Low price sensitivity indicates that a higher price will most likely have no negative effect on shoppers' willingness to purchase the product. This is because customers perceive the product's value to be high enough to justify the price. Therefore, they are less sensitive to price changes and are more likely to purchase the product even if the price is high.
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Price sensitivity (a.k.a. price elasticity of demand) evaluates the product's real value which, in turn, provides an insight into the shoppers' readiness to swipe their cards. Knowing the product's price sensitivity gives the power to forecast the sales volume more accurately. The high price-sensitivity signals that customers consider the product or service unreasonably overpriced. And the low price sensitivity signals that the higher price will most likely have no negative effect on shoppers' willingness to purchase the product. But most importantly, knowing the level of price sensitivity allows to set optimal prices across every category in the product line, as well as influence customer behavior through specials, discounts and other marketing techniques.