Customers are likely to be more price sensitive when:
A) the total expenditure is great.
B) they have to pay the bill themselves.
C) the end benefit isn't very significant.
D) they haven't yet spent any money related to the purchase.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

All of the given options can influence the price sensitivity of customers. When the total expenditure is great, customers tend to be more mindful of the price and may actively look for better deals. When they have to pay the bill themselves, they are more likely to be price sensitive as compared to situations where the cost is borne by someone else. If the end benefit is not seen as significant, customers are more likely to prioritize price over other factors. Additionally, customers may also be more price-sensitive when they haven't spent any money related to the purchase, as there is no sunk cost to consider.

Customers Are Likely to Be More Price Sensitive When