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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

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Answers (1)
  1. 24 November, 23:46
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    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.
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