5 How can time be incorporated into the theory of consumer b

5. How can time be incorporated into the theory of consumer behavior? Explain the following comment: \"Want to make millions of dollars? Devise a product that saves Americans lots of time\"

Solution

Time is an important variable in consumer behaviour. The importance of time is a recurrent theme in American literature. Time is a scarce resource that can be valued. The opportunity cost of time adds to the total cost of goods. The value of time to an individual relates to income. Becker\'s work considers household production time.

Time is required for production. It is linked to consumer behaviour. Time allocation is used as a dichotomy of leisure, and, work. Consumers tend to spend more time during a particular season.

Companies gain competitive advantage, leading to higher profits to sales; the products should help consumers save time, and, enjoy the time spent in other activities. This could be ATMs, labour saving appliances, and, innovations in the food retail sector. These products reduce stress. The reasons for buying these products are reducing stress; more time to hobbies & relaxing; reducing the time to commute after working long hours; in case the consumer has children to look after. For instance, Amazon Dash button. It is not only for saving time but, help consumers destress their lives.