Question

"Milton owns a lawncare business. From experience, Milton has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Milton's perception about its products makes _______ pricing a logical choice. "

Answer 1

Answer:

The correct word for the blank space is: cost of ownership.

Explanation:

Cost of ownership refers to the cost of an asset plus the costs that involves possessing the asset. In the case of equipment, the cost of ownership implies the price of the device and all expenses related to having the device operative. Individuals calculate the cost of ownership of the equipment to decide which device to purchase according to their needs and the features competitors offer.