More of the same: Painful payment methods decrease variety seeking

Liang Huang (), Rafay A. Siddiqui () and Anastasiya Pocheptsova Ghosh ()
Additional contact information
Liang Huang: Tsinghua University
Rafay A. Siddiqui: Santa Clara University
Anastasiya Pocheptsova Ghosh: University of Arizona

Marketing Letters, 2024, vol. 35, issue 4, No 2, 533-545

Abstract: Abstract Consumers can choose to purchase more or less varied product assortments. The present research demonstrates that the payment method used for purchase affects the variety of options selected. Using a mix of secondary data analysis and lab experiments, we show that payment methods that elicit a higher pain of payment, such as cash, decrease variety seeking. We also elucidate the process underlying this choice outcome: as the pain of payment increases, consumers experience a higher need to justify choice, increasing the share of options that are easier to justify (e.g., one’s favorites). Our findings offer a useful tool for managers to influence the composition of multi-item purchases and for policymakers to affect well-being via variety seeking.

Keywords: Variety seeking; Pain of payment; Payment methods (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11002-023-09706-2

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