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    • Question

      Which factor most reduces price elasticity in banking

      services?
      A High differentiation Correct Answer Incorrect Answer
      B Intense competition Correct Answer Incorrect Answer
      C Low brand loyalty Correct Answer Incorrect Answer
      D Standardized products Correct Answer Incorrect Answer
      E Frequent discounts Correct Answer Incorrect Answer

      Solution

      Differentiation reduces sensitivity to price changes. Why others are incorrect: Competition increases elasticity; Low loyalty increases switching; Standardization increases comparability; Discounts raise price sensitivity. Banking Example: Unique premium services.

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