Price Sensitivity
Customers have different reservation prices they are willing to pay for your goods or services. Price increases will probably cause a decrease in sales, and price decreases will probably have the reverse effect. But how can you tell how much volume will change as a result of a price change?
The Ehrenberg-Bass Institute offers various approaches to solve this issue. If you have historical information on price changes and sales or market share, we have modelling expertise to determine the price elasticity of demand. In other cases, we can use market research surveys which use particular questions and scales to determine the likely impact of price changes.
Please email Elke.Seretis@MarketingScience.info for further information on any aspect of Price Sensitivity.