Concept
Non-monetary costs refer to the intangible expenses associated with a transaction or decision that are not measured in financial terms, such as time, effort, and opportunity costs. These costs can significantly influence consumer behavior and business strategy by affecting the perceived value of a product or service beyond its price tag.
Relevant Fields:
Concept
Opportunity cost represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. It is a critical concept in economics and decision-making, emphasizing the importance of considering the value of the next best option that is foregone.
Concept
Time management is the strategic process of organizing and planning how to divide your time between specific activities to maximize efficiency and productivity. Effective Time management enables individuals to accomplish more in less time, reducing stress and enhancing work-life balance.
Concept
Psychological cost refers to the emotional or cognitive burdens that individuals experience as a result of making decisions or facing situations, potentially leading to stress, anxiety, or regret. These costs can impact decision-making processes and overall mental well-being, often necessitating careful consideration in both personal and organizational contexts.
Concept
Effort cost refers to the physical and mental energy expended when completing a task or making a decision. It plays a crucial role in determining how individuals allocate their time and resources, often influencing decisions in favor of actions perceived as requiring less effort.
Concept
Decision-making is a cognitive process that involves selecting a course of action from multiple alternatives, often under conditions of uncertainty. It is influenced by various factors such as individual biases, available information, and the decision-making environment.
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Consumer behavior is the study of how individuals make decisions to spend their available resources on consumption-related items. It encompasses the psychological, social, and economic factors that influence purchasing decisions and the use of goods and services.
Concept
Perceived value is the customer's evaluation of the worth of a product or service, influenced by their expectations, experiences, and comparisons with alternatives. It plays a critical role in purchasing decisions, as it determines the amount a customer is willing to pay, often surpassing the actual cost of production.
Concept
Implicit costs represent the opportunity costs associated with using resources that a business already owns, reflecting the loss of potential income from alternative uses. They are non-monetary and not directly recorded in accounting ledgers, influencing economic profit calculations rather than accounting profit.
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