Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

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This phenomenon is known as "pricing power asymmetry" and has been extensively studied in consumer behavior research. Consumers typically have a stronger negative reaction to price increases, even if the increase is small, than they do to price decreases. This means that businesses need to carefully consider the potential impact on customer loyalty when deciding whether to raise prices.

Because Consumers Are Generally More Sensitive to Price Increases Than