Final answer:
People tend to evaluate whether they are getting their money's worth by considering perceived value and satisfaction relative to the product's cost, often thinking in terms of percentages rather than absolute savings. This behavioral perspective contrasts with the mainstream economic view, but it aligns with subjective experiences like quality determination, price-quality signaling, and budgeting necessities over luxuries.
Step-by-step explanation:
Feeling like you are getting your money's worth involves evaluating outcomes based on perceived value rather than absolute cost. Behavioral economists note that we often think of gains and losses as percentages relative to a reference point, typically the cost of the product, as opposed to the mainstream economic view where a dollar has the same value irrespective of context ($10 is $10). Therefore, whether you view an expenditure as worthwhile may depend on factors such as the quality of merchandise, the satisfaction derived relative to cost, or even the psychological impact of believing higher prices signal better quality.
For example, one might not walk five minutes to save $10 on a $15 purchase because it represents a significant percentage saving, while the same effort to save $10 on a $1000 purchase feels negligible. This illustrates how our appraisal of 'getting our money's worth' can be irrational when viewed from a purely numerical standpoint. Additionally, the context, such as living on a tight budget, dramatically affects our valuation of money, forcing us to prioritize necessities over luxuries and be more critical of our purchases.