all customers. We know that loyal customers are of three types—hard-core loyal, split loyal,
and shift loyal—and the remaining customers are switchers. If an organization has a good
number of loyal customers, it can enjoy greater leverage to its pricing policy. Third , price
sensitivity differs from customer to customer. Marketers should know which of their custom-
ers are more sensitive to price change and at what level of price customers become price
sensitive.
•Rivalry: It is imperative that the pricing policy of a company is highly infl uenced by the price
charged by its competitors. When the rivalry of fi rms operating within the same industry is
low, the degree of competition becomes imperfect, which encourages a fi rm to ...
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