Mm

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Price Sensitivity

Transcript of Mm

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Price Sensitivity

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What Does Price Sensitivity

Mean?

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Price Sensitivity is the awareness of the consumer to what they perceive to be the window of cost within which they will buy a particular product or service.

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Key Point’s: Each customer will have a certain price acceptability window and different customers have different limits in their perceptions of what price is within their range.

The degree to which the price of a product affects consumers purchasing behaviours.

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The degree of price sensitivity varies from product to product and from consumer to consumer.

In economics, price sensitivity is commonly measured using “Price Elasticity of Demand” A market professional must know a range of price sensitivities and the demand curve will reveal the most likely quantities, a marketer can move at alternative prices.

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Question on Purchasing???????

First ask, "What would you expect the price to be for this product or service?"

Second ask, "what would you expect to be a "good buy" price?“


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