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Human and cognitive effort has been the topic of many studies appearing in other disciplines<br />

including operations management, psychology, decision theory, and economics (Youngdahl and<br />

Kellog 1997; Bettman, Johnson, and Payne 1990). However, consumer effort expenditures have<br />

received significantly less attention within the marketing literature (Berry, Seiders, and Grewal<br />

2002), perhaps because product or service attributes that aim to save effort are perceived as being<br />

the same as, and as a result are lumped together with, those that aim to save time (Brown 1990).<br />

Thus, in a retail context, consumers view both time and effort as costs that are associated with<br />

obtaining the desired product and/or service. In the decision-making process, consumers must<br />

decide if the costs of obtaining the desired product/service are worth the benefits they will receive<br />

from the purchase.<br />

Cost-Benefit Analysis<br />

The driving force that motivates consumers to seek convenience involves saving both time<br />

and effort expenditures. According to Prest and Turvey (1965, p. 683), “Cost-benefit analysis is a<br />

practical way of assessing the desirability of projects” and “implies the enumeration and evaluation<br />

of all the relevant costs and benefits.” When deciding between several alternatives (e.g., whether to<br />

shop in a traditional store or in a virtual store), consumers determine the costs and benefits<br />

associated with each and compare those costs to the benefits.<br />

In the decision-making process, time and effort are significant consumer costs and are often<br />

considered along with money and other resources (Jacoby, Szybillo, and Berning 1976; Bhatnagar,<br />

Misra, and Rao 2000). Consumers choose online shopping because it facilitates the steps in the<br />

decision process, saving consumers both time and effort in the search, alternative evaluation, and<br />

purchase stages. Bhatnagar, Misra, and Rao (2000) apply cost-benefit analysis to explain why<br />

consumers choose to shop online:<br />

[Internet stores] tend to reduce the time the consumer spends on shopping (travel<br />

time, time spent parking, time spent traveling from the parking lot to the store, time<br />

spent in the checkout lines) either directly or indirectly. … The only time component<br />

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