An Empirical Study of Price Sensitivity Among Consumers in Tier-II Cities of India

This study aims to examine the level of price sensitivity among consumers in Tier-II cities of India, with specific reference to Coimbatore, Tamil Nadu. The research adopts an empirical approach based on primary data collected through a structured questionnaire administered to consumers visiting shopping malls in Coimbatore. A total of 50 valid responses were obtained using convenience sampling. The study analyzes how demographic factors such as age, gender, occupation, and monthly income influence consumer price sensitivity, along with behavioral aspects including online price comparison, reliance on online reviews, and brand loyalty.

Descriptive statistics, correlation analysis, chi-square tests, analysis of variance (ANOVA), and multiple regression analysis were employed to test the proposed hypotheses. The findings reveal that consumers in Tier-II cities exhibit moderate to high price sensitivity, particularly among lower- and middle-income groups. Online price comparison behavior is found to be positively associated with price sensitivity, while brand loyalty shows a negative relationship. Income level significantly influences price sensitivity, indicating that higher-income consumers are comparatively less price-conscious.

The study provides valuable insights into the evolving consumer behavior in Tier-II Indian cities, highlighting the growing importance of digital information sources in purchase decision-making. The findings offer practical implications for marketers and retailers in designing pricing strategies, promotional campaigns, and brand positioning tailored to price-sensitive consumers in emerging urban markets.