Exploit Digital Opportunities

Hermann Simon and Adam Echter
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Hermann Simon: Simon-Kucher & Partners
Adam Echter: Simon-Kucher & Partners

Chapter 9 in Beating Inflation, 2023, pp 71-80 from Springer

Abstract: Abstract Digitalization has brought about a radical increase in transparency; the rapid transformation of price transparency has massive commercial impacts across all businesses. Transparency increases price elasticity making the task of combating inflation more difficult. Thankfully, digitalization also ushers in a new era of value transparency that helps combat inflation. Positive value-to-customer ratings lead to reduced price elasticity. The opposite is true for negative ratings. Digital-native businesses and those with near-zero marginal costs are not immune to inflation. While the price of a free good is not impacted by variable inflation rates, higher inflation will introduce growth pressures as the break-even point of revenue producing products increase.

Date: 2023
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DOI: 10.1007/978-3-031-20093-9_9

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