ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Transaction utility describes the happiness or sadness a consumer gets from the perceived value of the deal.
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Transaction utility is the amount of financial savings you obtain from a big-ticket purchase.
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Transaction utility is the logical approach to spending and saving money.
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Transaction utility describes the influence of uncontrollable events on a purchase.
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Detailed explanation-1: -Transactional utility is a term to describe the happiness a consumer gets from the perceived value of the deal. ‘Transactional utility’ was developed by Richard Thaler and is said to be the difference between the actual price and your reference price – the price you expect to pay.
Detailed explanation-2: -Transactional Utility is the quantified satisfaction we get from the process of buying a good with reference to price. If we think something is priced less than it should be, then we derive Transactional Utility from the discount we receive. It feels good to get a good deal.
Detailed explanation-3: -If something is cheaper than the reference price, transaction utility is positive and induces the customer to buy the respective item. In other words, transaction utility is a measure of the joy of getting a bargain, which exerts influence on consumer choice.
Detailed explanation-4: -Economists use the term utility to describe the pleasure or satisfaction that a consumer obtains from his or her consumption of goods and services. Utility is a subjective measure of pleasure or satisfaction that varies from individual to individual according to each individual’s preferences.
Detailed explanation-5: -Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price.