Price sensitivity, also known as price elasticity of demand, can be used to develop a pricing strategy by evaluating the product's real value and providing insight into the shoppers' readiness to purchase. High price sensitivity indicates that customers consider the product or service overpriced, while low price sensitivity suggests that a higher price will likely not deter customers from purchasing. Understanding the level of price sensitivity allows for the setting of optimal prices across every category in the product line and can influence customer behavior through specials, discounts, and other marketing techniques.
Take the most advantageous pricing approach to increase profitability of your organization. Use our...
Download template