In which situation are consumers likely to be less price sensitive?

Consumers are likely to be less price sensitive when they are purchasing necessities. This is because necessities are essential items that individuals need for their daily lives, such as food, clothing, and basic healthcare. When people require these items, they often prioritize the need over the cost, leading to reduced sensitivity to price changes. The urgency and importance of acquiring necessities mean that consumers are more willing to pay a premium rather than forgo an essential item due to price concerns.

While trust in a brand and having more disposable income can influence price sensitivity, they do not universally reduce sensitivity as consistently as when consumers are dealing with necessities. Additionally, the act of comparing multiple options typically increases price sensitivity, as consumers look for the best value among available choices. Overall, the pressing nature of necessities solidifies why price sensitivity decreases in these instances.