Question

Betty’s Bargain Bags sells gently used, pre-owned designer handbags. On its website, it compares the manufacturer’s suggested retail price (MSRP) for new designer handbags to the Betty’s price for its handbags. In this example, customers’ price sensitivity should be __________ as compared to situations in which customers cannot easily compare prices.

a) lower

b)about the same

C)higher

d)cannot tell (not enough information)

Answer 1

Because the comparison in this case is relatively easy, the consumers will be having a demand which is price sensitive.

Hence the correct option is C) higher.