5 Questions
Which of the following scenarios is most likely to make customers less price sensitive?
A market with few or no substitutes or competitors
What is a common reason why customers may not readily notice a higher price?
They are not paying attention to prices
Which of the following is an example of a price sensitivity factor?
The customer's willingness to change their buying habits
When customers are slow to change their buying habits, what is the likely impact on their price sensitivity?
It decreases their price sensitivity
What is a common pricing objective associated with a market with few or no substitutes or competitors?
Market skimming
Study Notes
Factors Affecting Price Sensitivity
- Companies prefer customers who are less price sensitive
- Unique or distinctive products reduce price sensitivity
Understanding Price Sensitivity
- Less price sensitivity is associated with:
- Low-cost items
- Infrequently purchased items
- Additional factors contributing to lower price sensitivity:
- Few or no substitutes or competitors
- Higher prices not readily noticed
- Slow change in buying habits
Learn about the factors that influence price sensitivity, including product uniqueness, cost, and frequency of purchase. Understand how companies use these factors to their advantage.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
