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Security Trading offers a computer package to assist investors and has established that its premium service offering, priced at R200 000 per month, has a
Security Trading offers a computer package to assist investors and has established that its premium service offering, priced at R200 000 per month, has a price elasticity of demand of 0,5. For your calculation, use a gross margin of 50%. (a) Explain, using a detailed example and demonstrate how changes in price may affect quantity. Motivate how Security Trading can use price management of this service to increase revenue and gross profit. Comment on your calculations, relating the results to the service's brand equity and/or CVA. (10) (b) Choose five non-price factors and advise Security Trading on how they are likely to affect the price elasticity of demand of the company's services and what the company can do to exploit or mitigate these factors. Your answer is required to be comprehensive and useful for strategic decision making
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