customers are generally most price sensitive when products are very costly or (course hero)

What makes a product more expensive than its competitors?

Sep 14, 2015 · Question 5 4 out of 4 points Customers are generally most price sensitive when products are very costly or: Answer Selected Answer: when they are bought frequently. Correct Answer: when they are bought frequently.

Is Course Hero a good company to buy from?

Dec 01, 2015 · Question 12 4 out of 4 points Customers are generally most price sensitive when products are very costly or: Answer Selected Answer: when they are bought frequently. Correct Answer: when they are bought frequently.

Why would a company choose a low price for a product?

A person who compares a product’s stated price to an internal reference price in memory ... Question 8 0 out of 4 points Customers are generally most price sensitive when products are very costly or: Answer ... Course Hero is not sponsored or …

How many major product mix pricing situations must a marketer know?

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Are customers more sensitive to price than value?

Understanding Price Sensitivity Some people may value quality over price, making them less susceptible to price sensitivity. For example, customers seeking top-quality goods are typically less price-sensitive than bargain hunters; so, they're willing to pay more for a high-quality product.

Which type of customers are price sensitive?

What is Price Sensitivity? Price sensitive customers are those who view price as a serious factor in a purchase. Some customers view extremely low prices as too good to be true and may assign a poor value to a product without having tried it.Jun 9, 2016

When consumers are very sensitive to the price?

Ease of comparison: Consumers are more price sensitive if they can easily compare the various options available in the marketplace. Perceived substitutes: If consumers obtain an equivalent substitute for a particular product or service at a lower price, they become highly price sensitive.

What products have high price sensitivity?

The more options a buyer has, the more sensitive he is to a price change in most cases. Higher-priced products, such as cars, heating and cooling systems and washers and dryers, usually lead to greater price sensitivity since they take up a large percentage of the buyer's budget.

What is price sensitive information?

[(ha) “price sensitive information” means any information which relates directly or indirectly. to a company and which if published is likely to materially affect the price of securities of company. Explanation.—The following shall be deemed to be price sensitive information :—

What is cost sensitivity?

Price sensitivity is a measure of the impact of price points on consumer purchasing behaviors. In other words, price sensitivity measures the percentage of sales you will lose or gain at any particular price point relative to another lower or higher price point.Dec 20, 2021

What is brand sensitivity?

Brand sensitivity refers to the degree of value a con- sumer grants a brand when evaluating its products. Therefore, the impact of a brand on decision making increases as a consumer becomes more sensitive to or conscious of a brand.

Why is price sensitivity important?

Low price sensitivity shows that clients are willing to pay the mentioned price and can even pay more for it. The measure helps derive the price of products and services and understand customer behavior. It empowers your company to assess how fluctuations in prices affect the demand for your products.Oct 11, 2021

What increases price sensitivity?

Buyers tend to be more price-sensitive for an offer if it is much higher, relative to its alternatives. If a buyer can directly and easily compare you with your competitor's pricing, price-sensitivity rises.

How do you approach a price-sensitive customer?

Focus on benefits, not features In dealing with price-sensitive customers, instead of cutting prices, help them understand that the money they are putting in your business is worth-investing and beneficial to them. Simply marketing the multiple cutting-edge features of your products is not enough.

What are the factors that affect industry members' ability to prosper in the marketplace?

A) are those competitive factors that most affect industry members’ abilities to prosper in the marketplace— the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.

What does "d" mean in business?

D) tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders.