Investopedia

Continue to Site »

Search Cost

Filed Under »
Dictionary Says

Definition of 'Search Cost'

The time, energy and money expended by a consumer who is researching a product or service for purchase. Search costs include the opportunity cost of the time and energy spent on searching - time and energy that could have been devoted to other activities - and perhaps the money spent to travel between stores examining different options, purchase research data or consult an expert for purchasing advice.

Investopedia Says

Investopedia explains 'Search Cost'

Search costs tend to be higher on big-ticket items because it makes more sense to spend time, energy and possibly money researching how to get the most reliable and affordable car than it does researching how to get the tastiest and most affordable sandwich. The consequences of making a bad purchase decision on an expensive item are much greater than those for an inexpensive item.



Thanks to the internet, buyers face lower search costs for almost anything they want to buy today than they did two decades ago, because users can now get fast, accurate information on products and services without even having to leave home.

Articles Of Interest

  1.

    Layaway Plans: Get The Goods Without Going Into Debt

    If using a layaway plan keeps you from having to use your credit card, it could be a smart move.

  2. 5 Ways To Control Emotional Spending

    Follow these five simple steps to keep your spending under control.

  3. Lose 10 Pounds Of Overspending

    Bad spending habits are not always obvious. What could you be doing to ensure that your money's going where it should?

  4. 5 Money-Saving Shopping Tips

    Reducing the amount you spend is the easiest way to make your money grow.

  5. Shopping Online: Convenience, Bargains And A Few Scams

    Shopping from the comfort of your couch has major benefits - and some unpleasant side effects.

  6. Coupon Shopping: Clip Your Way To Savings

    Use coupons strategically to score big savings on everyday purchases.

  7. 12 Ways To Shop Smarter

    The early bird may catch the worm, but in shopping, the worm will come to those who wait.

  8. The Economics Of Stay-At-Home Moms

    If an at-home mom was getting paid for all of the work she does, how much would she get?

  9. Best Valentine's Day Gifts For Your Man That Are Under $20

    These inexpensive products make good gifts for the man in your life.

  10. Best Valentine's Day Gifts For Women That Are Under $20

    Clichés are clichés for a reason. Sometimes the most clichéd gift can actually be an ideal one.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center