Price Sensitivity Matrix

It is a framework that aids in determining and categorizing buyers based on their emphasis on differentiation value and price sensitivity. Depending on the level of these variables, consumers can fall into the following categories:

1. Price shoppers: These customers prioritize low prices over perceived value, even if certain products offer significant value. They seek the cheapest option regardless of quality.
2. Value buyers: They are price-sensitive but also prioritize quality. They strive to find the best combination of quality and price.
3. Convenience shoppers: These customers are less sensitive to price and prioritize convenience and availability. They tend to choose options that offer the greatest convenience without actively seeking differentiation.
4. Relationship buyers: They place a high value on satisfaction and personal preference, often disregarding price considerations. They are loyal customers who appreciate valuable aspects such as product quality, exceptional service, or overall company attention.