Advertising Strategy
Price sensitivity refers to the degree to which consumers alter their purchasing behavior in response to changes in the price of a product or service. Understanding price sensitivity is essential because it affects how consumers perceive value, which can be influenced by various sociological and cultural factors such as social norms, economic status, and cultural beliefs. These influences can significantly shape how individuals react to price changes, impacting their buying decisions and brand loyalty.
congrats on reading the definition of Price Sensitivity. now let's actually learn it.