When consumers calculate the value of a product, they
A) subtract the cost of production from the market price.
B) eliminate all nontangible 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 the product provides and then subtracting the cost. This takes into account both the tangible and intangible elements that affect their perception of the product. Options A, B, and D are incorrect as they do not accurately reflect how consumers calculate the value of a product.

When Consumers Calculate the Value of a Product, They