The price sensitivity of consumers is the reaction when they face the different prices. Once the consumer has lower price sensitivity, it means that consumers do not real care about the increased price. Thus, it may increase the profit for the company. How to reduce consumers’ price sensitivity to maintain a competitive advantage for companies becomes one of the topics.
According to the previous studies discovered that consumers’ behaviors, products and external information cues, the level of consumer uptake of the information of products, product substitution, etc., will effect to consumer price sensitivity. But fewer scholars discuss about the relationship between consumer price sensitivity and customer empowerment, it becomes my first motivation of this study.
This study is attempted to find the moderating effect of product categories on the relationship between consumer price sensitivity and customer empowerment. We choose the hair salon and direct marketing to be the product categories in this study. It used convenient sampling to collect 500 questionnaires from the students in Chinese Culture University and National Taipei College of Business. There are 486 questionnaires were returned, the response rate is 97.2%.
The result shows that customer empowerment is significant negative related to consumer price sensitivity, and positive with the product categories moderating effect. Therefore, the result will be to explore the meaning of management and suggest directions of future.
