The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the travel is referred to as the:

A. expenditure effect

B. price-quality effect

C. unique value effect

D. shared cost effect

Question

Business

Ashley Marks

24 November, 22:34

The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the travel is referred to as the:

A. expenditure effect

B. price-quality effect

C. unique value effect

D. shared cost effect

+5

Answers (1)

Know the Answer?

Jean Daugherty · Answer 1

The correct answer is D. shared cost effect

Explanation:

The shared cost effect refers to the reduction in price sensitivity of a customer created through the perception that part of the purchase price is paid for by a third party of the firm itself.

The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the travel is referred to as the:A. expenditure effectB. price-quality effectC. unique value effectD. shared cost effect

The fact that corporate travelers are less price sensitive than most leisure travelers because the corporation pays for the travel is referred to as the:

A. expenditure effect

B. price-quality effect

C. unique value effect

D. shared cost effect