earticle

영어

Consumers often face monetary and non-monetary costs when purchasing goods. Experience goods, for example, require consumers to invest time and money to acquire and use a product, and time requirements may not be fully known proir to making a purchase. Unlike monetary costs, non-monetary costs are often not explictily stated and are therefore subjectively evaluated by consumers, suggesting that consumers’ perceived costs and the costs assumed by researchers may not coincide. We propose a model that allows for consumer’s subjective evaluation of marginal time costs through perception parameters and provide solutions to estimate the model. We apply the proposed model to three online course datasets o f volumetric demand and floor cleaning service data of discrete choice. The proposed model fits the data better, improves predictions, and leads to different managerial implications. Implication for Product line design.