As products become less differentiated
A) Consumers are less willing to switch in response to price changes
B) Consumers are not willing to switch in response to price changes
C) Competition becomes less intense
D) Consumers are more willing to switch in response to price changes

Question

Quizplus · Accepted Answer

When products become less differentiated, consumers may see them as interchangeable, which increases their willingness to switch brands in response to price changes. Therefore, option D is the correct answer. Option A is incorrect because consumer willingness to switch actually increases when products become less differentiated. Option B is also incorrect because consumers may still switch, even if they are not willing to. Option C is incorrect because less differentiation may lead to more intense competition, as companies seek to gain an advantage through pricing or other means.

As Products Become Less Differentiated