Week 9 Discussion 2
AND RESPOND TO THIST POST:
Miller
RE: Week 9 Discussion 2
In retail, price sensitivity is always changing. Common health and beauty products, like soap, toothpaste and deodorant, move the fastest. In this case, consumers are relatively less sensitive to price variations. Price sensitivity of a product refers to the level of importance buyers place on price relative to other purchasing criteria. Customers looking for top quality health and beauty products are less price sensitive than consumers who are in search of a bargain.
For example, consumers who look for bargains will compare prices and chose the lowest. Crest or Colgate is in my bathroom depending on which one is on sale!
Price estimate sensitivity could benefit the effectiveness of a pricing strategy when buyers are less price sensitive. The more they value the unique quality of a product, the more they will buy it, no matter the price. A consumer may only choose Crest toothpaste because of the BLUE brightening strips that are in the paste. Marketing plays a major role when differentiating products from the competition.
Price sensitivity can cause harm when there is difficulty with comparing alternative. Let’s take the same example with Crest. What is Colgate didn’t have a toothpaste that offered GREEN brightening strips?