Strategy for Industry

STRATEGIC INTELLIGENCE

ER05

Demand Stickiness & Price Insensitivity

Structural assessment of demand resilience. Defines the 'Consumption Floor' and the degree to which demand remains stable regardless of price shocks or economic contraction.

Functional & Economic Role Score HS / ISIC Confirmed

0

Existential / Captive

Demand is decoupled from price; consumption is required for survival or the prevention of system collapse (e.g., insulin, cooling water for reactors, basic caloric staples).

Advertising Gambling and betting activities
1

Critical Utility

High insensitivity; price increases are absorbed with minimal volume loss due to extreme switching costs or lack of substitutes (e.g., specialized lubricants, foundational SaaS).

Mixed farming Silviculture and other forestry activities Mining of iron ores
2

Budget-Insensitive

Low-cost item that is a tiny fraction of the total end-product cost; price doubling has negligible impact on the buyer's P&L (e.g., screws in a car, spices in a meal).

Growing of cereals (except rice), leguminous crops and oil seeds Marine fishing Mining of hard coal
3

Mature / Habitual

Stable demand with moderate sensitivity; consumers may grumble but rarely switch unless price increases are sustained and extreme.

Support activities for petroleum and natural gas extraction Manufacture of dairy products Manufacture of wearing apparel, except fur apparel
4

Market-Sensitive / Elastic

Significant volume drop-off if price rises; highly competitive with many 'good enough' alternatives.

Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations Manufacture of consumer electronics Manufacture of batteries and accumulators
5

Discretionary / Hyper-Elastic

Demand is purely opportunistic; consumption can be deferred indefinitely or substituted instantly with zero friction (e.g., luxury travel, decorative accessories).

Manufacture of pharmaceuticals, medicinal chemical and botanical products Water collection, treatment and supply Data processing, hosting and related activities

Score Distribution

How 129 industries score on this attribute

0 1 2 3 4 5

2

17

47

26

33

4

2.6

Scoring Notes

Prioritizes 'Necessity' and 'Budget Share' over trailing mathematical coefficients.

Real industries from our analysis demonstrating each score level for Demand Stickiness & Price Insensitivity.

5 Very High / Critical

Manufacture of pharmaceuticals, medicinal chemical and botanical products

Water collection, treatment and supply

Data processing, hosting and related activities

1 more industries

Other activities auxiliary to financial service activities ISIC 6619

4 High

Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations

Manufacture of consumer electronics

Manufacture of batteries and accumulators

30 more industries

Building of ships and floating structures ISIC 3011 Manufacture of furniture ISIC 3100 Manufacture of jewellery and related articles ISIC 3211 Construction of buildings ISIC 4100 Plumbing, heat and air-conditioning installation ISIC 4322 Other specialized construction activities ISIC 4390 Retail sale in non-specialized stores with food, beverages or tobacco predominating ISIC 4711 Retail sale of clothing, footwear and leather articles in specialized stores ISIC 4771 Freight transport by road ISIC 4923 Courier activities ISIC 5320 Short term accommodation activities ISIC 5510 Restaurants and mobile food service activities ISIC 5610 Event catering ISIC 5621 Software publishing ISIC 5820 Other credit granting ISIC 6492 Life insurance ISIC 6511 Real estate activities with own or leased property ISIC 6810 Real estate activities on a fee or contract basis ISIC 6820 Accounting, bookkeeping and auditing activities; tax consultancy ISIC 6920 Market research and public opinion polling ISIC 7320 Specialized design activities ISIC 7410 Renting of video tapes and disks ISIC 7722 Activities of employment placement agencies ISIC 7810 Travel agency activities ISIC 7911 Combined facilities support activities ISIC 8110 Activities of collection agencies and credit bureaus ISIC 8291 Defence activities ISIC 8422 Other education n.e.c. ISIC 8549 Creative, arts and entertainment activities ISIC 9000 Operation of sports facilities ISIC 9311

3 Moderate

Support activities for petroleum and natural gas extraction

Manufacture of dairy products

Manufacture of wearing apparel, except fur apparel

23 more industries

Manufacture of glass and glass products ISIC 2310 Manufacture of lifting and handling equipment ISIC 2816 Manufacture of motor vehicles ISIC 2910 Manufacture of railway locomotives and rolling stock ISIC 3020 Manufacture of air and spacecraft and related machinery ISIC 3030 Manufacture of medical and dental instruments and supplies ISIC 3250 Construction of roads and railways ISIC 4210 Electrical installation ISIC 4321 Building completion and finishing ISIC 4330 Maintenance and repair of motor vehicles ISIC 4520 Sale of motor vehicle parts and accessories ISIC 4530 Wholesale trade, except of motor vehicles and motorcycles ISIC 46 Retail sale via mail order houses or via Internet ISIC 4791 Passenger air transport ISIC 5110 Accommodation ISIC 55 Motion picture, video and television programme production activities ISIC 5911 Other information technology and computer service activities ISIC 6209 Web portals ISIC 6312 Activities of insurance agents and brokers ISIC 6622 Legal activities ISIC 6910 Management consultancy activities ISIC 7020 Technical testing and analysis ISIC 7120 Organization of conventions and trade shows ISIC 8230

2 Low

Growing of cereals (except rice), leguminous crops and oil seeds

Marine fishing

Mining of hard coal

44 more industries

Extraction of crude petroleum ISIC 610 Processing and preserving of meat ISIC 1010 Processing and preserving of fish, crustaceans and molluscs ISIC 1020 Manufacture of vegetable and animal oils and fats ISIC 1040 Distilling, rectifying and blending of spirits ISIC 1101 Printing ISIC 1811 Manufacture of refined petroleum products ISIC 1920 Manufacture of plastics products ISIC 2220 Manufacture of basic iron and steel ISIC 2410 Manufacture of structural metal products ISIC 2511 Manufacture of computers and peripheral equipment ISIC 2620 Manufacture of measuring, testing, navigating and control equipment ISIC 2651 Manufacture of irradiation, electromedical and electrotherapeutic equipment ISIC 2660 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus ISIC 2710 Manufacture of domestic appliances ISIC 2750 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines ISIC 2811 Manufacture of agricultural and forestry machinery ISIC 2821 Manufacture of bicycles and invalid carriages ISIC 3092 Repair of fabricated metal products ISIC 3311 Construction of utility projects ISIC 4220 Wholesale of computers, computer peripheral equipment and software ISIC 4651 Sea and coastal freight water transport ISIC 5012 Warehousing and support activities for transportation ISIC 52 Sound recording and music publishing activities ISIC 5920 Wired telecommunications activities ISIC 6110 Wireless telecommunications activities ISIC 6120 Computer programming activities ISIC 6201 Computer consultancy and computer facilities management activities ISIC 6202 Other monetary intermediation ISIC 6419 Non-life insurance ISIC 6512 Research and experimental development on natural sciences and engineering ISIC 7210 Veterinary activities ISIC 7500 Private security activities ISIC 8010 General cleaning of buildings ISIC 8121 Landscape care and maintenance service activities ISIC 8130 Activities of call centres ISIC 8220 Higher education ISIC 8530 Hospital activities ISIC 8610 Medical and dental practice activities ISIC 8620 Residential nursing care facilities ISIC 8710 Social work activities without accommodation for the elderly and disabled ISIC 8810 Library and archives activities ISIC 9101 Activities of professional membership organizations ISIC 9412 Hairdressing and other beauty treatment ISIC 9602

1 Minimal

Mixed farming

Silviculture and other forestry activities

Mining of iron ores

14 more industries

Preparation and spinning of textile fibres ISIC 1311 Manufacture of communication equipment ISIC 2630 Manufacture of parts and accessories for motor vehicles ISIC 2930 Electric power generation, transmission and distribution ISIC 3510 Materials recovery ISIC 3830 Sale of motor vehicles ISIC 4510 Warehousing and storage ISIC 5210 Beverage serving activities ISIC 5630 Television programming and broadcasting activities ISIC 6020 Architectural and engineering activities and related technical consultancy ISIC 7110 Combined office administrative service activities ISIC 8211 Packaging activities ISIC 8292 Other human health activities ISIC 8690 Repair of computers and peripheral equipment ISIC 9511

0 Not Applicable / None

Advertising

Gambling and betting activities

Archetype-Specific Considerations

This attribute has special risk drivers when applied to certain industry archetypes:

Driven by liquidity, risk pricing, and balance sheets.

Risk Driver: Margin Compression vs. Volume Loss

Driven by biology, nature, and decay. Time is the enemy.

Risk Driver: Caloric/Nutritional Floor

Related Strategies

Strategies that incorporate Functional & Economic Role pillar analysis (17 strategies):

SWOT Analysis Porter's Five Forces PESTEL Analysis VRIO Framework 7-S Framework Industry Cost Curve Structure-Conduct-Performance (SCP) Cost Leadership +9 more

Playbooks Using This Attribute

1 playbook use ER05 in their feasibility checks:

Rules Using This Attribute

6 risk rules use ER05 in their trigger conditions: