Price sensitivity is a good starting point for further analysis.
There are many factors that can affect demand and prices.
Demand moves in response to a variety of factors, some of which are directly related to your marketing policies . Knowing the elements that affect the price sensitivity of your products is very important in order to make the right adjustments.
The theoretical basis is found in the demand function. This is nothing more than a way of describing how demand varies based on a series of variables. One cambodia email list of them is precisely the price of the product .
The most common is to find an inverse relationship in which the higher the price, the lower the demand . Based on this concept, it is necessary to understand that price sensitivity also depends on other factors.
When we talk about price sensitivity , we are really talking about the ability of an element to affect the price through changes in demand . Therefore, price is not the end to be studied, but the result of a market situation to which you have to adapt in order to remain competitive .
The elements that affect demand are rarely under your control, but you have to take them into account or you will find out when the sales figures speak for themselves. You have to control demand and react with strategies that keep your sales figures appropriate to your structure.
However, changing the price is not always the best solution. You can, for example, target new market segments or change your positioning, among other things. In any case, you have to make decisions .
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Price sensitivity and price sensitivity
Demand can be sensitive to many factors, including the price of the product and others such as income or the prices of other products. In general terms, two concepts can be distinguished .
