Buyers are highly price sensitive when
A) their purchase represents a small fraction of their procurement budget.
B) they earn low profits or are strapped for cash.
C) the quality of their products and services are highly affected by the quality of the inputs.
D) the industry's products are highly characterized with non-price competition.

Question

Quizplus · Accepted Answer

Companies need to be aware of situations when buyers are especially price sensitive. This is the case when buyers earn low profits or are strapped for cash.

Buyers Are Highly Price Sensitive When