Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Time isn’t money

30.08.2004


"Our research shows that the concept of time is easier to write off than is money," said Erica Okada, a University of Washington assistant professor of marketing who co-authored the study with Stephen Hoch, professor of marketing at the University of Pennsylvania’s Wharton School. "People are relatively certain about how much their money is worth, but when it comes to their time, people are less certain about its value."

Unlike previous research that focused almost exclusively on money-based transactions, this study used time as a form of currency. Researchers conducted five experiments to determine how the inherently ambiguous value of time influences consumer purchasing behavior.

Three hundred sixty undergraduate students completed a questionnaire that presented two scenarios in which they were told they had already consumed a product that they had acquired in exchange for either four hours of work or $50. In one scenario, the students were told their experience with the product was good, in the other negative.



Okada and Hoch noted a greater difference in reaction between a good experience and a bad experience among those who paid in money. The difference between the levels of satisfaction following a good experience and dissatisfaction following a bad experience was significantly less among those who paid in time.

As suspected, said Okada, the experiments revealed that consumers have an easier time rationalizing a bad outcome after paying with time than hard-earned cash. The ambiguity in the value of time allows people to do this, whereas it is more difficult to do so with money, she added.

Today, money is the most universal form of currency. It is not, however, necessary for all exchange transactions. Long before money was institutionalized, Okada said, goods were exchanged among people in the form of bartering. In certain parts of the world, moneyless exchanges exist as the dominant form of trade even today.

"In contemporary economic systems, consumers are used to transacting primarily with money and are accustomed to assessing its value," said Okada. "The average consumer in today’s world hasn’t learned how to assess the price or value of time."

The study, "Spending Time Versus Spending Money," appears in the September issue of Journal of Consumer Research.

Erica Okada | EurekAlert!
Further information:
http://www.u.washington.edu

More articles from Studies and Analyses:

nachricht Europe’s Demographic Future. Where the Regions Are Heading after a Decade of Crises
10.08.2017 | Berlin-Institut für Bevölkerung und Entwicklung

nachricht Scientists reveal source of human heartbeat in 3-D
07.08.2017 | University of Manchester

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

A Map of the Cell’s Power Station

18.08.2017 | Life Sciences

Engineering team images tiny quasicrystals as they form

18.08.2017 | Physics and Astronomy

Researchers printed graphene-like materials with inkjet

18.08.2017 | Materials Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>