Pricing sensitivity: Nagle has identified nine factors that contribute to price sensitivity and has also presented various methods or techniques to measure it. The factors that contribute to price sensitivity are:
1. Unique value effect: the more unique the product, the lower is its price sensitivity.
2. Substitute awareness effect: if the buyers are aware of substitute and these perform the same function, then the buyer's price sensitivity will be high.
3. Difficult comparison effect: price sensitivity will be low if the buyer has difficulty in comparing two alternatives.
4. Total expenditure effect: if the expenditure on the product represents a low proportion of the consumer income, then the price sensitivity will be less visible for such a product.
5. End benefit effect: buyers are less price sensitive where the expenditure on the product is low compared to the total cost of the end product.
6. Shared cost effect: if the cost of the product is shared by another party, which are along with assets previously prone to the price sensitivity.
7. Sunken investment effect: price sensitivity is low in products, which are used along with assets previously bought.
8. Price quality effect: the higher the perceived quality of the product, the lower the price sensitivity.
9. Inventory effect: if the product cannot be stored, the buyer will be fewer prices sensitive.