Abstract: The price sensitivity of consumers in the sinking market is an important basis for enterprises to make marketing strategies for them. This paper analyzes the effect of consumers' cognitive miserliness on price sensitivity and the mediating effect of perceived value, as well as the moderating effect of group norm on perceived value. The results show that cognitive miserliness negatively affects price sensitivity, and negatively affects price sensitivity through the mediation of functional value and social value. Reference group norms moderated the mediating effect of social value on cognitive miserliness and price sensitivity, but did not moderate the mediating effect of functional value. Based on this, enterprises deeply engaged in the sinking market should re-examine the sinking market, change the stereotype of high price sensitivity to the sinking market, improve the quality of their own products, use existing social channels to change the perceived value of consumers, and maintain the retention and re-purchase of consumers.

Key words: sinking market, cognitive miserliness, price sensitivity, reference norm