lectur4-page11 - Admittedly there are other reasons we go...

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Don’t believe it. Folks can generally save a little money on many goods by ordering items through the mail and have the item delivered to their front door. Why do people drive (cost) to Walmart, wander around trying to find what they are looking for (cost), stand in a long, slow line waiting (cost) to purchase an item, then drive all the way back home (cost)? Why do we do this? Because we want it NOW!!! We don’t want to wait three or four days for it to be delivered to our door. We want it NOW, and we are willing to incur the additional cost (transaction cost) associated with having it NOW.
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Unformatted text preview: Admittedly, there are other reasons we go to the store and “shop” around. Some of us like to see, touch and try a product before we purchase it. Some of us just like to wander around and look at the many products we are blessed to have at our finger tips. I am not much of a “go to the store shopper.” I prefer to shop for many things with mail order catalogs, dial 1-800-xxx-yyyy, or order over the internet and have it delivered to the door. Are there any transaction costs associated with this method of shopping? Sure. What are they? 11...
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