A consumer's price sensitivity will decrease as:
A)the perceived number of substitutes increase.
B)switching costs increase.
C)the shared costs for the expenditure decreases.
D)the perceived unique value of the service decreases.
E)the customer's ability to build an inventory increases.

Question

Quizplus · Accepted Answer

As switching costs increase, consumers become less price sensitive because the effort, time, and/or money involved in switching to a different product or service outweigh the potential cost savings. Therefore, they are less likely to switch even if the price increases.

A Consumer's Price Sensitivity Will Decrease As