). Essentials of health care marketing. Burlington, Ma: Jones & Bartlett learning.
Ellis, R.P., Martinsa, B & Zhub, W. (2017). Health care demand elasticities by type of service. Journal of Health Economics. (55). 232-243. https://doi.org/10.
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