Respuesta :
To avoid an additional charges
A consumer might react to a negative incentive because there is the consideration which leads to the additional charges due to which customer change his or her replies in predictable ways. In this instance of a negative influence, their intensity will be restricted on allocation and they would not get a great return.
A consumer might respond to a negative incentive as it could be a chance to avoid additional charges.
Further explanation:
Consumers respond to incentives: Consumers respond to incentives in order to maximize their profits or satisfaction. By responding to the positive incentives, a consumer can raise his/her profits to the maximum level. Whereas, by responding to the negative incentives, a consumer can avoid any potential losses and thereby, can maximize his/her profits level.
Negative incentive: A negative incentive is an inducement to an individual to change the current behavior in order to prevent any potential losses in the future. The main reason why consumers respond to a negative incentive is to avoid the additional charges that could be there in the future, to maximize the profits.
Thus, to prevent additional charges, a consumer might respond to a negative incentive.
Learn more:
- Learn more about the elasticity of demand https://brainly.com/question/11290773
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Answer details:
Grade: Middle School
Subject: Economics
Chapter: Consumer behavior
Keywords: a consumer might respond, to a negative incentive, it could be a chance, to purchase a very popular item, buy a good, cheap price, take advantage, sale, avoid additional charges, the consumer responds to incentives, to maximize the profits, satisfaction, positive incentives, avoid potential losses.
