price sensitivity

Budget-driven buying behavior

Price sensitivity is how much a change in price affects consumers' willingness to buy something.

High price sensitivity means small price increases drive customers away; low price sensitivity means buyers will pay more without much resistance.

Luxury goods typically show low price sensitivity, while commodities show high: Budget airlines compete on price sensitivity.

Opposites

purchase decision drivers

price sensitivitybrand loyalty

Habitual preference for one company

price responsiveness

price sensitivityinelastic demand

Purchasing unaffected by price changes

consumer psychology toward spending

price sensitivityextravagance

Excessive, wasteful spending

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