There are several strategies for managing high price sensitivity. One is to provide value-added services or products that justify the higher price. Another is to use pricing strategies such as discounts, sales, or loyalty programs to incentivize purchases. You can also focus on marketing efforts to highlight the quality, uniqueness, or other aspects of the product that make it worth the price. Lastly, you can consider adjusting the price to a level that customers find more reasonable.
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Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors...
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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.