Scholarly record

DUTCH TEST OF SENSITIVITY AT THE EXAMPLE OF WINE PRODUCTS

K. Sambronska, D. Matusikova

Abstract

Current customers must be able to quickly and accurately navigate through a range of products that are offered at a time of global world, highly competitive and saturated market and producers. On the other hand, enterprises must fully know the requirements, needs and purchasing power of their target customers. By knowing this, they can prepare a proper offer where the customers will be able to choose. The price is therefore one of the determining factors of a functioning market. The price of goods or services is a revenue item. Prices of each individual market depend on the interaction of costs, demand and competition. In Slovak conditions, it is still true that price is the deciding factor when choosing a product by the customers. In recent decades, the importance of other factors influencing the decision of the customers greatly increased. Price still belongs to the determining factors that decide on the share of the enterprise at the market and its profitability. Price affects the success of the product as well as its design. Initial pricing is important in the long-term pricing strategy, because given level creates hopes and expectations that are difficult to change. The study focuses on price sensitivity. The study aims to determine the price sensitivity of two specific wines. The Dutch price test of sensitivity was used as the main method. It is also called as Van Westendorp’s method. The above mentioned method assumes that respondents recognize the interconnectedness of the product price with its value and benefits.

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DOI resolver: doi.org/10.5593/sgemsocial2017/14/S04.033

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