Does Time of Day Affect Consumers’ Price Sensitivity?
(A2024-119801)

AUTHORS

Sha Zhang, University of Chinese Academy of Sciences; Xiting Wu, University of Chinese Academy of Sciences; Peiqi Jiang, University of Chinese Academy of Sciences

ABSTRACT

Amid the current economic downturn, consumers are exhibiting high price sensitivity. With mobile technology allowing businesses to connect with consumers at any time, understanding the daily fluctuations in price sensitivity becomes crucial. Previous price sensitivity research has neglected time-of-day influences; studies on time-of-day effects have not focused on price sensitivity as a key outcome. Bridging this gap, our research utilizes real-world transaction data from two distinct companies to explore this relationship. Our findings indicate that consumers are more price-sensitive in the morning than during the rest of the day. This phenomenon is explained through the lens of circadian rhythms theory. This study uncovers the latent link between time of day and price sensitivity, thereby deepening our understanding of how situational factors influence price sensitivity. These insights are invaluable for businesses in adjusting pricing and promotional strategies throughout the day.