Which is a TRUE statement about price premiums for differentiated products? Consumers are relatively insensitive to premium prices. Consumers are highly sensitive to price premiums. Consumers are ambivalent to price premiums. None of these

Consumers are relatively insensitive to premium prices.

Explanation:

Premium pricing is generally done by the firms to prove that their products are competitive enough in the market. Also premium pricing denotes that the product has high value in the market. Companies fixing the prices know that the consumers will not investigate if it truly valuable.

The organisations also establish a brand name to prove that they are luxury brand. So the customers are also insensitive to the prices of those products. For example Apple phones, Rolex watches etc.

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