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Important price sensitivity issues

How do I have to price my products? Take advantage of the following important price sensitivity issues which I think are important to take into consideration.

Price sensitivity deals with the consumer’s sensitivity to price changes and is important for strategic decisions. Price has a significant influence on the behavior of consumers and consequently on firm revenues and profits. In general, price sensitivity is analyzed by the slope of the demand curve or by the price elasticity of demand (Kaul & Wittink, 1995, p. 151). In my article we will use price elasticity, since it is not sensitive to the units of measurement and is often used in the field of microeconomics, and we will focus on describing the factors which influence price elasticity.

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