What pricing flexibility refers to in marketing?

Pricing flexibility in marketing refers to the ability to change prices for different markets. This concept is crucial because it allows businesses to adapt their pricing strategies based on various factors such as market demand, competition, and customer segments. By adjusting prices, companies can better respond to the unique characteristics of different markets, maximizing revenue potential and maintaining competitiveness.

For example, a company might set lower prices in a price-sensitive market to attract more customers while keeping higher prices in a premium market where customers are willing to pay more for perceived value. This ability to tailor pricing across different markets enhances overall market strategy and optimizes profit margins.