Historical customer price sensitivity can be analyzed by studying past sales data and observing how changes in price have affected the quantity of goods sold. This can be done by creating a demand curve, which plots price against quantity sold. The steeper the curve, the more sensitive customers are to price changes. Additionally, factors such as customer feedback, market trends, and competitor pricing should also be considered.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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