Dictionary of Marketing Terms: cost-benefit trade-off
cost-benefit trade-off
desirability of a product or service in terms of the expected benefit relative to the cost; also called cost-benefit analysis. For example, a homeowner might weigh the expense of a lawn care service against the benefit of more leisure time and a better looking lawn. A business weighs the expense of a new computer system against the benefit of reduced manual effort and errors. If the expected benefit exceeds the cost, the purchase is justified by a positive cost-benefit trade-off.