Explain and give an example of a mental transaction cost.
Mental transaction cost is where a consumer thinks about whether to make a purchase or not. For example, people use EBAY and love to buy and buy. We use EBAY because we want things for cheap and the cheaper the better. The less something cost the easier it is to buy and there is little doubt about purchasing that item. Now with EBAYs new protection it has taken some thought processing out of deciding to buy a product because of not receiving your item, liking your item, or satisfaction with your product. Or like others mentioned in their blogs, shipping cost. I know I will find a cheap product and look at the shipping and it is outrageously high. That puts up a flag and doubt about the purchase so I will look for the same product for cheap with zero to little shipping cost.
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