How buyers respond to the price modifications

Question

Briefly illustrate how buyers respond to the price modifications?

Answer 1

Depending on the raise or reduction in price rates, buyers might respond accordingly. Some of the buyers might suppose that quality of the product might have decreased to reduce in price or that the company might not be selling the product as per prospect. The other supposition is that buyers might make is that prices might go down in the future and thus might delay purchase. On the other hand raised price might lead to a reduction in the demand as the product might be more costly for consumers who might switch to the other seller providing similar products at low prices.