When consumers calculate the value of a product,they:
A)subtract cost of production from market price.
B)eliminate all non-tangible elements that might affect their perception of the product.
C)look at the benefits the product provides then subtract the cost.
D)identify the variable and the fixed components of the product's benefits.

Question

Quizplus · Accepted Answer

Consumers calculate the value of a product by looking at the benefits it provides and then subtracting the cost. It is this cost-benefit analysis that allows consumers to decide whether a product is worth purchasing or not. Option A is incorrect because the cost of production is not relevant to consumers; they are only concerned with the cost to them. Option B is incorrect because non-tangible elements, such as brand image and reputation, can play a significant role in a consumer's perception of a product's value. Option D is incorrect because while identifying the variable and fixed components of a product's benefits is useful for marketers, it is not a factor in consumers' calculation of value.

When Consumers Calculate the Value of a Product,they