Pricing sensitivity, Marketing Management

Assignment Help:

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.


Related Discussions:- Pricing sensitivity

Astronomy: star mapping, Two nights ago, an astronomer took a picture of a ...

Two nights ago, an astronomer took a picture of a small portion of the sky containing 10,000 stars. Last night, the astronomer took a picture of the same portion of sky (containi

Discuss about the term http, Discuss about the term http. Http: ...

Discuss about the term http. Http: Http is stands for Hyper Text Transfer Protocol, The WWW protocol which performs the request and retrieves functions of a server. Gene

What target market options recommend to all golf, All Golf was the first re...

All Golf was the first retail store devoted exclusively to selling Golf equipment and clothing in a medium-sized northern city. Sales were low for the first year, and then the stor

Inerfa ce, What are sabmiller interfaces with loqgistics, marketing, distri...

What are sabmiller interfaces with loqgistics, marketing, distribution

What is marketing transaction, What is marketing transaction? A marketi...

What is marketing transaction? A marketing transaction is one in that the buyer and the seller, not individual of the nature of the product, skill mutual satisfaction the selle

Define the strategies for product positioning, Define the Strategies for Pr...

Define the Strategies for Product Positioning. Product positioning is attained through a variety of marketing strategies and programs within product design, distribution and pr

Support media used in advertisement, Q. Support Media used in advertisement...

Q. Support Media used in advertisement? Support Media: - Message is legible, brief written in bold letters attractive, eye-catching and it must depict the brand name. It has

How to select a media for advertisement, Q. How to select a Media for adver...

Q. How to select a Media for advertisement? Media Reach and Coverage: Such media must be selected which has wide reach and can cover our target customers. If the advertiser h

What are processes for selecting target markets, What are processes for sel...

What are processes for selecting target Markets? Market Targeting: Once the form has known its market segment opportunities, this has to evaluate different segments and a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd