Navigation Links
Buyers Spend More With Non-Cash Purchases
Date:9/8/2008

Researchers say it's the 'pain of paying' that drives consumer choices

MONDAY, Sept. 8 (HealthDay News) -- You spend less when paying with cash, and more when using credit cards, gift cards or gift certificates, according to a new study.

The findings, published in the September issue of the Journal of Experimental Psychology: Applied, also show that people spend less when they have to estimate expenses in detail.

"The more transparent the payment outflow, the greater the aversion to spending, or higher the 'pain of paying,' " researchers Priya Raghubir, of the Stern School of Business at New York University, and Joydeep Srivastava, of the Robert H. Smith School of Business at the University of Maryland, College Park, wrote.

The researchers asked participants to answer questions about how much they would spend using cash versus various cash equivalents in various buying scenarios. The scenarios included paying for a vividly described restaurant meal or estimating the expense to pay for a Thanksgiving dinner item by item rather than as a whole.

The researchers attributed the difference in spending behavior to the way cash can reinforce the pain of paying.

In another study, participants received either $1 in cash or a $1 "gift certificate" to buy candy. At first, they were more willing to spend the gift certificate than the cash. But after having the gift certificate for an hour, thus treating it like cash, the participants became less likely to spend it -- a sign that they had assimilated its value.

"The studies suggest that less transparent payment forms tend to be treated like [play] money and are hence more easily spent (or parted with)," the authors wrote. "Treating nonlegal tender as play money leads to overspending that authorities can warn consumers about."

More information

The American Psychological Association has more about how finances can affect your mental well-being.



-- Kevin McKeever



SOURCE: American Psychological Association, news release, Sept. 7, 2008


'/>"/>
Copyright©2008 ScoutNews,LLC.
All rights reserved

Related medicine news :

1. Chair, Ranking Member of U.S. House Judiciary Committee Urge DOJ to do Careful Study of Environmental Record of Vedanta/Sterlite, Other Would-Be Buyers of ASARCO
2. Meetings with Pre-Screened Verified China Suppliers Help 14 Top Buyers, Including Brookstone and Staples, Save Time and Cut Sourcing Costs
3. Buyers Health Care Action Group Pilots New Bridges to Excellence Program for Depression
4. EDR Poll Finds Environmental Professionals, Property Buyers and Lenders Eager to Apply New Vapor Intrusion Standard During Real Estate Transactions to Protect Health and Investments
5. Supplier Assessments to Help Buyers Identify Reliable China Exporters
6. Republican and Democratic Voters View Home Care as a Solution to Rising Medicare Spending, Harris Survey Finds
7. New Survey Reveals How Much Employers Spend on Incentives for Health Management Programs
8. CVS/pharmacy Makes It Easier for Consumers to Save Money and Track Spending with Health Savings and Flexible Spending Accounts
9. Healthcare Industry Spending on Telecommunications Services Hits $55 Billion Over Next Five Years, Says Insight Research
10. Spending Doesnt Improve Patients Perception of Care
11. Diabetes Drugs Emerge as Top Force in Drug Spending Growth
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... ... in a crisis. Her son James, eight, was out of control. Prone to extreme mood ... something upset him, he couldn’t control his emotions,” remembers Marcy. “If there was a ... children and say he was going to kill them. If we were driving on ...
(Date:6/24/2016)... San Francisco, CA (PRWEB) , ... June 24, ... ... at CitiDent, is now offering micro-osteoperforation for accelerated orthodontic treatment. Dr. Cheng has ... , self-ligating Damon brackets , AcceleDent, and accelerated osteogenic orthodontics. , ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... People across ... in Genome magazine’s Code Talker Award, an essay contest in which patients and their ... award to be presented at the 2016 National Society of Genetic Counselors (NSGC) Annual ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... Investment Group (TGIG), has initiated cultivation and processing operations at its production facility, ... Pahrump, Nevada. , Puradigm is the manufacturer of a complete system of proactive ...
(Date:6/24/2016)... ... June 24, 2016 , ... Venture Construction Group (VCG) sponsors ... on June 20th at the Woodmont Country Club at 1201 Rockville Pike, Rockville, Maryland, ... to helping service members that have been wounded in battle and their families. Venture ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... , June 23, 2016 ... "Pharmaceutical Excipients Market by Type (Organic Chemical (Sugar, ... Formulation (Oral, Topical, Coating, Parenteral) - Global Forecast to ... The global pharmaceutical excipients market ... at a CAGR of 6.1% in the forecast period ...
(Date:6/23/2016)... , June 23, 2016 Research and ... News Issue 52" report to their offering. ... influenza treatment creates a favourable commercial environment for MedImmune to ... patient base that will serve to drive considerable growth for ... would serve to cap sales considerably, but development is still ...
(Date:6/23/2016)... , June 23, 2016 ... Oticon , industry leaders in advanced ... launch of Oticon Opn ™, the world,s first ... of possibilities for IoT devices.      (Photo: ... Oticon introduces a number of ,world firsts,: ...
Breaking Medicine Technology: