Question

Sly Bailey, the Trinity Mirror Chief Executive, sought to boost revenues of the Daily Mirror in 2004 by increasing the price of the tabloid newspaper by 3p, from 32p to 35p. The move is a sharp U-turn of the policy of Philip Graf, her predecessor, who tried to boost Daily Mirror circulation by cutting the cover price, triggering a price war with its rivals The Sun and the Daily Star. Ms. Bailey ended the price war as soon as she took over at Trinity Mirror in 2003. The Daily Mirror will now cost 5p more than the The Sun, which is owned by News International, parent company of the Times. It appears that The Sun has no immediate plans to increase its price. The Daily Mirrorlast increases its price in September 1999 but the tabloid newspaper market in the UK is fiercely competitive and it’s not clear what the effect on its circulation will be.

Question:

1.   What price elasticity of demand issues are raised in this case study?

Answer 1

Price elasticity of demand issues like changes in prices shall have what magnitude of impact on consumption is not established as innovation and customer preferences are ever changing. Issues like designing right pricing strategy and marketing mix and and at same time,

Rise in prices was backend by rise in education facilities as assumption.