Question

Non monetary costs which can inflence the pricing ofservices

Answer 1

When a customer buys a product, he is not only spending money, he is spending other things as well. These things are called non-monetary costs and they are spent in the form of time, convenience, effort and psychology (Businessdictionary, n.d.). In recent years economists have recognized that monetary price is not the only sacrifice consumers make to obtain products and services. Demand, therefore, is not just determined by monetary price but is influenced by other costs as well. Non-monetary costs has become an important concept in social marketing.