[Image Source] (https://personcenteredtech.com/2015/03/01/ethics-of-disclosure-to-clients-who-pay-with-plastic-or-online-transfers/handing-over-credit-card-articlesize/)
Question
@sarah.lindley asked "Have advancements in technology, such as debit/credit cards and online retailers, led to a decrease in consumers considering opportunity costs when making financial decisions? Have consumers ever really taken the time to consider opportunity costs before purchasing?"
Response
Starting with the second question, yes, consumers have taken the time to consider opportunity cost before making purchases. This does not mean every consumers has done this, but I would like to think close to all consumers have considered opportunity cost at least once while making a purchase. This is because it can be practiced on any level. For example, a kid is given $10 at the fair, they are deciding wether to buy a large sundae for $10 or a hot dog and soda for $6. They end up going with the ice cream, but still considered the hot dog and soda combo that would have left them with some extra cash. A business practices opportunity cost when they consider the cost and benefits of creating a new job position in their company.
Yes, credit cards do decrease a consumers consideration of opportunity cost. I think opportunity cost can be easily overlooked and credit cards specifically aid in this. This is because, unlike the kid who was given $10 in cash, most credit card users are not physically aware of how much money they can actually spend. Also I think the ease of using a credit card also leads to quick decisions and a lack of opportunity cost consideration. Online shopping also creates an easier atmosphere for a decrease in opportunity cost consideration. Again because of the ease
of making a purchase and the lack of something tangible at the time of purchase, consumers may be quick to over look opportunity cost. However, I am undecided if debit cards have as big of an affect on consideration of opportunity cost. This is because while it does simplify the act of making a purchase, most people get alerts on when their balances gets below a certain amount and have easy access to know how much they have in their account.
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