Abstract:

Setting the optimal price is the aim of every company. In setting the price, however, companies can not only consider what price is best for the company as such but must also take into account the perception and behavior of consumers. Also, companies must not forget that once they set the price of the products, it does not mean that the price must remain the same throughout the product life cycle. On the contrary, in line with the changing needs of consumers over time, their sensitivity to change in price and willingness to spend their money will also change. Consumers' needs change due to factors such as age, changing lifestyles, and so on. The aim of the paper was to explain the essence, advantages and disadvantages of the Dutch price sensitivity method and to find out whether age and gender affect the consumer's perception of price as a product quality indicator. Our paper is focused on the issue of price and price setting in the introduction. In the next part, we are focusing on the application of the Dutch price sensitivity method to a specific product to assess its advantages and disadvantages, and in the light of the changing needs of consumers, we also wanted to see whether age and gender have an impact on whether consumers perceive the price as a key indicator of product quality. In order to achieve the aim of the paper, we conducted a survey focusing on four questions of the Dutch price sensitivity method and also the consumer's view of whether price is an indicator of product quality.