Price Elasticity of Demand for Logistics and Transport

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Ningbo University Final Paper of Principles of Transportation Course Price Elasticity of Demand for Logistics and Transport College: International College Professional:Business Administration Full name: 胡 杨 Student number:096150043 宁波大学答题纸 (2010 —2011 学年第一学期) 课号:183T01A00 课程名称:运输原理 改卷老师: 学号: 096150043 姓 名: 胡杨 得 分: Price Elasticity of Demand for Logistics and Transport Abstract: This article mainly use supply and demand curve model and elastic model to analyze and interpretation the existence of off and peak seasonal phenomenon of express delivery logistics industry in China, especially discuss cause…show more content…
The logistics company 's services as invisible elastic goods, when choosing between different company in China, the lower fees, the more orders. The greater the number of substitutes, the more price-elastic will be the demand for any particular mode and thus the more sensitive shippers are to freight rate changes. Some express delivery companies through increases price, does reduce the order. But when facing long-term use Express customer who do not mind the price increase, this idea is Useless. For them, the price elasticity is relatively small. 2.For express delivery company: The transportation industry sizes itself to demand because service cannot be hoarded or stockpiled, so they don’t know when and whether the orders will change clearly. When goods are too much to influence transportation and logistics and company long-term business, by raising the price can adjust market demand in short term (provided goods are elastic), but after raised the price, I think it will not change in future, even if it will affect the sales in off-season. 3. A lot of substitutes on the market led to lower delivery costs. Observe the Supply and Demand Curve, the price closer to 0, the closer an infinite quantity. But we know that the cost of transport determine only a certain price can make a profit. Through price competition can increase order in short term, price increasing has its disadvantage, more customers both like the high efficiency and

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