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

Consumers tend to be less price sensitive in situations where they are purchasing necessities because their primary motivation is to fulfill basic needs, such as food, shelter, and healthcare. These items are essential for survival or well-being, meaning that consumers may prioritize obtaining them over seeking the lowest price. When the product is viewed as a necessity, the urgency and importance often outweigh considerations of cost, leading to a greater willingness to pay a higher price if required.

While trusting a brand, comparing options, and having disposable income can influence price sensitivity, the context of necessity makes it particularly salient. Trust in a brand can lead to loyalty that may lessen price sensitivity, but it typically applies in situations where the consumer has other alternatives. Comparing multiple options often encourages price sensitivity as consumers seek the best deal. Similarly, with more disposable income, individuals may still assess needs against their current financial situation, but when it comes to necessities, that assessment is largely overshadowed by the need to make the purchase regardless of price. Therefore, purchasing necessities stands out as a clear situation where price sensitivity diminishes significantly.