| John Spacey, January 10, 2016 updated on January 13, 2023
Price sensitivity is the degree to which demand drops as you increase the price of a product or service. At the individual customer level, this can be viewed as a drop in conversion rate as you increase the price. Price sensitivity varies greatly from one customer to the next. For example, in many cases businesses and governments are willing to pay far more than individuals. It is common for pricing strategies to charge different prices based on a variety of factors designed to separate customers based on price sensitivity. For example, airlines may charge a lower price for tickets that involve a Saturday night stay. This is designed to identify business travelers who are typically less price sensitive.
This is the complete list of articles we have written about pricing.
If you enjoyed this page, please consider bookmarking Simplicable.
An overview of common pricing strategies.
A list of price discrimination strategies.
An overview of price wars.
A list of price economics principles and theories.
A definition of premium pricing with examples.
A definition of penetration pricing with examples.
The definition of variable pricing with examples.
A definition of channel pricing with examples.
An overview of supply and demand with examples.
The definition of value pricing with examples.
Simplicable is a modern encyclopedia that has been updated daily since 2010.
A list of interesting business theories.
A definition of knowledge work with examples.
A list of social processes, absurdities and strategies related to office politics.
A guide to product development.
The differences between types of knowledge.
An overview of the trough of sorrow.
A list of common business models.
A list of things that marketers do.
A list of common competitive advantages.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.