Watching a movie. You decompose this element by element:
- If I go the the cinema, I see a movie in a dark setting. If I stay at home, I see a movie in a dark setting.
- I can have popcorn and soda either at the cinema or at home.
- I can be with someone at the cinema or at home.
- The sound system at home and at the cinema is similar.
- The screen at the cinema is larger, and they may have 3D glasses, but this isn’t that important to me.
- At home, I can play/pause/forward.
- At the cinema, I pay a premium.
All-in-all, after the decomposition, it appears that the home wins. You get pretty much the same experience, element-by-element, and you don’t have to pay the premium (you do pay something, but it’s less than at the cinema).