Price Sensitivity and Its Impact on Brand Switching Behavior

Abstract

This study investigates the impact of price sensitivity on brand switching behavior by employing a mixed-methods experimental design that integrates quantitative surveys and qualitative interviews. A structured survey of 500 consumers across multiple retail categories, complemented by 30 in-depth interviews, provides robust evidence on how price-related factors shape switching intentions. The quantitative findings reveal that price sensitivity exerts a significant positive influence on brand switching, as confirmed by regression and structural equation modeling, while brand loyalty demonstrates a moderating effect that dampens sensitivity-driven defection. Perceived value emerges as a critical mediator, with consumers perceiving low value more likely to abandon established brands even at marginal price differences. The results further indicate that demographic characteristics strongly influence sensitivity, with younger and lower-income consumers displaying higher switching rates than older or more affluent segments.Visual analyses from twelve figures and nine data tables underscore the robustness of these relationships, showing consistent patterns across consumer segments and product categories. Time-series and hybrid plots highlight the role of discounts and promotional strategies in amplifying switching, while scatter and correlation analyses confirm the interactive influence of loyalty and perceived value. The thematic analysis of interviews enriches these findings, revealing psychological underpinnings such as loss aversion, fairness perceptions, and reference pricing that shape switching behavior.Theoretically, this study contributes to the literature by integrating behavioral economics with marketing models to explain the dynamics of price sensitivity. Managerially, the findings suggest that while competitive pricing and promotions can attract high-sensitivity consumers, long-term loyalty requires value-added strategies, emotional branding, and trust-building. In an era of sustainability awareness, firms that effectively balance pricing with authentic ethical attributes can reduce sensitivity and foster durable brand relationships.