Price Sensitivity

Price Sensitivity refers to the degree to which overseas buyers react to changes in product prices, i.e., how price changes affect demand or purchasing decisions. In foreign trade, it is commonly used in market positioning, quotation strategies, and customer negotiations. For example, fast-moving consumer goods and low-value-added products usually have high price sensitivity, and buyers may switch to other suppliers due to a small price increase; while branded products, patented technologies, or customized equipment have lower sensitivity. Use cases include: assessing whether a target market is suitable for price increases, judging the room for customer bargaining, and designing differentiated quotations. Note: It should be judged comprehensively in combination with customer type (e.g., wholesaler vs. end retailer), product life cycle, and competitive environment, not merely based on subjective feelings. Difference from 'price elasticity': elasticity is a quantitative economic indicator, while sensitivity is more of a qualitative business description; difference from 'bargaining power': the latter emphasizes negotiation position, while sensitivity emphasizes psychological and behavioral reactions to price changes. Foreign trade practitioners should accurately assess it through historical transaction data, customer feedback, and competitor price comparisons.