Which of the following best describes the sunk-investment effect on price sensitivity?
A) Customers are less price-sensitive when there are no acceptable substitutes for a product.
B) Customers are less price-sensitive when the purchase is necessary to gain full benefit from assets previously bought.
C) Customers are less price-sensitive when their expenditure for the product or service is a relatively low proportion of their total income.
D) Customers are less price-sensitive in the short run when they cannot store large quantities of the product as a hedge against future price increases.
Correct Answer:
Verified
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