scholarly journals The easy-money effect: credit card spending and hard-work reminders

2017 ◽  
Vol 34 (7) ◽  
pp. 541-551 ◽  
Author(s):  
King-Yin Wong ◽  
Michael Lynn
Keyword(s):  
Implicit Association Test ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Association Test ◽  
Hard Work ◽  
Implicit Association ◽  
Consumer Spending ◽  
Content Type ◽  
Practical Implications

Purpose This research paper aims to examine the proposed easy-money effect of credit cards, which stimulates consumers to overspend. This paper shows how such an easy-money effect can be weakened. Design/methodology/approach In Study 1, an implicit association test was conducted with a sample of 169 participants to test the proposed credit card easy-money effect. In Study 2, experimental data were collected online from 365 participants to test the effectiveness of a hard-work reminder in weakening credit cards’ easy-money effect on consumer spending. Findings The proposed credit card easy-money effect exists, with spendthrift (ST) participants associating money with hard work less in the implicit association test after being presented with a credit card cue versus neutral cue. The results from Study 2 show that ST participants spent more on their dinner than tightwad participants when shown a credit card cue. However, this effect could be weakened when STs were also reminded of their hard work by a picture accompanied with words. Practical implications This paper suggests that credit cards’ spending-stimulating effect is due to consumers’ associations between credit cards and easy money. Based on this notion, this paper suggests conditions in which credit cards will stimulate more and less spending. Originality/value This is the first research attempt to examine the credit cards’ easy-money effect and the effectiveness of reminding consumers of their hard work to mitigate credit cards’ long-established spending-stimulating effect.

scholarly journals Credit card cue effect

2019 ◽  
Vol 38 (2) ◽  
pp. 368-383
Author(s):  
King Yin Wong ◽  
Michael Lynn
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Well Being ◽  
Financial Security ◽  
Consumer Spending ◽  
Content Type ◽  
Moderation Effect ◽  
Show Evidence

Purpose The extant literature has mixed results regarding the credit card cue effect. Some showed that credit card cues stimulate spending, whereas others were unable to replicate the findings or found that cues discourage consumer spending. The purpose of this paper is to investigate how consumers’ sensitivity to the pain of payment affects their mental associations about credit cards and how the differences in credit card associations moderate the credit card cue effect on spending, providing a possible explanation for the mixed results in the literature. Furthermore, this paper examines the role of consumers’ perceived financial well-being, measured by their perceptions of current and future wealth and their sense of financial security, in mediating this moderation effect. Design/methodology/approach An experimental study was conducted with a sample of 337 participants to test the hypothesized model. Findings After being shown credit card cues, spendthrift participants had more spending-related thoughts and less debt-related thoughts, perceived themselves as having better financial well-being and consequently spent more than tightwad participants. Originality/value To the authors’ knowledge, this is the first study to investigate the direct link between an exposure to credit card cues and perceived financial well-being, and one of the few to show evidence of the moderating effect of consumers’ sensitivity to the pain of payment on spending when credit card cues are present. This study suggests that marketers may use credit card cues to promote consumer spending, whereas consumers, especially spendthrifts, should be aware of how credit card cues may inflate their perceived financial well-being and stimulate them to spend more.

Does knowing overcome wanting? The impact of consumer knowledge and materialism upon credit card selection with young consumers

2015 ◽  
Vol 16 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Jakob Cakarnis ◽  
Steve Peter D'Alessandro
Keyword(s):  
Comparative Study ◽  
Survey Research ◽  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Consumer Knowledge ◽  
Content Type ◽  
Young Professionals ◽  
The Impact ◽  
Selection Of

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

Brand personality of fabric content: an application of the multidimensional implicit association test (md-IAT)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seung-Eun Lee
Keyword(s):  
Personality Traits ◽  
Implicit Association Test ◽  
Brand Personality ◽  
Association Test ◽  
Unique Contribution ◽  
Implicit Association ◽  
Convenience Sample ◽  
Personality Dimensions ◽  
Content Type ◽  
Brand Personality Traits

Purpose This study aims to explore whether fabric contents, specifically cotton and polyester, possess particular personality dimensions, as posited by Aaker (1997). The author examined both explicit (conscious, deliberate) and implicit (unconscious, automatic) perceptions of brand personality traits of cotton and polyester. Design/methodology/approach The convenience sample of this study included 51 students from different merchandising classes in a Midwestern university. Participants were first directed to the multidimensional implicit association test (md-IAT) and their implicit perceptions were measured for the content of the two fabrics (cotton and polyester) on five different personality attribute dimensions (sincerity, excitement, competence, sophistication and ruggedness). After the IAT, participants completed the post-IAT survey, including explicit measures of brand personality attributes of cotton and polyester. Findings The findings of this study show that fabric contents can be successfully described and differentiated by Aaker’s brand personality dimensions. Compared with polyester, the distinctive brand personality of cotton was the favorable association between cotton and sincerity. This association was significantly higher than all other personality dimensions in both consumers’ implicit and explicit perceptions. Neither cotton nor polyester was significantly associated with the exciting, competent and sophisticated personality dimensions. Originality/value A unique contribution of this study is that it examines implicit perceptions of the brand personality traits of cotton and polyester. The use of the md-IAT in this study allowed the assessment of consumers’ automatic associations with cotton and polyester of which they may not be aware.

The effects of risk appraisal and coping appraisal on the adoption intention of m-payment

2019 ◽  
Vol 38 (1) ◽  
pp. 21-33
Author(s):  
Shih-Tse Wang
Keyword(s):  
Structural Equation ◽  
Design Methodology ◽  
Credit Cards ◽  
Equation Modeling ◽  
Risk Appraisal ◽  
Content Type ◽  
Response Efficacy ◽  
And Coping ◽  
Practical Implications ◽  
Adoption Intention

Purpose Although debit and credit cards are widely accepted, consumers still have significant concerns pertaining to the risk of the cards’ usage. Mobile payment (m-payment) acts as identification and a virtual card for consumers, and is viewed as more secure than card payments. However, the influence of consumers’ appraisal of debit and credit cards usage and using m-payment on the adoption intention of m-payment is unclear. Using the protection motivation theory, the purpose of this paper is to explore the effect of risk appraisal of using debit or credit cards and coping appraisal of using m-payment on the adoption intention of m-payment. Design/methodology/approach A total of 418 volunteers participated in this study, and structural equation modeling was employed to test the employed conceptual model. Findings The results revealed that risk appraisal (i.e. vulnerability, severity and benefit) of using debit or credit cards did not affect m-payment adoption intention. Moreover, self-efficacy and response efficacy positively affected m-payment adoption intention, whereas response cost negatively influenced m-payment adoption intention. Originality/value Both theoretical and practical implications are presented in this paper for m-payment marketers to develop effective communication strategies for promoting m-payment adoption.

Sunk time fallacy with recoverable monetary costs

2019 ◽  
Vol 37 (2) ◽  
pp. 154-167 ◽  
Author(s):  
Shivendra Kumar Pandey ◽  
Dheeraj Sharma
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Time Lag ◽  
Minimum Threshold ◽  
Content Type ◽  
Product Return ◽  
Online Retailers ◽  
Significant Difference ◽  
Practical Implications ◽  
Simultaneous Variation

PurposeThe purpose of this paper is to examine the sunk-time fallacy in the context of simultaneous variations of time and money when financial expenditures are recoverable. The study compares a recoverable monetary scenario with conditions where money is either not spent or spent, but purchase and payment are decoupled.Design/methodology/approachA sample of 184 participants was utilised in three experiments. A randomised design was used, and experimental manipulations were achieved using the vignette method.FindingsThe results indicate that consumers are susceptible to sunk-time fallacy. Specifically, results suggest that there is no significant difference in sunk cost fallacy when a consumer spends only time vs when a consumer spends money and time both but money can be recovered. The sunk-time fallacy did not occur in credit card purchases. The sunk-time fallacy did not happen in temporal investments of less than a week but appeared in the temporal investments of two weeks.Research limitations/implicationsThe study indicates that sunk-time fallacy occurs after a minimum threshold of time is spent on a particular activity.Practical implicationsOnline retailers may vary the delivery period of ordered merchandise to reduce product returns. Online retailers may not deliver the merchandise too early to take advantage of the sunk-time fallacy. Bestseller products should be quickly delivered as there are lesser chances of product return. On the other hand, new products or products with mixed consumer reviews should be provided preferably with a time lag beyond a week. Managers should incentivise payments through debit card/net banking and cash-on-delivery to reduce returns by using sunk-time fallacy.Originality/valueThe study is perhaps the first one to study the sunk-time fallacy in a simultaneous variation of time and money where monetary costs can be recovered fully.

Drivers of lending decision in peer-to-peer lending in Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Tariqul Islam Khan ◽  
Yong Yee Xuan
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Peer To Peer ◽  
Snowball Sampling ◽  
Content Type ◽  
P2p Lending ◽  
Lending Decisions ◽  
Lending Decision ◽  
Practical Implications ◽  
Sampling Survey

PurposeDespite the emergence of peer-to-peer (P2P) lending in Malaysia, there is a knowledge gap on what drives the lending decision of P2P lending in the emerging Malaysian market. This research investigates how borrower's loan tenure, funding purpose, verified documents, accumulated transaction and repayment history, age, trustworthy and geographical resemblance affect likelihood of lending decision in P2P platform.Design/methodology/approachUsing snowball sampling, survey data was collected from 300 online banking users who were willing to invest in online P2P platform from different states in Malaysia (i.e. Selangor, Malacca, Johor and Negeri Sembilan). For estimation, regression analyses were estimated.FindingsThe findings suggest that borrower's loan tenure and borrower's age increase the probability of lending in online P2P platform, while funding purpose of credit card reduces the likelihood of lending in the P2P platform. The findings contribute to the signalling theory.Practical implicationsThe findings imply that borrowers need to concentrate on loan tenure and clearly indicate their age in the listing in order to increase the funding probability. Moreover, they are suggested not to submit listing for credit card as funding purpose.Originality/valueThis study is first in its nature about P2P lending in Malaysia and the possible factors that influence lending decisions in this new financing platform.

Sport in Europe’s era of austerity: crisis or adaptation?

2017 ◽  
Vol 37 (1/2) ◽  
pp. 123-130 ◽  
Author(s):  
Ken Roberts
Keyword(s):  
Public Sector ◽  
Financial Crisis ◽  
Design Methodology ◽  
Review Of Literature ◽  
Consumer Spending ◽  
Historical Trends ◽  
Content Type ◽  
Financial Crisis Of 2008 ◽  
Practical Implications

Purpose The purpose of this paper is to assess whether European sport has been damaged or adapted during the austerity in public sector and consumer spending that has followed the financial crisis of 2008-2009. Design/methodology/approach Review of literature and data. Findings Sport has adapted successfully. Research limitations/implications The overall conclusions will not apply to every sport in every country. Practical implications Sport flourishes when it adapts to historical trends. Originality/value Updates all previous reviews.

scholarly journals Cash means control

2019 ◽  
Vol 27 (3-4) ◽  
pp. 55-62
Author(s):  
Yevgen Bogodistov ◽  
Jürgen Moormann
Keyword(s):  
Exploratory Study ◽  
Implicit Association Test ◽  
Design Method ◽  
Association Test ◽  
Future Research ◽  
Implicit Association ◽  
The Relationship ◽  
Method Approach ◽  
Practical Implications

Purpose – to investigate reasons and conditions impacting payment preferences. Design/Method/Approach. In this exploratory study, we apply the Implicit Association Test in order to investigate whether the prejudice of the population of some countries such as Germany preferring cash holds. Findings. Cash payments still play a major role in a number of countries although other payment options, namely card payments, are promoted heavily.  We discover that the type of payment and the level of control are implicitly associated. We manipulate the emotions of fear and joy. The relationship changes when participants experience fear, whereas emotion of joy does not produce statistically significant effects. Practical implications. The results have major implications for the design of payment processes. Originality/Value. Our study helps explain preferences with regard to payment types as well as predict them as a response to scary or joyful events. Research limitations/Future research: Generalizability is limited. Future research can focus on other emotions and types of payment (e.g., NFC).   Paper type – empirical.    

The price isn’t always right

2020 ◽  
Vol 36 (3) ◽  
pp. 36-38
Keyword(s):  
Case Studies ◽  
Credit Card ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
Hotel Room ◽  
Pertinent Information ◽  
Common Parlance ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings One of the age-old business mantras to enter into common parlance is that the ‘customer is always right’, and at some stage or other we have probably invoked this or similar sentiments when arguing with somebody who has tried to sell us something that falls short of its claims. Whether it is the standard of a hotel room, an erroneous charge on a credit card bill or a faulty bread maker, when we as consumers are sure of our own rights and the sellers’ shortcomings, we will not be afraid to say so and demand some form of recompense. After all, if we want a better room, money paid back or a replacement bread maker, we should get it. Because the customer is always right. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Research on the competitive dynamics and structured context analysis

Kybernetes ◽  
2016 ◽  
Vol 45 (10) ◽  
pp. 1542-1554
Author(s):  
Wen Pei ◽  
Jeng-Huan Li
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Competitive Dynamics ◽  
Competition Strategy ◽  
Research Model ◽  
Competitive Response ◽  
Context Analysis ◽  
Content Type ◽  
Second Stage

Purpose The credit card business has been one of the key businesses for banks in Taiwan. The purpose of this paper is to use competitive dynamics and structured context analysis (SCA) to explore the competition relationships among market, resources, and strategies concerning the credit card issued banks in Taiwan. Design/methodology/approach The market commonality and resource similarity analysis of competitive dynamics in the first stage obtained the competitive mapping of four major credit card issue banks, as well as the differences of competition strategy. In the second stage, 1,968 pieces of data on credit card news from 2013 to 2014 were collected. SCA was used to analyze the competitive action, competitive response, number of responses, response lag, and response order. Findings The competitor mapping and four hypothesis obtained from competitive dynamics correspond to the credit card competition strategy, as obtained from SCA. Originality/value This research combined competitive dynamics and SCA to analyze the credit cards market in Taiwan. The research model could be used in the other financial market.

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