This article emphasizes the role of categorization in mental accounting and proposes that once a mental account is established, purchases that are highly congruent with the purpose of the mental account (i.e., typical category members) will be more preferred in selection decisions compared to purchases that are less congruent (i.e., atypical category members). This hypothesis is tested in the context of gift cards. Six studies find that people shopping with a retailer-specific gift card-and so, the authors argue, possessing a retailer-specific mental accountexpress an increased preference for products more typical of the retailer compared to those shopping with more fungible currency. This pattern is found to occur for both well-known retailers, where people already possess product-typicality knowledge, and fictional retailers, where product-typicality cues are provided. An alternative account based on semantic priming is not supported by these data. These results both broaden the contemporary understanding of how mental accounting influences preferences and provide retailers deeper insight into their customers' decision processes.Keywords: mental accounting, categorization, gift cards, mental representation M ental accounting is a framework for understanding how people label and track their money (Thaler 1985(Thaler , 1999. The present work examines the role of mental accounting in product selection decisions, arguing that the formation of a mental account can predictably change preferences for one type of product over another. Specifically, purchases most congruent with the purpose of the mental account will become more preferred. Further, congruency with the mental account can be assessed using established principles of categorization and mental representation.Our research focuses on a common situation where new mental accounts are likely to arise-the acquisition of gift cards. We argue that acquiring a gift card from a retailer (hereafter, a "retailer-specific" gift card) creates a goal to purchase from that retailer. From this premise, we build on research that argues mental accounts are formed around goals (Brendl, Markman, and Higgins 1998). Thus receiving a retail-specific gift card should trigger the intent to spend it and initiate a corresponding mental account to monitor transactions in service of this spending goal.Nicholas Reinholtz (nicholas.s.reinholtz@colorado.edu) is a postdoctoral research associate at the University of Colorado Boulder, Leeds School of Business, S442 UCB, Boulder, CO 80309. Daniel M. Bartels (bartels@uchicago.edu) is an assistant professor of marketing at the University of Chicago, 5807 S. Woodlawn Ave., Chicago, IL 60637. Jeffrey R. Parker (jeffparker@gsu.edu) is an assistant professor of marketing at Georgia State University, PO Box 3991, Atlanta, GA 30302. The authors thank Charlene Chen, Don Lehmann, Jonathan Levav, Malia Mason, Oleg Urminsky, Liad Weiss, Lawrence Williams, George Wu and his lab group, participants in a University of Colorado seminar, and members of hocag ...