The Superiority of the Price Elasticity of Demand over a Set of other Factors that Affect the Palestinian Consumer’s Sensitivity: A Field Study on the Imported Electrical Devices and Machines

Abstract

This present research aimed to examine the superiority of the price

elasticity of demand over a set of other factors which affect the consumer’s

sensitivity of the Palestinian households with regard to the prices of the

imported electrical tools and machines. A sample of 424 Palestinian

households from Tulkarm city have been tested. The first main result which

has been reached is that there is a statistical relation between the factors

which determined the price elasticity of demand and the consumer’s sensitivity

towards the prices of the imported electrical tools and machines which are

caused mostly by factors such as the percentage of income spent, the durability

of goods, number of uses, availability of close substitutes in numbers and the

consumer’s sensitivity which increases as much as the consumer considers the

product as a luxury one. The second main result is that there is a statistical

relation between factors which are: value, country of origin, the expected

utility from the product and the consumer’s sensitivity. The research revealed

the superiority of the price elasticity of demand through its determinants over

the other factors concerned. Finally, it has been shown clearly that there is a

reverse relationship between the level of household’s income and the purchase

experience on one side, and the consumer’s sensitivity towards the prices of

these products on the other side. In the light of the above- mentioned results,

the researcher recommends that it is always crucial to study and evaluate the

price level of these products from the view point of all parties involved due to

its strong effect on the consumer’s sensitivity.