This pattern indicates that the action or state varies according to a certain factor. It's like saying 'depending on' or 'in accordance with' in English. For example, prices or decisions can change based on the situation or results. It is often used in formal or written contexts, such as business announcements or policies.

When using に応じて, the noun before it should be the basis for the change. It is not used with verbs or adjectives directly. Also, note that the phrase is often followed by a verb that shows an adjustment or response, like 変わる, 決める, 与える, 調整する.

In everyday conversation, you might hear it in fixed expressions like 状況に応じて (depending on the situation), but otherwise it can sound a bit stiff. For casual speech, you might use によって instead.