Opportunity cost is defined as the value of the next best alternative forgone as a result of making a choice.
The analysis of opportunity cost is very important in consumer buying behavior. It is also a key concept in economics as it implies the choice between desirable but exclusive results.
The opportunity cost affect the daily life decisions because we always look for alternatives. And we always think in terms of the next best possibility. For instance, if you have got $100 to spend, you can do that with friends, watching a movie or buying a present for your loved one.