Preston decides to buy a new car. He does a lot of research online and goes to several car dealerships to test drive cars. He finally decides on a car to purchase, but, in order to buy it, Preston must take out a loan. He also must get the car inspected and registered before he can start driving it. In this scenario, which is a nonmonetary cost associated with Preston's car purchase?

Question

Quizplus · Accepted Answer

In this scenario, the time Preston took to test drive various car models is a nonmonetary cost associated with purchasing the car. The most obvious cost is the monetary price of the product, but nonmonetary costs can be equally important in a customer's determination of value. Two nonmonetary costs are the time and effort customers expend to find and purchase desired products.

Preston Decides to Buy a New Car