Price Sensitivity

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Dictionary Says

Definition of 'Price Sensitivity'

The degree to which the price of a product affects consumers purchasing behaviors. The degree of price sensitivity varies from product to product and from consumer to consumer. In economics, price sensitivity is commonly measured using the price elasticity of demand.
Investopedia Says

Investopedia explains 'Price Sensitivity'

Widely available, homogeneous goods are more likely to exhibit high price sensitivity. For example, consumers are often not willing to pay even a few extra cents per gallon for gasoline, especially if a lower-priced station is nearby. Some consumers are more price sensitive than others. Consumers who are more frugal or who are on fixed incomes are more likely to pinch pennies and shop around for lower prices. Meanwhile, some high income consumers may feel it is not always worth their time to search for better deals on many items, and thus become less price sensitive. 
Search results for

'Price Sensitivity'

  • The Forex Greeks And Strategies

    http://www.investopedia.com/articles/forex/11/forex-options-greeks.asp
    ... To Know The "Greeks.") Delta - Sensitivity to Underlying's Price Delta, the most
    popular options Greek, measures an option's price sensitivity relative to ...

  • Use Duration And Convexity To Measure Bond Risk

    http://www.investopedia.com/articles/bonds/08/duration-convexity.asp
    ... needed is a measure that could be used as a guide to the sensitivity of a bond to
    interest rate changes, since price sensitivity tends to increase with time to ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Price Value ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/price-value-basis-point.asp
    Learn how the price value of a basis point can measure the absolute price
    sensitivity of a bond. Provides sample calculations for PVBP. ...

  • 5 Reasons To Trade Bonds

    http://www.investopedia.com/articles/bonds/11/5-reasons-to-trade-bonds.asp
    ... Yield Curve Adjustments The duration of a bond portfolio is a measure of
    the bond's price sensitivity to changes in interest rates. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Duration ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/duration.asp
    Learn how duration measures the price sensitivity of a bond. Provides sample
    calculations for duration and how it relates to yield-curve risk. ...

  • Flavors & Fragrances Growing Stale

    http://stocks.investopedia.com/stock-analysis/2012/Flavors--Fragrances-Growing-Stale-IFF-PG-UL-EL0105.aspx
    ... But, the company's dreadful recent performance is reflecting a decline in volume
    sales, caused by price sensitivity to higher costs that more deeply impact ...

  • Jewelry Stocks That Could Shine In 2012

    http://stocks.investopedia.com/stock-analysis/2011/Jewelry-Stocks-That-Could-Shine-In-2012-TIF-NILE-ZLC-SIG1209.aspx
    ... 31; that was down from a $98 million loss last year. Price sensitivity during the
    holiday shopping season could dictate where jewelry stocks go in 2012. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Effective ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/effective-modified-macaulay-duration.asp
    ... and Demand; 3.3 Price Elasticity; 3.4 Elasticity of Demand; 3.5 Elasticity
    of Supply; 3.6 Marginal Benefit and Marginal Cost; 3.7 Market ...

  • Investments With Low Interest Rate Risk And High Yields

    http://stocks.investopedia.com/stock-analysis/2011/Investments-With-Low-Interest-Rate-Risk-And-High-Yields-BKLN-MBB-ALD-EMLC-VIG0421.aspx
    ... below-average durations. Duration is a way to measure debt issues' price
    sensitivity to interest-rate movements. By using the duration ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Convexity ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/convexity.asp
    Learn how convexity provides a more accurate measure of price sensitivity
    for bonds. Differentiates effective and modified convexity. ...

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