Credit Cards as Lifestyle Facilitators

Bernthal, Matthew J.; Crockett, David; Rose, Randall L.

doi:10.1086/429605

Cited by 196 publications

(202 citation statements)

References 31 publications

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“…Our assumption, and one supported by Raghubir and Srivastava's (2008) suggestion that different schema may develop over time for various payment mechanisms, is that these activated concepts are more closely related to the benefits of products under consideration when credit cards are primed rather than cash. If learning is a key mechanism in the development of different associative networks related to credit cards and cash, it follows that the credit card premium may differ (or even be eliminated) for those consumers whose credit card use leads to traumatic consequences, what Bernthal, Crockett, and Rose (2005) have referred to as the "debtor's prison." In other words, any strong negative experiences with credit card use may fundamentally alter consumers' associative networks linked to that mode of payment.…”

Section: Theoretical Extensionsmentioning

confidence: 99%

Do Payment Mechanisms Change the Way Consumers Perceive Products?

Chatterjee¹,

Rose²

2012

J Consum Res

179

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Do payment mechanisms change the way consumers perceive products? We argue that consumers for whom credit cards (cash) have been primed focus more on benefits (costs) when evaluating a product. In study 1, credit card (cash) primed participants made more (fewer) recall errors regarding cost attributes. In a word recognition task (study 2), participants primed with credit card (cash) identified more words related to benefits (costs) than those in the cash (credit card) condition. In study 3, participants in the credit card (cash) condition responded faster to benefits (costs) than to costs (benefits). This differential focus led credit card primed consumers to express higher reservation prices (studies 1-3) and also affected their product choices (study 4) relative to those primed with cash.T he use of a credit card as a payment mechanism increases the propensity to spend as compared to cash in otherwise identical purchase situations (Feinberg 1986;Hirschman 1979;Prelec and Simester 2001;Soman 2001;Soman and Cheema 2002), a finding typically referred to as the credit card premium. While prior research has explained the spending effects of different payment mechanisms by attributing them to memory processes (Soman 2001), decoupling of purchase from the pain of payment (Prelec and Loewenstein 1998), classical conditioning (Feinberg 1986), and processing fluency (Mishra, Mishra, and Nayakankuppam 2006), they remain silent as to consumers' product evaluations and choices. It is implicit in this stream of research that the product intended for purchase is perceived and evaluated the same way across different payment mechanisms.We take a fresh look at the credit card premium and argue Promothesh Chatterjee is assistant professor of marketing at the KU School of Business, University of Kansas, 1300 Sunnyside Avenue, Lawrence, KS 66045-7585, e-mail: chatterjee@ku.edu. Randall L. Rose is chair and professor of marketing, Moore School of Business, University of South Carolina, 1705 College Street, Columbia, SC 29208, e-mail: roser@moore.sc.edu. The authors contributed equally, and names are listed in alphabetical order. The authors would like to thank Stacy Wood King, Caglar Irmak, Terry Shimp, Tom Kramer, Ashwani Monga, the editor, the associate editor, and three reviewers for their helpful comments and suggestions at various stages of this research. Debbie MacInnis served as editor and Pierre Chandon served as associate editor for this article.Electronically published August 11, 2011 that consumers' perception and evaluation of the products under consideration differ across payment mechanisms, more specifically, credit card and cash. That is, consumers who vary in terms of the salience of various payment mechanisms at the time of product evaluation and choice evaluate the same product in fundamentally different ways-the attention they allocate to different product features varies significantly. When credit cards as a payment mechanism are more accessible, consumers attend more to a product's benefits relative to the c...

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Section: Theoretical Extensionsmentioning

confidence: 99%

Do Payment Mechanisms Change the Way Consumers Perceive Products?

Chatterjee¹,

Rose²

2012

J Consum Res

179

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“…General optimism about the economy in the United Kingdom, Spain, Ireland and the United States during the last decade, and the escalation in property prices, had served to discourage saving (Bernthal, Crockett and Rose, 2005;Braucher, 2006). At the same time the level of indebtedness had increased, even prior to the banking crisis of 2008/2009.…”

Section: The Economic Depression Macroeconomic Policy and Post Carbomentioning

confidence: 99%

“…It was one way in which the citizen, passenger, or neighbour could be re-labelled as a 'customer', a discursive practice which had grown since the 1980s, and which drew attention to the ubiquity of market relations (Cross, 1993). The interest in so-called 'sustainable consumption' was fuelled by the expansion of credit and market opportunities (Bernthal, Crockett and Rose, 2005). It consisted largely of widening consumer choice, and making new or ethical products more available on the market, rather than in narrowing choice to fewer, more sustainable products and services.…”

Section: The Economic Depression Macroeconomic Policy and Post Carbomentioning

confidence: 99%

The Response of the Hermeneutic Social Sciences to a ‘Post Carbon World’

Redclift¹

2011

International Review of Social Research

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Sociology has taken a 'back seat' in much of the debate, within policy and social science circles, about 'post-carbon' societies, in which our dependence on hydrocarbons is significantly reduced. The low profile of sociology does not reflect a lack of relevance, but rather an inability to follow up on the debates being generated in several congruent areas, including geography, international relations and particularly environmental economics. Sociology has much to contribute to the discussion of societal alternatives, not least in the work being undertaken on utopias and governance. It is suggested that sociologists can enhance the role of the social science disciplines, and that of sociology in particular, by reengaging in the wider discussions, lending a hermeneutic understanding to the current policy debates about responding to climate change.

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“…Surprisingly, the mature market represents the second fastest growing population segment engaged in internet use. Therefore, the internet may also become a viable source of fashion information (Bernthal et al, 2005). Assael (1998) described that the focus on time savings convenience in the 1990s has created two trends in interests to food consumption: (i) Grazing-It is the need to eat on the run.…”

Section: Literature Reviewmentioning

confidence: 99%