Interaction cost can comprise work,

cost In Production (economics), production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one o ...

s, and other

expense An expense is an item requiring an outflow of money, or any form of fortune in general, to another person or group as payment for an item, service, or other category of costs. For a tenant, rent is an expense. For students or parents, tuition ...

s, required to complete a task or

interaction Interaction is action that occurs between two or more objects, with broad use in philosophy and the sciences. It may refer to: Science * Interaction hypothesis, a theory of second language acquisition * Interaction (statistics) * Interaction ...

. This applies to several categories, including: *

Economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with t ...

: the interaction cost of a purchase includes the requirements to complete it, and differ in costs for customers and vendors. Method of payment offered may factor into both

transaction cost In economics and related disciplines, a transaction cost is a cost in making any economic trade when participating in a market. Oliver E. Williamson defines transaction costs as the costs of running an economic system of companies, and unlike pro ...

and interaction cost. Reducing steps for customers can be a service offered by the vendor. Interaction cost should be considered when clients choose vendors. Customers prefer to have choice about their interactions cost. In

self-checkout Self-checkouts (SCOs), also known as assisted checkouts (ACOs) or self-service checkouts, are machines that provide a mechanism for customers to complete their own transaction from a retailer without needing a traditional staffed checkout. When ...

, work is moved to the customer. *

Politics Politics (from , ) is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of resources or status. The branch of social science that stud ...

: Specific interaction cost can be increased by law for political gains. *

User interface In the industrial design field of human–computer interaction, a user interface (UI) is the space where interactions between humans and machines occur. The goal of this interaction is to allow effective operation and control of the machine f ...

: In a computer menu with a

graphical user interface The GUI ( "UI" by itself is still usually pronounced . or ), graphical user interface, is a form of user interface that allows User (computing), users to Human–computer interaction, interact with electronic devices through graphical icon (comp ...

, some designs require more clicks from the user in order to make a selection. With a

dropdown menu A drop-down list (abbreviated drop-down, or DDL; also known as a drop-down menu, drop menu, pull-down list, picklist) is a graphical control element, similar to a list box, that allows the user to choose one value from a list. When a drop-do ...

, one click (or touch or hover) may reveal a hidden menu (sub menu), with a second click required to select the menu option. If the entire menu were displayed all along, as in a

navigation bar A navigation bar (or navigation system) is a section of a graphical user interface intended to aid visitors in accessing information. Navigation bars are implemented in file browsers, web browsers and as a design element of some web sites. File br ...

, only one click would be required, but the menu would occupy more screen space. Sub-menus require even more care from the user to make a desired selection.

References

Design Communication Accounting Regression analysis

Further reading

References