question 1 attached

Marketing

Market sensitivity attempts to measure and understand the responsiveness of consumers to the "4 P's, product, price, promotion and place. When analyzing market sensitivity it's imperative to understand that the importance of each of the "4 P's" will be different for diverse market segments and that market responses are also variable for each attribute. Further, the "4 P's are highly interrelated with perceived tradeoffs that vary under varying circumstances.

Sensitivity to product involves how a consumer will respond to the product's ability to fulfill a need vs. The products of competitors. So, marketers need to make sure that they have a product that meets specific customer desires and that they provide more than the competition. Place analysis is essential for understanding the customer's sensitivity to availability. Certain products and market segments require different levels of when, how and where they can obtain a product and this may vary from time to time. For example, a consumer may order online to obtain a product at a lower price, but may be perfectly willing to pay a higher price if they run out of something and need to replace it immediately. Often, customers are always willing to pay more for higher levels of service.