The Observation That Consumers Are Generally More Sensitive to Price

question 112

Multiple Choice

The observation that consumers are generally more sensitive to price increases than to price decreases suggests that

• A) most consumers cannot remember what price they paid the last time they bought a particular product.
• B) it is easier to lose customers with a price increase than to gain customers with a price decrease.
• C) most consumers would rather skip buying a product than pay a higher price.
• D) most consumers are emotionally attached to their favorite products and are unlikely to change, even if the price changes.
• E) firms gain more customers with price decreases than they lose with price increases.

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Definitions:

Production Technology

The methods, equipment, and techniques used in the manufacturing process to produce goods and services.

Sociological Theory

is a set of ideas that provides an explanation for human society, guiding research and thinking in sociology and other social sciences.

George Ritzer

An American sociologist best known for his concept of "McDonaldization," analyzing the effects of globalization and rationalization on society.

Western Domination

The historical and contemporary dominance of Western industrialized nations in global political, economic, and cultural systems.