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

Question

Quizplus · Accepted Answer

When products become less differentiated, consumers are more likely to view them as interchangeable, and therefore more willing to switch brands if there is a perceived benefit, such as a lower price. This increases price sensitivity and makes consumers more responsive to price changes.

As Products Become Less Differentiated