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06.10.2023

More of the same: Painful payment methods decrease variety seeking

verfasst von: Liang Huang, Rafay A. Siddiqui, Anastasiya Pocheptsova Ghosh

Erschienen in: Marketing Letters

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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.

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Fußnoten
1
Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).
 
2
Note that we observed no significant differences between the three less painful payment methods, consistent with prior work demonstrating no difference in pain of payment between credit cards and debit cards (Shah et al., 2015; Thomas et al., 2011).
 
3
The effect of payment methods on variety seeking and need for justification still holds without controlling for the experiment’s location (variety seeking: F(1,299) = 6.31, p = .013; need for justification: F(1,299) = 3.64, p = .058).
 
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Metadaten
Titel
More of the same: Painful payment methods decrease variety seeking
verfasst von
Liang Huang
Rafay A. Siddiqui
Anastasiya Pocheptsova Ghosh
Publikationsdatum
06.10.2023
Verlag
Springer US
Erschienen in
Marketing Letters
Print ISSN: 0923-0645
Elektronische ISSN: 1573-059X
DOI
https://doi.org/10.1007/s11002-023-09706-2