Which of the following scenarios might lead to increased price sensitivity among customers?

Increased price sensitivity among customers typically occurs when they can easily compare prices. This scenario allows consumers to evaluate their options more effectively, making them more aware of the differences in pricing between various products or services. When price is more transparent, customers are more likely to notice when a competitor offers a better deal, leading them to prioritize price over brand loyalty or product features. In a competitive market, this heightened awareness drives customers to seek out the best value, thereby increasing their sensitivity to price changes.

Luxury items, while often associated with higher prices, typically see lower price sensitivity due to their niche market and the value customers place on exclusivity. Familiarity with a brand can create loyalty that may reduce price sensitivity, as customers may prefer their trusted brand over others, even if it is priced higher. Lastly, limited income can impact the likelihood of making purchases but does not inherently increase price sensitivity when options are limited; it may instead lead customers to prioritize necessity over luxury. Thus, the ability to compare prices effectively is a critical factor in increasing price sensitivity among customers.