Procter & Gamble is the manufacturer of Pampers diapers. At one time, the price of a typical package of diapers was relatively high (i.e., more than $12 a package) . Due to the threat of store brands stealing market share because of their lower price, P&G decided to lower the price for Pampers. While most consumers noticed the price reduction because P&G promoted that fact, what most of them did not notice was that the number of diapers per package also decreased. However, the reduction was only one or two diapers per package. Which of the following best explains why consumers did not notice the reduction in the quantity?
A) Number of diapers per package was not important to consumers.
B) The reduction in the quantity did not reach the level of a just noticeable difference.
C) Price is more important than quantity to consumers.
D) Consumers are price conscious for this product category.
E) Consumers are brand loyal.
Correct Answer:
Verified
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