Factors That Impact on Consumers Price Sensitivity Essay

Factors That Impact on Consumers Price Sensitivity - Essay Example This paper illustrates that in marketing, it is imperative to understand price sensitivity. This is because it has a significant impact on how the product competes with the others in the market. It is crucial because it determines the success of the product. There are factors that impact on the consumer’s price sensitivity; one of them is the unique value effect. The uniqueness of a product will help it succeed. Consumers will not be very price sensitive if the product is outstanding from the rest. But if the product is similar to many others in the market, the consumers will have to make a choice; they will have to compare the products, and will most likely go for the one that has a lower price. This means that a marketer should know the qualities that would set the product apart. Perceived substitute effect is a very common factor that affects the consumer’s price sensitivity. If there are no substitutes, consumers will be less sensitive to prices. Technological advan cement has made it simple for consumers to know if there are substitutes. The media has been a big influence on the consumers. It is of great significance for a marketer to be aware of this to set the right strategies, especially when it comes to pricing. It is also vital to know how the competitors are pricing their products. Sometimes it is very hard for consumers to compare products. It, therefore, makes them less price sensitive if they have a difficulty in comparing products. Although the media has made it easier for the consumers to be able to quickly differentiate products, a marketer should be prepared to meet such challenges. Whenever there are different products to choose from, a consumer will always go for the most reputable one. A product that is well known will always have an upper hand. For example, in the market, there are very many different kinds of handsets, but the one that is well known always wins the competition, even if all the features are the same.