In context of price changes, consumers tend to be:
A) relatively insensitive to any price change.
B) equally responsive to price increases and to price decreases.
C) more responsive to price decreases than to price increases.
D) only responsive to price changes when elaboration is high.
E) more responsive to price increases than to price decreases.

Question

Quizplus · Accepted Answer

Studies show that consumers tend to be more responsive to price decreases than to price increases. This is because consumers tend to see price decreases as a better deal and a signal of quality or value, while price increases may be seen as a signal of low quality or greed from the supplier.

In Context of Price Changes, Consumers Tend to Be