How can I use price sensitivity in my pricing strategy?

How can I use price sensitivity in my pricing strategy?

Price sensitivity helps you understand how changes in price affect customer demand. You can use it to set optimal prices.

What methods can I use to measure price sensitivity?

You can use surveys, historical sales data analysis, or A/B testing to measure how sensitive your customers are to price changes.

Can you give me an example of a business that successfully used price sensitivity?

Sure! Many airlines use dynamic pricing based on demand and price sensitivity, adjusting fares based on customer behavior.

How often should I reassess my pricing strategy based on price sensitivity?

It's wise to reassess your pricing strategy regularly, especially after major market changes or product launches.