Buyers Are Less Price Sensitive in All of the Following

question 48

Multiple Choice

Buyers are less price sensitive in all of the following situations EXCEPT ________.

• A) when the product they are buying is unique
• B) when the product they are buying is high in quality
• C) when substitute products are hard to find
• D) when the total expenditure for a product is high relative to their income
• E) when the product is exclusive

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Definitions:

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, or to improve their existing offerings.

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board that provides globally consistent financial reporting norms.

Inventory Write-Downs

An accounting process of reducing the cost of inventory that has declined in value below its original cost.

Net Profit Margin Ratio

A profitability measure that calculates the percentage of net income derived from total revenues.