Price sensitivity, also known as price elasticity of demand, can significantly affect a product's competitiveness in the market. If a product has high price sensitivity, it means that customers consider it overpriced, which can negatively impact its competitiveness. On the other hand, if a product has low price sensitivity, it means that a higher price will likely not deter customers from purchasing it, thereby enhancing its competitiveness. Understanding a product's price sensitivity can help businesses set optimal prices and influence customer behavior through specials, discounts, and other marketing techniques.
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