Price sensitivity, also known as price elasticity of demand, can be used to evaluate the real value of a product by providing insight into customers' readiness to purchase. If a product has high price sensitivity, it means customers consider it overpriced. Conversely, low price sensitivity indicates that a higher price will likely not deter customers from purchasing. Understanding a product's price sensitivity allows for more accurate sales forecasting, optimal pricing across product categories, and the ability to 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