Which of the following is a key reason why customers are more price sensitive?

Customers are often more price sensitive when the expense is relatively large because larger expenses make a more significant impact on their overall financial situation. When individuals face a considerable financial decision, they tend to weigh their options more carefully, leading to a heightened sensitivity to price changes. This sensitivity arises from the desire to maximize value or minimize spending when committing to expenses that may strain their budget.

In contrast, appreciating premium quality, brand loyalty, and limited shopping options typically do not contribute to increased price sensitivity. Customers loyal to a brand may be less concerned about price, as their loyalty can lead them to prioritize quality and brand values over cost. Additionally, if shopping options are limited, customers may have to accept higher prices since they have fewer alternatives available. Thus, the perception of high expenses directly correlates with increased price sensitivity, making it a critical factor in consumer decision-making.