When customers can easily compare prices, what effect does this have on their price sensitivity?

When customers have the ability to easily compare prices, it significantly enhances their price sensitivity. This means that they become more aware of price differences between competing products or services. With abundant information at their fingertips, customers are more likely to notice when prices vary substantially for similar offerings. This heightened alertness often leads them to favor the option that provides the best value for their money, driving home the importance of competitive pricing for businesses.

Additionally, price-sensitive customers are more inclined to switch brands or products based solely on price differences. They may also engage more in searching for promotions, discounts, or better deals, reinforcing the notion that price plays a crucial role in their purchasing decisions. Therefore, when price comparison becomes easy, the overall sensitivity to price tends to increase among consumers, making them more responsive to pricing strategies employed by businesses.