Purchasing or procurement activities are a part of our daily lives and are often not given much thought by individual buyers. However, in an organisational setting, it can cause a massive change within the revenues and achievements of the Corporate Social Responsibility and value creation goals that a company sets for itself.
Mass consumption products have an inelastic demand which means that the demand is unaffected by the change in price. This implies that the customers will keep buying the products even though the price is high.
On the other hand, keeping the price of these products low is in the best interest of the companies selling them because it could give them a great competitive advantage and make the operations sustainable in the long run (Etzel, Walker & Stanton, 1997).