Understanding price sensitivity can significantly aid in forecasting sales. It provides insight into the perceived value of a product or service by the customers, which can indicate their readiness to make a purchase. If a product has high price sensitivity, it means customers may view it as overpriced, which could negatively impact sales. Conversely, low price sensitivity indicates that a higher price will likely not deter customers from purchasing. This knowledge allows for more accurate sales volume forecasting and enables the setting of optimal prices across every category in the product line. It can also 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