Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because:
A) the cost of gathering information about paper towels is very small.
B) the cost of gathering information about cars is less than the cost of gathering information about paper towels.
C) the cost of making a mistake when buying a car is significantly greater than the cost of making a mistake buying paper towels, so that the cost of gathering information about cars is smaller than the benefit that can be gained.
D) the net benefit from gathering additional information about paper towels is likely much greater than the net benefit derived from gathering additional information about cars.

Question

Quizplus · Accepted Answer

The cost of making a mistake when buying a car is significantly greater than the cost of making a mistake buying paper towels, so consumers are more willing to invest time in researching cars to minimize the risk of making a costly mistake. This is not the case with paper towels, which have a relatively low cost and are not a high-stakes purchase.

Consumers Are Generally Willing to Spend More Time Researching Cars