SURPRISING PRICE SENSITIVITY

Price Sensitivity:

It is defined as the price consciousness a customer have within them while making any kind of dealings. Every customer has some level of price sensitivity and they tend to expert comparison shoppers

Price sensitive customers try to research five to six different areas, factors, features and look for the lowest possible price before making a decision while purchasing the product they are interested in. The price plays an important role in this as it affects the sales of the product or service.

Price sensitivity is high on commodities like bread, water,salt etc;low on products where quality is important and almost null on luxurious product. It is related to price elasticity

For example:
*Big bazaars provides discount offer on the product, thus customers provide signals that they are price sensitive by buying more products which are offered in discounts.

*Ola and Uber rides are also good example for price sensitivity because it defines some customers who go for share cab and other opt for single cab.

*In many Multiplexes, Cineplex people opt for Gold, Platinum or Silver by doing this customer show their price sensitivity as different customer have different price sensitivity and they make decision depending on this.