Opportunity Cost Neglect

• Main Authors: Frederick, Shane, Novemsky, Nathan, WANG, Jing (Jane), Dhar, Ravi, Nowlis, Stephen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Marketing; Sales and Merchandising
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1295; https://ink.library.smu.edu.sg/context/lkcsb_research/article/2294/viewcontent/WangJ2009OpportunityCost.pdf
• Institution: Singapore Management University

To properly consider the opportunity costs of a purchase, consumers must actively generate the alternatives that it would displace. The current research suggests that consumers often fail to do so. Even under conditions promoting cognitive effort, various cues to consider opportunity costs reduce pu...