Ron and Ed will discuss ten factors of price sensitivity that all pricers should consider before establishing a price. Price sensitivity is far more predictive than demand elasticity studies, which simply show changes in overall revenue in response to various price changes. Price sensitivity is far more granular, allowing pricers to analyze the particular drivers of value at the customer level. Analyzing price sensitivity is an important exercise for any business that wants to capture more of the value it creates from its offering.
The Soul of Enterprise: Business in the Transformation Economy by THRESHOLD