William is an organizational buyer for Goodlife Tires. He purchases rubber for Goodlife. There are several suppliers that all offer basically the same grade of rubber. This situation will have what likely effect on William's price sensitivity?

Question

Multiple choice question.

There is no way to determine William's price sensitivity.

William will not be price sensitive.

William will be price sensitive.

This situation will have no effect on William's price sensitivity.

Answer 1

In the described scenario where several suppliers offer basically the same grade of rubber, William is likely to be price sensitive. When products are perceived as similar or homogeneous, buyers tend to focus on price as a key differentiator.

Therefore, the correct answer is:

William will be price sensitive.