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What is price sensitivity?

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Jeanine Prather
small business consultant, Prather Associates
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Price sensitivity refers to the threshold that buyers of products and services experience when they decide whether or not to purchase. Some consumer markets have higher levels of price sensitivity, especially for discretionary purchases.

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Matthew Balfour
Managing Director, Pricing Software News
Posted on Jan. 15, 2012
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Perceived value is the underlying factor in price sensitivity, effectively communicating value can redefine said price sensitivity.

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