The consumer's price sensitivity is/are influenced by:
A. Who bears the cost
B. What percentage of total expenditure the product represents
C. Who bears the cost and type of retailer from where the customer purchases
D. Consumption of the product by the customer
E. Knowledge about the product
Choose the most appropriate answer from the options given below:

Correct option is D

Price sensitivity refers to how much consumer demand changes in response to a price change. The factors that influence price sensitivity include:
· Who bears the cost (A): If someone else pays, the consumer is less sensitive to price changes.
· What percentage of total expenditure the product represents (B): Consumers are more price-sensitive to high-cost items.
· Consumption of the product by the customer (D): If a product is used frequently, consumers may be more sensitive to price changes.
· Knowledge about the product (E): Informed consumers can compare prices better, making them more price-sensitive.
Option (C) is incorrect because the type of retailer does not directly impact price sensitivity as much as other factors.