The researcher team found that the shopping baskets of those who paid with credit cards had a larger proportion of impulsive and unhealthy food items like ice cream, candies, cookies, and potato chips. This is what the authors had to say: “Our conceptualization is based on the premise that when consumers encounter vice products - such as cookies, cakes and pies – the emotive imagery and associated desire trigger impulsive purchase decisions.
Today, it is easy to imagine that because these methods make spending money even more painless, they are encouraging shoppers to buy impulsively, over-spend, and purchase unhealthy products even more.
Recent research shows that payment method also affects the shopper’s relationship with the purchased product.
Because of these two reasons, people overspend when using credit cards.
In one study, the authors found that participants were willing to spend $175 to throw a Thanksgiving party when using a credit card to buy the food, but only $145 when using cash. Another consumer psychology study analyzed the food buying behavior of a thousand households over 6 months.
‘I appreciate you may wanna get nails, hair and a wax. ‘Use my card it’s black with private banking so there’s no limit ( but don’t be buying a new car lol).’ Once the star had realised his faux pas he was quick to take to social media to announce his woes. Accidentally Snapchat my credit cards, Had 186 screen grabs!
While some are completely bemused by the situation, others are highly amused and thus ripping him to shreds.
In a series of studies done by Avni Shah and colleagues in a just-published paper, the consumer psychologists found that shoppers who paid cash to buy something increased their emotional attachment with the purchase compared to credit card users.
In one study, the authors sold mugs emblazoned with the university logo at a discounted price, and then asked study participants the minimum amount that they would demand to give up their mug.
(Well, maybe not drugs, but that’s a different blog post for another day.) The benefits of using a credit card are obvious. Well, it turns out that it does matter, and in rather interesting and important ways.
Most of our understanding about the effects of paying by cash vs.
In other studies, the authors also found that cash users are also less interested in the options they did not select.