Question

How do consumers use cost-benefit analysis? Why do consumers make different decisions using this process?

Answer 1

People's opinions, tastes, and values differ. These are oall influence on how they see the good and bad in all the outcames that they are faced with. People face different situations like wealth and income or age and gender, that affect how they calculate the worth of things.

Answer 2

Consumers use cost-benefit analysis whenever they need to make a decision. Cost-benefit analysis occurs when you study a decision by analyzing the costs that this will represent (money, time, opportunity, etc.) and contrasting it to the benefits it might bring you. By doing this analysis, a consumer can better decide whether the action is worth taking.

Even though the process might be the same, consumers can still make different choices. This is because not everyone appreciates and values the same things in life. Moreover, some people might be more risk averse, and they might require a lot of benefits in exchange for any risk.