Price Sensitive

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Price Sensitive

The state in which a security's or product's price changes dramatically in the face of increased or decreased demand. Price sensitivity generally refers to securities with comparatively few shares outstanding; a large order to buy or sell is likely to affect the price more strongly than a similar order for a company with more shares outstanding. In other products, price sensitivity largely comes from whether a given product is considered a necessity or a luxury. A "luxury" product is likely to be more sensitive.
References in periodicals archive ?
The reduction in subscriber price sensitivity is due, in part, to the improving international Netflix content library, Olson tells investors in a research note partially titled "Int'l Sub Survey Shows Increased Willingness to Pay Higher Prices.
Nevertheless, these online retailers compete against each other in the common market, and consumers have different price sensitivity in different products.
American research published in the February edition of the medical journal Addiction re-evaluated 112 studies from around the world on drinks market price sensitivity.
Universal said it would "analyse such factors as consumer demand, price sensitivity and piracy in regards to the availability of open MP3s".
Some institutions are becoming quite sophisticated at using econometric analysis to understand the price sensitivity of their pool, based on historical responses to aid offers.
Of the four social dimensions of consumer participation--preparation, relationship building, information exchange, and intervention--our results indicated that the first three dimensions are negatively associated with price sensitivity but the intervention dimension is not.
It allows users to summarise key concepts such as overall satisfaction levels, service frustration, price sensitivity, switching considerations etc.
Insurance carriers need to discourage price-focused consumer behavior and begin developing deeper, service-based relationships that lessen the effects of price sensitivity over time," said Derick Sutton, vice president at Compete.
The most prevalent measure of consumer price sensitivity is the price elasticity of demand, which represents the percentage change in quantity sold for a given percentage change in price.
The FFIEC's proposed test for "high risk" appears to have been developed without sufficient consideration of the average life and price sensitivity of non-derivative pass-through securities currently treated as suitable investments for banks and thrifts.
Any institution embarking on price sensitivity analysis has to begin by ensuring integrity and completeness of admissions and financial aid records.