Quote:
Originally Posted by DaddyHalbucks
Sometimes a higher price sells better than a lower price.
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It really isn't as simple as that.
In another thread today I mentioned how odd it was to come to the US and see regular grocery brands (in the UK and Europe) pitched and priced as premium brands here. But it isn't solely that they have a higher price:
all the marketing associated with them combines to create the impression that the higher price is justified.
Googling "consumer price sensitivity" produces over 6 million results. To get an idea how complex a topic it is, just scan through some of the articles on the first page. The first thing which becomes clear is that price sensitivity varies according to the type of product or service concerned. Secondly, price sensitivity is frequently made greater (or dampened down) by other factors associated with the particular market.
In short if you grab one message relating to this field and apply it out of context, you are likely to come badly unstuck.