What is price sensitivity in marketing?
Posted: Tue Jan 28, 2025 4:57 am
In marketing we know that price is one of the most important elements when a potential customer decides whether or not to buy our product. Or so it seems at first glance!
Have you ever heard the terms “price sensitivity” and “elasticity rcs data china demand” ? In this article we are going to see what they are and why it is essential to know these two concepts when defining the pricing strategy of any brand.
Knowing our target audience is vital to making better marketing decisions. For example, when deciding which attributes to communicate in advertising pieces, it is very helpful to know, in this case, how price-sensitive our target audience is.
Let's keep in mind that just as price sensitivity exists, there are many other elements that we can take into account when planning our marketing actions.
In this article we will see:
What is price sensitivity?
What is elasticity of demand?
So… why do you need to know the sensitivity of your target audience?
Practical examples of price sensitivity
1. Price-sensitive audience:
2. Public with little price sensitivity:
Price sensitivity in marketing
What is price sensitivity?
When we talk about price sensitivity, we are talking about how susceptible the consumer is to changes in the price of the product/service. By knowing our consumer, we can know how to communicate on the channels we choose with our brand.
We know that when the price of a product rises, the law of demand indicates that sales will fall, but will they fall by 10%, 20%, or 50%? The enigma to be discovered is to what extent price is a determining attribute in the purchase choice. And another point to consider is whether sales really fall when the price is raised. Is this always the case?
Have you ever heard the terms “price sensitivity” and “elasticity rcs data china demand” ? In this article we are going to see what they are and why it is essential to know these two concepts when defining the pricing strategy of any brand.
Knowing our target audience is vital to making better marketing decisions. For example, when deciding which attributes to communicate in advertising pieces, it is very helpful to know, in this case, how price-sensitive our target audience is.
Let's keep in mind that just as price sensitivity exists, there are many other elements that we can take into account when planning our marketing actions.
In this article we will see:
What is price sensitivity?
What is elasticity of demand?
So… why do you need to know the sensitivity of your target audience?
Practical examples of price sensitivity
1. Price-sensitive audience:
2. Public with little price sensitivity:
Price sensitivity in marketing
What is price sensitivity?
When we talk about price sensitivity, we are talking about how susceptible the consumer is to changes in the price of the product/service. By knowing our consumer, we can know how to communicate on the channels we choose with our brand.
We know that when the price of a product rises, the law of demand indicates that sales will fall, but will they fall by 10%, 20%, or 50%? The enigma to be discovered is to what extent price is a determining attribute in the purchase choice. And another point to consider is whether sales really fall when the price is raised. Is this always the case?