Does time of day affect consumers' price sensitivity?

In the current economic downturn, consumers are showing increased price sensitivity. With mobile technology enabling anytime connection, understanding daily price sensitivity fluctuations is crucial. This study analyzes transaction data from two companies, covering both offline and online scenarios. Additionally, an online experiment was conducted to further reveal the causal relationship between time-of-day and consumers' price sensitivity. The studies indicate that price sensitivity is highest in the morning, decreasing by approximately 0.5% per hour. These findings are interpreted using the circadian rhythms theory. This research deepens our understanding of how price sensitivity changes over time, offering invaluable insights for businesses to tailor their pricing and promotional strategies throughout the day.