A buying situation can involve comparing the costs and benefits of substitute items - such as real sugar to the sugar substitute Equal which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering:
A)a break-even analysis.
B)a marginal analysis.
C)a reference value.
D)a profit equation.

Question

Quizplus · Accepted Answer

The consumer is considering a reference value, which involves comparing the perceived value and benefits of a substitute product (Equal) against the standard product (real sugar) to determine if the higher cost is justified by the benefits (no calories).

A Buying Situation Can Involve Comparing the Costs and Benefits