FEATURES OF FINANCIAL BEHAVIOR IN CASH, CARDS AND APPLICATIONS
Keywords:economic psychology, behavioral economics, financial behavior, consumer habits, money preferences
Nowadays market develops new means of payment to force consumers increase their spending readiness. New means of paying (different applications and cards) decrease ‘‘pain of paying’’ and increase readiness of spending. But different means of paying are differently perceived and accepted by the consumers. This research is aimed to reveal some features of spending and financial behavior of consumers depending their preference of cash, cards and applications. Our earlier research proves that using of cash depends on the age. The older persons prefer cash. In certain payments the youngest group prefers doing payments by applications. Unemployed people are more tended to choose cash spending. Those, who generally preferred paying in cash or card, noted that utility bills are paid by app. So, if well-working and trusted system exists people choose application. Reason can be either consumers tend to focus less on the negative feeling associated with the amount paid or with absence of queues and general easiness. Now we tried to discover online consuming features and some psychological characteristics depending of preferences of different means of payment.
Bar-Anan Y., Liberman N., Trope Y. The association between psychological distance and construal level: evidence from an implicit association test //Journal of Experimental Psychology: General. – 2006. – Т. 135. – №. 4. – С. 609. https://doi.org/10.1037/0096-34126.96.36.1999
Bogodistov Y., Dost F. Proximity begins with a smile, but which one? Associating non-Duchenne smiles with higher psychological distance //Frontiers in psychology. – 2017. – Т. 8. – С. 1374. https://doi.org/10.3389/fpsyg.2017.01374
Bogodistov Yevgen, Moormann Jürgen, Hoos Leo, Käfer Jonas Cash vs. Card vs. Mobile Payment: Psychological Mechanisms for Means of Payment: Summary of research results, 2021 DOI:10.13140/RG.2.2.17823.18088
Feinberg R. A. Credit card s as spending facilitating stimuli: A conditioning interpretation //Journal of consumer research. – 1986. – Т. 13. – №. 3. – С. 348-356. https://doi.org/10.1086/209074
Hirschman E. C., Holbrook M. B. Hedonic consumption: Emerging concepts, methods and propositions //Journal of marketing. – 1982. – Т. 46. – №. 3. – С. 92-101. https://doi.org/10.2307/1251707
Incekara-Hafalir E., Loewenstein G. The impact of credit cards on spending: a field experiment //Available at SSRN 1378502. – 2009. DOI:10.2139/ssrn.1378502
Prelec D., Loewenstein G. The red and the black: Mental accounting of savings and debt //Marketing science. – 1998. – Т. 17. – №. 1. – С. 4-28. DOI:10.1287/mksc.17.1.4
Prelec D., Simester D. Always leave home without it: A further investigation of the credit-card effect on willingness to pay //Marketing letters. – 2001. – Т. 12. – С. 5-12.
Raghubir P., Srivastava J. Monopoly money: The effect of payment coupling and form on spending behavior //Journal of experimental psychology: Applied. – 2008. – Т. 14. – №. 3. – С. 213. https://doi.org/10.1037/1076-898X.14.3.213
Raghubir P., Srivastava J. The denomination effect //Journal of Consumer Research. – 2009. – Т. 36. – №. 4. – С. 701-713. https://doi.org/10.1086/599222
Runnemark E., Hedman J., Xiao X. Do Consumers Pay More Using Debit Cards than Cash? An Experiment. – Working Paper, 2014. – №. 2014: 21. https://doi.org/10.1016/j.elerap.2015.03.002
Soman D. Effects of payment mechanism on spending behavior: The role of rehearsal and immediacy of payments //Journal of Consumer Research. – 2001. – Т. 27. – №. 4. – С. 460-474. https://doi.org/10.1086/319621
Soman D. The effect of payment transparency on consumption: Quasi-experiments from the field //Marketing Letters. – 2003. – Т. 14. – С. 173-183. DOI:10.1023/A:1027444717586
Trope Y., Liberman N. " Construal-level theory of psychological distance": Correction to Trope and Liberman (2010). – 2010. https://doi.org/10.1037/a0018963
Copyright (c) 2023 Davit Hayrapetyan, Nvard Petrosyan
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.