Consumer Knowledge and Consumption: A Human Capital Model‪.‬

ABSTRACT Using the Human Capital Model, and taking a Household Production Function approach, this paper lays out a theoretical foundation to illustrate the structural relationships between consumer knowledge and consumption efficiency. Consumers' acquisition of product knowledge and the development of their buying skills are considered, in this model, as household commodities, which are produced and consumed at home. Production and consumption of such commodities outside the traditional scope of the market may reduce the household's costs of shopping in the market, and eventually, increase the efficiency of household consumption. Important implications for researchers, marketers, and consumers are suggested.