Healthie is a health drink company that is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotically flavored drinks. It also charges higher than the other health drink companies. Another company offers the same drinks a lower price. Customers who were once loyal to Healthie immediately switch over to the new company which is charging a lower price for the same drinks. This is an example of _____.
A) price sensitivity
B) affective conflict
C) party selling
D) palming off
E) all-you-can-afford budgeting

Question

Quizplus · Accepted Answer

Price sensitivity refers to the degree to which the price of a product affects consumers' purchasing behaviors. In this scenario, customers switched to a competitor offering the same product at a lower price, indicating high price sensitivity.

Healthie Is a Health Drink Company That Is Known for Launching