What does the cost-of-ownership method focus on?

The cost-of-ownership method focuses on the consumer's lifetime costs associated with the product. This approach goes beyond just the initial purchase price and takes into account all costs that the consumer is likely to incur over the entire period of ownership. This can include maintenance, operating expenses, warranties, and any other costs that arise as the product is used over time.

By considering the total cost of ownership, consumers can make more informed decisions, understanding not just what they pay upfront, but what the product will cost them in the long run. This method emphasizes the importance of the overall value and utility that the product provides, rather than just its purchase price or aesthetic appeal. This perspective is particularly useful for durable goods that might require ongoing maintenance or have varying operational costs.