The degree to which the price of a product affects consumers' purchasing behavior is referred to as
A)price sensitivity.
B)price elasticity.
C)marginal pricing.
D)dynamic pricing.
E)price relevancE.

Question

Quizplus · Accepted Answer

Price sensitivity refers to how much consumers are affected by changes in the price of a product. This can be measured by how much demand changes when the price changes. If a small change in price leads to a large change in demand, then consumers are price sensitive. This information is important for marketers when setting prices and making pricing decisions. Therefore, option A is the best choice.

The Degree to Which the Price of a Product Affects