The consumers' price sensitivity is influenced by
A) who bears the cost.
B) what percentage of total expenditure does the product represent.
C) None of the options given are correct.
D) who bears the cost and what percentage of total expenditure does the product represent.

Question

Quizplus · Accepted Answer

Both factors - who bears the cost and what percentage of total expenditure does the product represent - have an impact on consumers' price sensitivity. If the cost is borne by the consumer, they may be more price sensitive. Similarly, if the product represents a large percentage of their total expenditure, they may be more price sensitive. Therefore, option D is the best choice. The consumers' price sensitivity is influenced by who bears the cost and what percentage of total expenditure does the product represent.

The Consumers' Price Sensitivity Is Influenced by