Price sensitivity, also known as price elasticity of demand, can be used to optimize a product line in several ways. First, it provides insight into the product's real value and the customers' willingness to purchase it. High price sensitivity indicates that customers consider the product overpriced, while low price sensitivity suggests that a higher price will not negatively affect their willingness to buy. This information can be used to set optimal prices across the product line. Additionally, understanding price sensitivity can help influence customer behavior through specials, discounts, and other marketing techniques.
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