Podcast
Questions and Answers
Which of the following scenarios is most likely to make customers less price sensitive?
Which of the following scenarios is most likely to make customers less price sensitive?
What is a common reason why customers may not readily notice a higher price?
What is a common reason why customers may not readily notice a higher price?
Which of the following is an example of a price sensitivity factor?
Which of the following is an example of a price sensitivity factor?
When customers are slow to change their buying habits, what is the likely impact on their price sensitivity?
When customers are slow to change their buying habits, what is the likely impact on their price sensitivity?
Signup and view all the answers
What is a common pricing objective associated with a market with few or no substitutes or competitors?
What is a common pricing objective associated with a market with few or no substitutes or competitors?
Signup and view all the answers
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
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
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.
