Final answer:
People usually choose to buy a product or service because it offers better perceived value based on factors like anticipated satisfaction, cost, and information available, often using heuristics to simplify decision-making.
Step-by-step explanation:
Generally, people buy one product or service instead of another because they perceive it to be the better value for them. This perception of value includes various factors such as the belief about the satisfaction that the product or service will provide, the cost, the quality, and information available to the buyer. Since information can be imperfect, buyers may use price as a signal of quality—a more expensive item could be viewed as of higher quality, even if the buyer lacks expertise.
Moreover, when confronted with an abundance of choices and insufficient information, consumers often employ heuristics or cognitive shortcuts to make their decisions. This simplifies the decision-making process enabling consumers to make choices relatively quickly and easily without engaging in extensive problem-solving. For instance, they might purchase the daily special at a restaurant without examining all available options or choose products based on brand loyalty.