According to the Weber Fechner Law, consumers react to prices in _____ as opposed to _____.1 pointTerms of Emotion / RationalityDecimal Points of .99 / .00Euros / DollarsDollars / EurosPercentage Terms / Absolutes
Question
According to the Weber Fechner Law, consumers react to prices in _____ as opposed to _____.1 pointTerms of Emotion / RationalityDecimal Points of .99 / .00Euros / DollarsDollars / EurosPercentage Terms / Absolutes
Solution
The Weber Fechner Law is a principle in psychology that suggests that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus. In terms of consumer behavior and pricing, this law suggests that consumers are more likely to notice relative differences rather than absolute differences.
So, the answer to the question is: "Percentage Terms / Absolutes". This is because consumers are more likely to notice a price change from 20 (a 100% increase) than a change from 110 (a 10% increase), even though the absolute difference in both cases is $10.
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