There are an estimated 31 million persons in the United States who experience some form of hear loss, yet only 7.3 million opt to use listening aids (Kochkin, 2005). In 1998, Lee and Lotz analyzed the auditory modality aid industry and found several factors that contribute to poor trade penetration. First, no earreach aid smoke correct interview loss completely. Second, there is an acclimatization period for new users of hearing aids. Third, hearing aid use is often stigmatized for use with sexagenarian people, for not-so-smart people, or for people who are out-of-touch with their environments. Perceptions of stigmatism often result in a denial of hearing problems. To lessen the impact of these factors, it tycoon seem reasonable to expand the hearing aid market by simply reducing prices. Price represents one belongings that consumers evaluate when purchasing a product or service. In fact, price plays one of two roles in the purchase conclusiveness process for consumers. First, consumers might use price as a measure of product quality. That is, when quality is associated with higher(prenominal) prices, price can become an incentive to buy. Alternatively, consumers might buy more of a product at lower prices and less at higher prices, all other things being equal.
What is the demand elasticity for the hearing aid market, and will demand elasticity allow for great market penetration? The demand curve for this market is evaluate to be inelastic. Rationales for this conclusion were provided in the previous section on determinants of elasticity. Hearing aids have few substitutes, it is seen as an natural device to hear, hearing aid technology is difficult for the consumer to differentiate, and boilersuit hearing aids are a significant investiture for the patient as they are typically not paying(a) for by insurance.
Few studies have been undertaken to determine the demand use in the hearing aid industry. Using Kochkins (1992) MarkeTrak III...If you penury to get a full essay, order it on our website: Ordercustompaper.com
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