Navigation Links
Buyers Spend More With Non-Cash Purchases

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:
(Date:11/27/2015)... ... November 27, 2015 , ... The moment you ... for not only fulfilling the needs of advisers and clients but going above ... and providing top-tier customer service. However, there's always room for improvement, which is ...
(Date:11/27/2015)... , ... November 27, 2015 , ... ... largest, most successful and prominent nonprofit healthcare organizations in the country. They have ... with various organizations, and helped advance the healthcare industry as a whole through ...
(Date:11/27/2015)... , ... November 27, 2015 , ... ... center software Q-Suite, announces the incorporation of Asterisk 11 LTS (Long Term Support) ... supported Asterisk 11 LTS brings Q-Suite 5.10 up-to-date with a version of Asterisk ...
(Date:11/26/2015)... ON (PRWEB) , ... November 26, 2015 , ... ... of a real-time eReferral system for diagnostic imaging in the Waterloo region. Using ... BMD and Nuclear Medicine tests directly from their electronic medical record (EMR) without ...
(Date:11/26/2015)... ... 26, 2015 , ... Jobs in hospital medical laboratories and in the imaging ... staffing agency Aureus Medical Group . These fields, as well as ... searching for healthcare jobs through the company’s website, , The leading ...
Breaking Medicine News(10 mins):
(Date:11/27/2015)... --> --> ... The potential to save costs, improve treatment quality and ... fully exploited as yet. Here, particular emphasis is placed ... mobile tablet or directly at the patients, bedside. ... ) -->      (Photo: ...
(Date:11/27/2015)... , Nov. 26, 2015 ... addition of the "2016 Global Tumor ... Country Volume and Sales Segment Forecasts, Innovative ... report to their offering. --> ... of the "2016 Global Tumor Marker ...
(Date:11/26/2015)... November 26, 2015 --> ... combination approach blends immunotherapy with Bremachlorin-photodynamic therapy for advanced ... approach blends immunotherapy with Bremachlorin-photodynamic therapy for advanced cancer. ... approach blends immunotherapy with Bremachlorin-photodynamic therapy for advanced cancer. ... has found that immunotherapy can be efficiently combined with ...
Breaking Medicine Technology: