In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A) "The different brands are almost identical. I always buy the cheapest."
B) "I use so little of that product that when I do buy it, I don't pay much attention to the price."
C) "The brand I buy is so superior to other available brands that I hardly consider the others."
D) "I pinch pennies in buying other products, but like most people, I feel I owe it to myself to get the best brand of this product."

Question

Quizplus · Accepted Answer

When consumers consider different brands to be almost identical, they are likely to be highly price-sensitive and price is likely to be the key factor in their purchasing decision. Therefore, demand for a particular brand in such a market would be very elastic.

In Some Markets Consumers May Buy Many Different Brands of a Product