What factor can intensify customer price sensitivity according to market theories?

The visibility of price comparisons is a significant factor that can intensify customer price sensitivity. When consumers have easy access to information about competitors’ prices, they become more aware of the price range for a given product or service. This awareness can lead to increased scrutiny over pricing, as customers are likely to seek out the best deal available.

In a marketplace where prices are highly visible and easily comparable, customers tend to make purchasing decisions based more on price than on other factors such as brand loyalty or emotional attachment. This increased price sensitivity can result in greater price competition among businesses, leading them to adjust prices to attract price-conscious consumers.

The other factors influence customer behavior but do not directly amplify price sensitivity in the same way. The lack of product alternatives might make consumers less sensitive to price if they feel they have no choice; cohesive marketing strategies can create brand loyalty that mitigates price sensitivity; and emotional attachments to brands typically lead customers to prioritize brand value over price. In contrast, high visibility of prices empowers consumers to make informed comparisons, enhancing their sensitivity to price changes.