Executives can evaluate customer price sensitivity through various methods. They can conduct market research to understand what price range customers are willing to pay for a product or service. This can be done through surveys, focus groups, or analyzing sales data. They can also use price sensitivity meters, which are tools that help determine how sensitive customers are to price changes. Additionally, they can analyze competitor pricing and customer reactions to those prices. Lastly, they can use price elasticity of demand, which measures how demand for a product changes when its price changes.
Need to improve your product pricing to maximize your profit margin? This Pricing Strategies Toolbox...
Download template