Which of the following IS NOT a situation that can cause customers to be less sensitive to price increases?
A) When customers have few product choices.
B) When products are highly differentiated.
C) When the product is a real or a perceived necessity.
D) When the total expenditure is high.
E) When the product is considered to be "worth it".

Question

Quizplus · Accepted Answer

Customers are more likely to be sensitive to price increases when the total expenditure on a product is high, as it represents a larger portion of their budget. The other options (A, B, C, E) describe situations where customers might be less sensitive to price changes due to lack of alternatives, product uniqueness, necessity, or perceived value.

Which of the Following IS NOT a Situation That Can