Price sensitivity
Price sensitivity measures how much the demand for a product changes in response to a change in its price.
Price sensitivity (also called price elasticity) describes how strongly customer buying behavior reacts to price changes. High price sensitivity means a small price increase leads to a significant drop in demand.
Example: A SaaS tool raises its monthly price from $49 to $59. If churn increases sharply as a result, the product has high price sensitivity. If churn stays flat, demand is inelastic.
