When there is increased loyalty of customers to a certain brand, their sensitivity to price increase is lesser.Select one:TrueFalse

Answer

The statement is True.

Explanation

When customers develop increased loyalty to a brand, they typically become less sensitive to price increases. This is because a strong emotional connection to a brand can lead consumers to prioritize the perceived value and quality of the brand over its price. Loyal customers may be willing to pay a premium for their preferred brand due to trust, satisfaction with previous experiences, and the uniqueness of products offered. In contrast, customers who are not loyal might switch to competitors if prices rise, indicating a higher sensitivity to price changes. Therefore, increased loyalty often correlates with decreased price sensitivity.