Price-dependent

Price-dependent describes a situation, product, or service whose value, sales, or demand is significantly influenced by its price. This dependence can manifest in various ways, including affordability considerations, where lower prices often lead to increased demand, and perceived value, where higher prices can sometimes signal higher quality or exclusivity. Consumer behavior, market competition, and production costs all contribute to how price fluctuations impact the subject at hand. The term emphasizes the pivotal role of price in determining success or viability.

Price-dependent meaning with examples

• The success of the new e-reader is highly price-dependent. A slight price increase, even of $10, could substantially diminish sales as budget-conscious consumers have many alternative devices. Its market share is intimately tied to its ability to remain competitively priced within its category.
• Luxury goods, like designer handbags, are sometimes price-dependent in a different way. Higher prices can enhance their perceived prestige, attracting a specific clientele. Reducing the price too drastically could undermine their image and actually decrease demand by making them seem less exclusive.
• Subscription services are often price-dependent. A small monthly fee might be seen as an affordable indulgence, attracting a wide base. Conversely, a steep price could deter potential subscribers and limit overall profitability, making it critical to find the right balance.
• The pharmaceutical industry is notoriously price-dependent, with factors like insurance coverage, government regulations, and the availability of generic alternatives all greatly impacting sales. Price negotiations are a standard part of this highly regulated, market-based industry.