Effects of Payment Mechanism on Spending Behavior: The Role of Rehearsal and Immediacy of Payments

Dilip Soman

Journal of Consumer Research, 2001, vol. 27, issue 4, 460-74

Abstract: Past expenses have been shown to influence future spending behavior by depleting available budgets. However, a prerequisite for this relationship is the accurate recall of past payments and the experiencing of the full aversive impact associated with them. This article shows that the use of different payment mechanisms influences both these factors and hence moderates the effects of past payments on future spending. Specifically, past payments strongly reduce purchase intention when the payment mechanism requires the consumer to write down the amount paid (rehearsal) and when the consumer's wealth is depleted immediately rather than with a delay (immediacy). Two experiments show support for the proposed theoretical framework. Copyright 2001 by the University of Chicago.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (86)

Downloads: (external link)
http://dx.doi.org/10.1086/319621 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jconrs:v:27:y:2001:i:4:p:460-74

Access Statistics for this article

Journal of Consumer Research is currently edited by Bernd Schmitt, June Cotte, Markus Giesler, Andrew Stephen and Stacy Wood

More articles in Journal of Consumer Research from Journal of Consumer Research Inc.
Bibliographic data for series maintained by ().