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 marginal analysis.
B)a profit equation.
C)a break-even analysis.
D)a reference value.

Question

Quizplus · Accepted Answer

A reference value is used when consumers compare the price and benefits of a substitute product to a standard product, like comparing Equal to real sugar based on calorie content and cost.

A Buying Situation Can Involve Comparing the Costs and Benefits