Convenience Premium
The extra price paid for a product or service that hands a task from the buyer to a provider.
What it is
The research on buying time asks whether the hand-off is worth the price to the buyer. The label is ours.
In effect
The article on why we pay for convenience for the price of a delivery, a repair done by someone else or a one-tap payment draws on it.
What it does not say
It is a descriptive label and not a measured quantity. It does not say that paying the premium is wise or unwise for any one buyer, and the studies it draws on did not price individual services.
Sources
- Whillans, A. V., Dunn, E. W., Smeets, P., Bekkers, R., & Norton, M. I. (2017). Buying time promotes happiness. Proceedings of the National Academy of Sciences, 114(32), 8523-8527.
- Hershfield, H. E., Mogilner, C., & Barnea, U. (2016). People who choose time over money are happier. Social Psychological and Personality Science, 7(7), 697-706.